1. 1 Evaluating Single Family Lending Options NCSHB August 2015

2. 2 Our Mission: Housing is the foundation for success, so we collaborate with individuals, communities and partners to create, preserve and finance affordable housing.

3. 3 Importance of Single Family Lending for HFAs Core Mission Proven Expertise with Successful Homeownership for 1 st Time Homebuyers Historical Strength Produces Significant Revenue

4. 4 Elements Important to Viable Options for your HFA Size Volume Closing cost/down payment resources Lender Network Competition Internal Capacity

5. 5 Expertise to Run your Single Family Business (buy or build) Program Design and Marketing Bond Compliance Review Underwriting Review Pipeline Management/Hedging Servicing/Master Servicing Financial Structuring/Bond Reporting

6. 6 Program Design and Marketing Targeting Priorities – First time homebuyers, Households of color, Families w/children, Veterans, Employer assisted Mortgage Products – FHA, Fannie, Freddie, Conventional Down payment/Closing Cost Resources – Deferred loans, Amortizing loans, Grants

7. 7 Funding Options TBA Market Leveraging Existing Bond Issues Pass–through Bonds Best Execution – All of the Above

8. 8 Elements of Minnesota’s “Best Execution” Strategy All 1 st Time Homebuyers Bond Qualified All Loans converted to MBS All Loans Hedged in the TBA Market Warehouse using Balance sheet & FHLB Present Value Analysis – Deliver to TBA or Sell Bonds Roll Hedge Costs into any Bond Sale

9. 9 For more information Mary Tingerthal Commissioner, Minnesota Housing Mary.tingerthal@state.mn.us 651-296-5738