1. Dutch Treat Conference Life Mortgage and Real Estate Officers Council 2014 Mid-Term Elections Wild Dunes – Charleston, SC September 30 th, 2014 Presented by Bill Killmer Senior Vice President, Legislative and Political Affairs Mortgage Bankers Association

2. 2 “The first requisite of a good citizen in this Republic of ours is that he shall be able and willing to pull his weight.” - Teddy Roosevelt, New York City, March 11, 1902

3. 3 Political Landscape Key Buzzwords: “New Electorate” – Ground Game – GOTV GOP Intensity – very few “swing” votes Image of the POTUS – not on the ballot (41/54)? Lingering Economic Anxiety Dem Money Advantage – Impact of GOP Primary Wars – Individual State Arm Wrestling

4. 4 Legislative Environmental Scan  Policy landscape: regulatory implementation continues; major legislative proposals and high level of dysfunction remain  The 113 th Congress: House Ratio: 233 GOP, 199 Democrat, 3 Vacancies (Andrews, Cantor, Watt) Senate Ratio – 53 Democrats, 45 GOP, 2 Independents  Mid-terms loom – campaigns rage on – Republic is safe (for now)  Bottom line: Unique necessity for stakeholders to engage, educate and influence policy makers BK

5. 5 Senate Battleground: 2014

6. 6 Mid-term Election Outlook House – Structural majority for GOP 44 open House seats as a result of retirements and runs for higher office Retirements: evidence of frustration Senate – 36 seats in play (21 D, 15 R) GOP conversions – WV, SD, MT Others to watch – AK, AR, CO, LA, MI, NC, IA, NH GOP holds in Georgia, Kentucky, and Kansas?

7. 7 1 ST Loss Position View From Washington – Key Players

8. 8 So What?

9. 9 Major Commercial/Multifamily Issue Areas Implementation of Securitization Rules (Risk Retention) FHA Multifamily Status Tax Issues for Real Estate Finance TRIA The “Unexpected” The Future of the GSEs – Fannie Mae and Freddie Mac

10. 10 Q/A Questions Comments? Rebuttals? Accusations?