State of Mortgage Lending – National View

Greater Cincinnati MBA

September 17, 2013

Presented by

Bill CosgroveVice ChairmanMortgage Bankers Association

2

Housing Market – Bright spot in U.S. Economy

Source: MBA – March 2013 Mortgage Finance Forecast

3

Inventory of Homes – Dropped Sharply

Sources: US Census Bureau, New Residential Sales; National Association of Realtors ®, Existing Home

Sales via Moody’s Economy.com.

4

Ohio vs. National – NDS Data

Ohio US Total

Serious Delinquency

Q2 2012 8.05% 7.31%

Q2 2013 6.45% 5.88%

Foreclosure Starts

Q2 2012 1.09% 0.96%

Q2 2013 0.70% 0.64%

Unemployment Rate 7.07% 7.57%

Refinance Share 68.2% 72.4%

YOY Home Price Change (Q1 2013)

-.42% 2.01%

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Oversized & Outdated – Gov’t Dominated

1ST Loss Position

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Private Capital First

1ST Loss Position Backstop & Liquidity

SECONDARY

MARKET

STRUCTURE

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GSE Single Family Transition Steps

Risk Share

Common Security

Small Lender Access

Credit Access

Securitization Platform

End

State

End StateTransitionConservatorship

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Hundreds of Rules

QM

QRM

Servicing Standards

Licensing

Loan Officer Compensation

RESPA/TILA HOEPA

Basel III

Appraisal Standards

ECOA Disclosure

State Level G-Fee

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Year of Implementation

ALREADY THIS YEAR

ATR/QM Final Rule

Loan Officer Rule

Servicing Rule

Disparate Impact

Basel III

STILL MORE TO DROP!

QRM (re-proposed, but not final)

RESPA/TILA

10

Be prepared!

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Become a member!

JOIN

THE

TEAM

BE PART OF

THE

SOLUTION

HAVE

YOUR

VOICE

HEARD

GRAB A

SEAT AT

THE TABLE

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Grassroots in Action - MAA

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Conferences

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Conferences

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Together, we can affect change!

ONE INDUSTRY

ONE VOICE

OUR FUTURE