1. Mortgage Default Insurance Update Human Settlements Portfolio Committee 23 November 2011

2. ACHIEVEMENTSACHIEVEMENTS MDI company registered. One major bank has agreed to share data that would inform funding model. MDI Business Plan forecast revised.

3. Select a service provider for the IT architecture plan by November 30, 2011. Review product description as a result of lender consultation by December 15, 2011. Test the continued applicability of the pricing model by December 15, 2011. NEXT STEPS – SHORT TERM ACTIONS

4. Finalise master agreement with lenders by December 23, 2011. Finalise MDI guidelines in line with current product by December 23, 2011. Continue application process for a license from the Financial Services Board (ongoing) – complete licensing by 31 March 2012. NEXT STEPS – SHORT TERM ACTIONS (CONTINUED)

5. Produce supporting documents and forms by February 29, 2012. Develop Risk Management, Audit and Monitoring processes by March 31, 2012. Sign an agreement with at least one major lender by March 31, 2012. NEXT STEPS – MEDIUM TERM ACTIONS

6. EARLY PILOT TESTING ACTIVITIES 20112012 DecJanFebMarAprMayJunJulAug Sign an agreement with one of the major Banks Identify a pilot project Finalising IT testing Implement MIS & begin testing of operational systems Launch test pilot

7. Implement MIS and begin testing of operational system by June 2012. Finalise IT testing and implement pilot product with at least one lender by July 2012. Provide Underwriting and Default Management Training by August 2012. Implement Business Development and Marketing initiatives by September 2012. Formal launch of Mortgage default Insurance Company by October 2012 NEXT STEPS – LONGER TERM ACTIONS

8. Concurrent approval by Minister of Finance Minister which entails: a llocation of the MDI capitalisation – R150 million. the issuing of the R1 billion guarantee for initial implementation of the MDI. Signing agreements with Banks; Obtain a license from the Financial Services Board (FSB) by 31 March 2012. CHALLENGESCHALLENGES

9. ACTIVITYTARGET DATE Master AgreementNOVEMBER 2011 Underwriting Policies and GuidelinesDECEMBER 2011 Supporting Documents and FormsFEBRUARY 2012 Completion of licensing process (Financial Services Board)MARCH 31, 2012 MIS Concept and Loan Origination systemsJUNE 2012 IT testing and pilotJULY 2012 Marketing & Business DevelopmentSEPTEMBER 2012 Formal LaunchOCTOBER 1 2012 MDI IMPLEMENTATION MILESTONES

11. THANK YOU 11