1. State of Mortgage Lending – National View Greater Cincinnati MBA September 17, 2013 Presented by Bill Cosgrove Vice Chairman Mortgage Bankers Association

2. 2 Housing Market – Bright spot in U.S. Economy Source: MBA – March 2013 Mortgage Finance Forecast

3. 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. 4 Ohio vs. National – NDS Data OhioUS 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%

5. 5 Oversized & Outdated – Gov’t Dominated 1 ST Loss Position

6. 6 Private Capital First 1 ST Loss Position Backstop & Liquidity SECONDARY MARKET STRUCTURE

7. 7 GSE Single Family Transition Steps Risk ShareCommon SecuritySmall Lender AccessCredit AccessSecuritization Platform End State TransitionConservatorship

8. 8 Hundreds of Rules QM QRM Servicing Standards Licensing Loan Officer Compensation RESPA/TILA HOEPA Basel III Appraisal Standards ECOA Disclosure State Level G-Fee

9. 9 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. 10 Be prepared!

11. 11 Become a member! JOIN THE TEAM BE PART OF THE SOLUTION HAVE YOUR VOICE HEARD GRAB A SEAT AT THE TABLE

12. 12 Grassroots in Action - MAA

13. 13 Conferences

14. 14 Conferences

15. 15 Together, we can affect change!