TBA 2.0 and What s Next for Single-Family Finance

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1 April 2016 TBA 2.0 and What s Next for Single-Family Finance C. Scott Riffle Senior Vice President riffle@gkbaum.com Public Finance Headquarters 1400 Wewatta St., Suite 800 Denver, CO (800)

2 The Basics LOAN/ FUNDING PROCESS LOAN FUNDED AND SOLD YOUR HFA PROGRAM SPONSOR PROGRAM SPONSOR = DPA MORTGAGE LENDERS ORIGINATES AND CLOSES MORTGAGE CUSTODIAN HFA Fee Paid (1x) PIPELINE MGMT HEDGES MORTGAGE PRODUCTION & SETS MORTGAGE RATES COMPLIANCE + ONLINE RESERVATIONS LOAN/ REPAYMENT MONTHLY MORTGAGE PAYMENTS PAID 2

3 A TBA Program To Believe In 3

4 Beyond The Basics LOAN/ FUNDING PROCESS LOAN FUNDED AND SOLD YOUR HFA PROGRAM SPONSOR MORTGAGE LENDERS ORIGINATES AND CLOSES MORTGAGE HFA Fee Paid (1x) PIPELINE MGMT HEDGES MORTGAGE PRODUCTION & SETS MORTGAGE RATES COMPLIANCE + ONLINE RESERVATIONS LOAN/ REPAYMENT MONTHLY MORTGAGE PAYMENTS PAID Ongoing HFA Fee 4

5 Beyond the Basics HFA provides 1.00% additional DPA upfront in exchange for 0.25% paid ongoing. Offers more DPA options Provides a higher level of DPA Creates legacy income for the HFA Monthly remittances Prepayment risk Counterparty risk LOAN/ REPAYMENT MONTHLY MORTGAGE PAYMENTS PAID Ongoing HFA Fee 5

6 TBA For America 6

7 Program Enhancements LOAN/ FUNDING PROCESS LOAN FUNDED AND SOLD YOUR HFA PROGRAM SPONSOR MORTGAGE LENDERS ORIGINATES AND CLOSES MORTGAGE MULTIPLE S X Y Z CUSTODIAN HFA Fee Paid (1x) PIPELINE MGMT HEDGES MORTGAGE PRODUCTION & SETS MORTGAGE RATES COMPLIANCE + ONLINE RESERVATIONS LOAN/ REPAYMENT MONTHLY MORTGAGE PAYMENTS PAID 7

8 Program Enhancements WHY MULTIPLE S? Specialization Loan Type VA USDA Sec k Rate Advantage Competition MULTIPLE S X Y Z FICO Score Credit Quality DTI 8

9 Program Enhancements LOAN/ FUNDING PROCESS YOUR HFA PROGRAM SPONSOR ADVISOR COMPLIANCE LOAN FUNDED AND SOLD MORTGAGE LENDERS MULTIPLE S CUSTODIAN PIPELINE MGMT HFA Fee Paid (1x) CAPTIVE LENDERS: ORIGINATES, CLOSES, SERVICES AND HOLDS MORTGAGE LOAN/ REPAYMENT MONTHLY MORTGAGE PAYMENTS PAID 9

10 Reigniting the Promise of TBA 10

11 Marketing Ideas Every Door Direct Mail (EDDM) Target routes within a zip code ID demographics using USPS website Cost effective direct mail Social Media Hire a Social Media Expert Facebook: Reach People Near Your Business You must create a business page which requires a personal Facebook page Low cost per impression Demographic targeting available Budget controls available LinkedIn Twitter Internet Marketing Realtor.com Certified Realtor HFA provided Additional Offerings MCC Management Lender Presentations and Training 11

12 Make TBA Great Again! 12

13 This report was prepared from data believed to be reliable but not guaranteed by us without further verification or investigation, and does not purport to be complete. It is not to be considered as an offer to sell or a solicitation of an offer to buy the securities of the entities covered by this report. Opinions expressed are subject to change without notice. George K. Baum & Company may act as a principal for its own account or as agent for another person, in connection with the sale or purchase of any security which is subject in this report. 13

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