Mortgage Industry Outlook: FHLB Des Moines 2018 Mortgage Conference

Mortgage Industry Outlook: FHLB Des Moines 2018 Mortgage Conference April 2018 Presented by Mike Fratantoni Mortgage Bankers Association

Purchase Volume Rising: Seasonality Increasing in Importance Source: MBA Weekly Applications Survey 2

Refis Have Leveled Out Source: MBA Weekly Applications Survey 3

Forecast: Steady Purchase Growth Source: MBA Forecast 4

MBA Forecast Summary 2017 2018 2019 2020 GDP Growth 2.5% 2.4% 2.3% 2.1% Inflation 2.1% 2.3% 2.3% 2.5% Unemployment 4.4% 3.8% 3.7% 3.9% Fed Funds 0.625% 1.375% 2.375% 3.125% 10-year Treasury 2.4% 3.2% 3.5% 3.5% 30-year Mortgage 3.9% 4.9% 5.4% 5.4% New home sales (000s) 624 642 667 685 Existing home sales (000s) 5,538 5,638 5,786 5,866 Purchase originations ($B) 1,110 1,172 1,250 1,317 Refi originations ($ B) 600 438 395 395 Total originations ($B) 1,710 1,610 1,645 1,712 Mortgage debt outstanding ($B) 10,010 10,370 10,760 11,130 Source: MBA Forecast 5

Volatile Stock Market Source: Federal Reserve, NYSE 6

Trade Worries 7

Job Growth Unexpectedly Strong Source: BLS 8

Wage Growth Slowly Increasing Source: BLS 9

Core Inflation Stepping Up 3.0 Consumer Price Index Year over year percent change 2.5 2.0 2.2 1.8 1.5 1.0 0.5 - (0.5) All Items exc. Food & Energy All Items (1.0) Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Source: BLS 10

Global Yields Have Increased Source: Thomson Reuters 11

Source: Congressional Budget Office 12

Changing Investor Perceptions of Fed Rate Path 13

Rates Expected to Increase Source: Federal Reserve, Freddie Mac, MBA 14

Millenials Hitting Peak Housing Demand Years 5.0 4.5 Millions Avg=4.3 4.7 4.0 3.5 3.9 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Headship rates increase from 15% to 45% Born 1980 or later Born 1966-80 Born 1948-65 Born 1947 or earlier 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100+ 15

Potential for 16 Million Additional Households by 2024 Changing Demographics and Economy Plus Trends Projected Changes in Households, by Age 2014-2024 Millions 4 3 2-2.1 million 1 0-1 +5.1 million +12.9 million -2 Using Forecasted Headship Rates -3 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-70 70-75 75-80 80+ Non-Hisp. White Black Asian Other Hispanic Source: IPUMS CPS and MBA 16

Higher Levels of Education, Especially Among Women 40% Percent of Women and Men with Bachelor's and Higher Degrees, Age 25-32 35% 38% 30% 31% 25% 23% 20% 15% 10% 5% 0% 19921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014 Bachelors Women Masters+ Women Bachelors Men Masters+ Men Sources: IPUMS CPS and MBA 17

College Graduates Earn Nearly Twice the Wages of High School Graduates 100 US College/High School Premium 1975-2014 College versus high school real wage gap (%) 90 80 70 60 50 40 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015 Source: IPUMS CPS, MBA, Autor (2014) 18

Diverging Homeownership Trends 75% Homeownership Rate of 16 64 Year Old Heads By Education 70% 65% 65% 60% 55% 53% 50% College Degree, 16-64 year olds No College Degree, 16-64 year olds Source: IPUMS CPS, MBA 19

The Rise of Alternative Student Debt Repayment Plans $700 Chart of the Week - January 27, 2017 Federal Direct Student Loans in Repayment ($B), By Repayment Type $600 $500 $400 $300 $200 $100 $0 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 Fixed Payment Other Graduated payment Income-Contingent Income-Based Pay As You Earn REPAYE Source: Office of Federal Student Aid and MBA 20

Where do Households Want to Live? Growth in Cities Among College-Educated 25-44 Year Olds, Suburbs for Rest The aggregate US population is growing faster in the suburbs relative to downtowns. But the population of 25-to- 44 year old college-educated Americans is growing three times faster in downtown areas than in the suburbs in the 50 largest CBSAs. Source: Couture and Handbury (2016) estimates using Census and ACS data 21

A Decade of Unusual (for the US) Housing Growth Millions 14 12 10 Net Change in Households, by Structure Type and Tenure (millions) Rented Owner-Occupied 8 6 11.2 4 2 0 8.1 0.8 0.9 1.8 1.6 1.0 1.2 5.7-0.8 1.4 3.0-2 Single Family Multifamily Single Family Multifamily Single Family Multifamily 1987-1997 1997-2007 2007-2017 Source: Adjusted CPS, MBA 22

Declining Inventories for Sale Constraining Existing Home Sales Source: NAR, MBA 23

Single Family Starts Still Gathering Steam; MF Steady 2200 Single and Multifamily Housing Starts (Seasonally adjusted annualized rate) 2000 1800 1600 1400 Thousands 1200 1000 800 600 400 200 0 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Single Family Starts (SAAR) MF Starts (SAAR) Total Completions (SAAR) Source: Census, MBA 24

Lack of Labor Holding Back Single Family Housing Starts Source: BLS, NAHB 25

House Price Growth Outpacing Income Growth; Price Gains to Slow Source: FHFA, BLS 26

Source: MBA Powered by Ellie Mae s AllRegs Market Clarity 27

Source: MBA Powered by Ellie Mae s AllRegs Market Clarity 28

Source: MBA Powered by Ellie Mae s AllRegs Market Clarity 29

Expansion Within Credit Box for Purchase Volume What, if any, stretching of terms to get loan approvals have you seen over the past six months? Debt to income ratios (DTI)/Loan to value ratios (LTV) Approval of nonconforming/jumbo or out of market loans Approval of non qualified mortgage loans Accepting lower credit scores 0% 10% 20% 30% 40% 50% 60% 70% Source: Poll of RMQA and Fraud Prevention Forum Attendees, September 2017, N = 75 30

FHA Credit Easing Source: HUD 31

Shape of the Mortgage Industry Share of Home Purchase Volume (#) by Company Type Share of Refinancing Volume (#) by Company Type 60% 60% 50% 40% 30% 20% 36% 30% 27% 24% 21% 21% 25% 26% 26% 25% 25% 23% 36% 40% 42% 46% 48% 51% 50% 40% 30% 20% 52% 45% 47% 34% 27% 26% 20% 19% 16% 17% 18% 18% 22% 28% 31% 41% 47% 49% 10% 4% 5% 5% 5% 5% 5% 10% 7% 7% 7% 8% 8% 7% 0% Large Depository Community Bank Credit Union (<$10bn Assets) Independent Mortgage Bank 0% Large Depository Community Bank Credit Union (<$10bn Assets) Independent Mortgage Bank 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Source: 2011-2016 HMDA 32

IMB Net Production Income (basis points) $900 107.4 Net Production Income (bps) $800 86.5 Avg. Production Volume ($M) $700 74.6 60.4 67.3 55.3 72.6 73.7 $600 $500 38.2 45.7 42.1 32.1 33.2 45.7 40.5 $400 21.6 24.0 $300 8.7 10.4 9.3 $200 $100 (8.3) $0 Q417 Q317 Q217 Q117 Q416 Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Q314 Q214 Q114 Q413 Q313 Q213 Q113 Q412 Source: MBA s Quarterly Mortgage Bankers Performance Report, www.mba.org/performancereport 33

IMB Fully-Loaded Production Expenses ($ per loan) $900 Fully-Loaded Production Expense ($ per loan) Avg. Production Volume ($M) $800 $700 $600 $500 $400 $300 $200 5,603 5,779 5,818 6,368 6,959 8,025 6,932 6,769 7,000 7,195 6,984 7,080 7,747 7,845 7,120 6,969 7,562 8,887 7,774 8,060 8,475 $100 $0 Q417 Q317 Q217 Q117 Q416 Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Q314 Q214 Q114 Q413 Q313 Q213 Q113 Q412 Source: MBA s Quarterly Mortgage Bankers Performance Report, www.mba.org/performancereport 34

CBCU Network Survey Participants* Alliant Credit Union Alpine Bank of Colorado Associated Bank Atlantic Capital Bank Auburn Bank Bangor Savings Bank Bank 34 Bank of Clarke County BankSouth Mortgage Banner Bank BECU Bank-Fund Staff FCU Bryn Mawr Trust CB&T Mortgage Centier Bank Central Mortgage Company Chartway Federal Credit Union Choice Financial Clear Mountain Bank Colonial Savings, F.A. Commonwealth Bank Community Bank, N.A. Consumers Credit Union CP Federal Credit Union Crescent Mortgage Company Elevations Credit Union Enterprise Bank & Trust Fidelity Bank First Federal Bank First Midwest Bank of Poplar Bluff First Savings Bank First Tech Federal Credit Union FirstBank Firstrust Bank Fulton Mortgage Company Greater Nevada Mortgage (GNM) Great Plains National Bank Holyoke Credit Union Home Savings Bank Huntingdon Valley Bank Johnson Bank Jonah Bank of Wyoming Lafayette Federal Credit Union Legacy Mutual Mortgage Level One Bank Lake Michigan Credit Union MB Financial Bank, N.A. Mercantile Bank of Michigan Meridian Bank Michigan First Mortgage Midland States Bank Mortgage Center L.C. Mountain America Credit Union North American Savings Bank, F.S.B. Navy Federal Credit Union NFM Lending Nicolet National Bank NIH Federal Credit Union Northwest Savings Bank Pentagon Federal Credit Union Pima Federal Credit Union PrimeLending Republic Bank Schools Financial Credit Union SchoolsFirst Federal Credit Union SEFCU Mortgage Services South State Bank Starion Bank The Provident Bank TowneBank Mortgage United Nations Federal Credit Union Virginia Credit Union, Inc. * Completed at least one or more question in survey; Sample size: 72 MBA s CBCU Flash Polling Survey March 13, 2018

Company Profiles Other or Not Reported 18% Credit Union (<$10b in Assets) 17% Large Bank or Credit Union (>$10b in Assets) 17% Smaller Community Bank (<$5b in Assets) 36% Larger Community Bank ($5b - $10b in Assets) 13% MBA s CBCU Flash Polling Survey March 13, 2018

Approximate Annual Production Volume in 2017 More than $5 $2.5 - $5 billion billion 8% 8% $1.0 - $2.5 billion 19% Less than $1 billion 65% MBA s CBCU Flash Polling Survey March 13, 2018

What is your forecast for full-year 2018 volume vs. full-year 2017 volume?* Down >20% 3% Up >20% 16% Down 1-20% 12% Flat 12% Up 1-20% 57% *Current MBA Industry Forecast as of 3/20/18: $1,610 billion in 2018 versus $1,710 in 2017, a 5.8% decrease in volume. MBA s CBCU Flash Polling Survey March 13, 2018

What is your expectation of Q1 2018 volume vs. Q1 2017 volume? Up >20% 4% Down >20% 2% Up 1-20% 38% Down 1-20% 25% Flat 32% MBA s CBCU Flash Polling Survey March 13, 2018

Gross Originations Volume Repeater Companies 217,644 210,448 Gross Originations Volume 471 415 Q317 Q417 865 821 $000s # MBA Industry Estimates ($B) MBA s CBCU Flash Survey Q4 2017

Product Mix (% based on $) Product Mix (% based on $) 87% 81% 79% 80% 71% 66% 64% 50% 25% 43% 41% 37% 30% 30% 32% 30% Q117 Q217 Q317 Q417 15% 15% 13% Purchase Government Fixed Rate Held in Portfolio/Held for Investment Retail Bank Referred MBA s CBCU Flash Survey Q4 2017

Product Mix (% based on $) Repeater Companies Product Mix (% based on $) 76% 73% 65% 62% 32% 40% 35% 32% Q317 Q417 10% 9% Purchase Government Fixed Rate Held in Portfolio/Held for Investment Retail Bank Referred MBA s CBCU Flash Survey Q4 2017

Product Mix (% based on #) Product Mix (% based on #) 89% 87% 84% 85% 71% 66% 64% 50% 27% 41% 37% 36% 32% 29% 24% 25% Q117 Q217 Q317 Q417 16% 16% 15% Purchase Government Fixed Rate Held in Portfolio/Held for Investment Retail Bank Referred MBA s CBCU Flash Survey Q4 2017

Product Mix (% based on #) Repeater Companies Product Mix (% based on #) 82% 80% 66% 62% 28% 33% 34% 31% Q317 Q417 12% 10% Purchase Government Fixed Rate Held in Portfolio/Held for Investment Retail Bank Referred MBA s CBCU Flash Survey Q4 2017

Average Loan Balances ($) Average Loan Balances ($) 236,013 241,311 255,643 254,642 253,221 236,034 248,168 255,381 209,961 192,060 211,560 184,854 252,446 239,717 250,721 254,013 231,318 221,580 227,382 252,203 390,320 341,481 423,440 387,564 377,873 292,591 372,881 270,673 226,707 229,585 226,537 219,935 255,685 241,738 269,027 258,499 242,548 234,472 Q117 Q217 Q317 Q417 MBA s CBCU Flash Survey Q4 2017

Average Loan Balances ($) Repeater Companies Average Loan Balances ($) 393,380 421,429 411,453 258,150 254,289 274,058 274,833 230,532 242,116 330,953 236,704 236,545 265,498 262,596 210,484 202,584 264,651 255,576 249,072 266,924 Q317 Q417 MBA s CBCU Flash Survey Q4 2017

Average Expenses for 2017 Retail Originations Only ($ per loan) Average Expenses for 2017 Retail Originations Only ($ per loan) Sales Expenses $2,337 Processing, Underwriting, Closing, and Other Fulfillment Expenses $1,440 Technology, Post-Closing, Secondary, QC, and Other Production Support Expenses $832 Total Production + Production Support Expenses $4,608 MBA s CBCU Flash Survey Q4 2017

Peer Groups: Overall Net Production Income (bps) 200.0 Large Banks Large Independents Mid-Size Banks Mid-Size Independents 150.0 100.0 50.0 72 15 62 59 41 0.0 (29) (50.0) 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017 Source: PGR: MBA and STRATMOR Peer Group Roundtables: www.mba.org/pgr 48

Peer Groups: Weighted Avg. Purchase Channel Mix (% based on $) Consumer Direct Avg. Purchase Production Volume $22.5B $12.9B $1.3B $1.9B 1% 1% 12% 4% 5% 1% 6% 15% Correspondent 50% 56% Broker Wholesale 2% 12% 89% 77% Retail 35% 32% Large Banks Large Independents Mid-Size Banks Mid-Size Independents Source: PGR (2016): MBA and STRATMOR Peer Group Roundtables: www.mba.org/pgr 49

Peer Groups: Fully-Loaded Retail Channel Production Expenses as % of Total Retail Production Revenue Sales Expense Fulfillment Expense Production Support + Corporate Administration Expense 109% 34% 91% 13% 82% 88% 16% 26% 20% 17% 19% 22% 50% 58% 43% 53% Large Banks Large Independents Mid-Size Banks Mid-Size Independents Source: PGR (2016): MBA and STRATMOR Peer Group Roundtables: www.mba.org/pgr 50

12.00 10.00 Mortgage Delinquency Rates Seasonally adjusted, excludes loans in foreclosure 10.06 8.00 Percent 6.00 4.41 5.17 4.00 2.00 - Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 30 Days Delinquent 60 Days Delinquent 90+ Days Delinquent Source: NDS: National Delinquency Survey: www.mba.org/nds 51

16.00 Mortgage Delinquency Rates by Loan Type Seasonally adjusted, based on loan count, excludes loans in foreclosure 14.00 12.00 Percent 10.00 8.00 6.00 4.00 2.00 10.38 5.17 4.49 4.19 - Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 All Loans Conventional Loans FHA Loans VA Loans Source: NDS: National Delinquency Survey: www.mba.org/nds

Source: PGR: MBA and STRATMOR Peer Group Roundtables: www.mba.org/pgr Peer Groups: Servicing Retention (% of $ originations volume) Large Banks Large Independents 120% Mid-Size Banks Mid-Size Independents 100% 99% 99% 80% 71% 60% 58% 40% 37% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017

Will IMBs Continue to Gain Servicing Share? Share of Servicing Count by Institution Type 2011 2012 2013 2014 2015 2016 89% 86% 78% 71% 69% 67% 22% 29% 31% 33% 11% 14% Depositories IMBs Source: NDS: National Delinquency Survey: www.mba.org/nds

Servicer Profitability ($ per loan) In-House Servicers Net Financial Income Net Operating Income $650 $550 $450 $350 $250 $150 $50 ($50) ($150) ($250) 523 216 268 278 43 41 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf; PGR 1H2017

Fully-Loaded Servicing Operating Costs ($ per loan) Fully-Loaded Servicing Expense - Prime ($ per loan) Corporate Administration Expense Unreimbursed FC and REO Expense Direct Servicing Expense - Default Direct Servicing Expense - Non-Default 204 36 160 135 38 48 25 81 21 26 61 16 37 44 8 15 43 51 52 60 312 314 43 55 261 54 58 105 31 103 73 93 101 98 71 282 250 261 66 46 54 36 34 35 65 53 62 115 117 109 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf; PGR 1H2017

Direct Servicing Expenses ($ per loan) Direct Servicing Expense - Prime ($ per loan) Direct Servicing Expense 4.46% NDS 90+ day Delinquency Rate (% based on #, annualized) 4.11% 4.11% 5.00% 4.50% 3.46% 3.03% 4.00% 3.50% 2.63% 2.30% 3.00% 2.50% 1.82% 1.51% 1.31% 2.00% 1.50% 1.00% 0.50% 58 89 96 121 164 205 171 180 170 171 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017 0.00% Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf; PGR 1H2017

$3,500 $3,000 Chart of the Week - July 21, 2017 Servicing Costs per Loan (Single-Family): Performing vs. Non-Performing Cost of Performing Loans Cost of Non-Performing Loans 2,884 $2,500 $2,000 2,304 2,414 2,000 2,386 2,113 1,826 $1,500 1,369 $1,000 $500 $0 911 704 482 59 77 90 96 114 156 156 181 163 163 163 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf 58

Direct Servicing Costs by Function = $170 per loan (2016) Quality Assurance, $5 Records, $6 Other, $18 Customer Service, $27 Bankruptcy, REO & Other Default, $13 Setups, Transfers & Payoffs, $10 Escrow, $12 Foreclosure, $11 Loss Mitigation, $17 Cashiering & Investor Accounting, $13 Collections, $11 Servicing Systems, $26 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf

Servicer Productivity (Loans Serviced per FTE) Productivity Ratio of Non-Mgmt & Temps to Management FTEs 2,000 1,800 9.2 10.0 9.0 1,600 8.0 1,400 7.0 1,200 5.9 6.0 1,000 5.0 800 4.0 600 3.0 400 2.0 200 0 938 1,119 1,162 1,034 1,051 1,043 1,315 1,589 1,788 1,863 1,638 1,101 1,128 893 766 647 704 684 679 800 1.0 0.0 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf; PGR 1H2017

Corporate Load Factor - Prime ($ per Servicing FTE) Servicing Recapture % (Production from Existing Servicing Customers/Payoffs) 16% 28% 32% 33% 36% 28% 17% 20% 20% 15% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017 Source: MBA s Servicing Operations Study and Forum (Prime Servicers): www.mba.org/sosf; PGR 1H2017

Servicer Issues 1. Natural Disasters and Recovery Operational and Fnancial Issues 2. Servicing FHA Loans, particularly in Disaster Recovery Areas 3. CFPB Changes - Successor in Interest 4. CFPB Changes - Periodic Statements/Bankruptcy Implementation 5. Modernizing Customer Contact Call Centers, Web, Other Communications 6. MSR Sales and Transfers 7. Language Proficiency/Preference 8. Complaints Management 9. State Foreclosure Hurdles 10. Controlling Costs 11. Technology Innovation and Automation 12. IMB Servicer Liquidity and Advance Management 13. Federal and State Exams 14. Use of Subservicer vs. In-House 15. Regulatory Reform and Key Servicer Priorities Source: 2018 MBA Servicer-Only Roundtables

What Do You Perceive is the Biggest Benefit from Offering a Digital Mortgage? 50% 47% 45% 40% 35% 30% 32% 25% 20% 15% 16% 10% 5% 5% 0% Internal Cost Reduction Improved Loan Quality Consumer Satisfaction Other MBA s 2018 Digital Mortgage Technology Profile; https://www.mba.org/store/products/market-and-research-data/mba-digital-mortgage-technology-profile 63

What is the Biggest Inhibitor to Your Ability to Offer a Fully Digital Experience? Lack of vendor options to meet our vision 32% Business leaders need to determine what they want first Other Limited Funding to build it 26% 26% 11% Not knowing how to accomplish it 5% MBA s 2018 Digital Mortgage Technology Profile; https://www.mba.org/store/products/market-and-research-data/mba-digital-mortgage-technology-profile 64

MBA Research Sign-Ups and Services 65

Contact Information and MBA Resources Mike Fratantoni, Ph.D. Chief Economist & Senior Vice President Research and Industry Technology 202-557-2935 mfratantoni@mba.org MBA Research: www.mba.org/research RIHA: www.housingamerica.org 66