Executive DataBook 2014 ORIGINATION TRENDS

ONE VOICE. ONE VISION. ONE RESOURCE. Executive DataBook 2014 ORIGINATION TRENDS Prepared by MBA Research & Economics mba.org/research 15531

Executive DataBook 2014 ORIGINATION TRENDS Prepared by MBA Research & Economics SINGLE-USER PRODUCT 2015 Mortgage Bankers Association (MBA). All rights reserved, except as explicitly granted. No part of this survey or data may be reproduced, stored in a retrieval system, transmitted or redistributed, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owner. Raw data provided by the Federal Financial Institutions Examination Council (FFIEC) are available via www.ffiec.gov/hmda. The information and data are provided as is with no warranties of any kind. Use of the data is at the user s sole risk. In no event will MBA be liable for any damages whatsoever arising out of or related to the data, including, but not limited to direct, indirect, incidental, special, consequential or punitive damages, whether under a contract, tort or any other theory of liability, even if MBA is aware of the possibility of such damages. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 2

About the Executive DataBook The MBA Executive DataBook presents findings from MBA s analysis of the 2014 Home Mortgage Disclosure Act (HMDA) in a concise, easy-to-read, visually oriented atlas, designed to showcase what you need to know about loan production in 2014. Please keep the following in mind: This summary provides select statistics on an extensive set of findings and / or MBA analyses. Each page has a footnote indicating which data table references the underlying data. Unless otherwise noted, all data are from 2014 and focus on 1-4 Unit, First Lien, Retail and Broker, Purchase and Refi Originations only. See Methodology, (page 23) for more. Data tables referenced in the footnotes can be purchased by emailing MBAResearch@mba.org or visiting mba.org/originations. Please contact MBAResearch@mba.org with questions or additional data needs. Please visit mba.org/originations for additional information, FAQs and more. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 3

2014: Originations in Review Loan Origination Summary Year1 Type1 Loan Originated Δ14/13 (#) Dollar Volume Δ14/13 ($) Avg. Size 2014 Home Purchase 3,180,598 $743,609,639,000 7% $233,796 2014 Refinancing 2,241,897-56% $491,479,091,000-53% $219,225 2014 All Loans 5,422,495-33% $1,235,088,730,000 - $227,771 2013 All Loans 8,120,756 - $1,753,939,760,000 - $215,982 Annual production volume for 2014 was down 33% from 2013. Home purchase loans saw slight growth (up ) while refinance transactions were down 56% over last year.. 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1-4 Unit, First Lien, Retail/Broker, Purchase/Refi Originations 2008 2009 2010 2011 2012 2013 2014 Home Purchase Refinancing 8 7 6 5 4 1 Refi Share vs. 30-Yr FRM Contract Rate 2008 2009 2010 2011 2012 2013 2014 Refi Share 30 Year FRM Contract Rate Source: Refi Share - HMDA; 30 Year Contract Rate - MBA's Weekly Applications Survey 7 6 5 4 3 2 1 0 Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 1a and 3a for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 4

Purchase Share by Year Non-Depositories accounted for about of all companies reporting in 2014. However, Non-Depositories accounted for 46% of all home-purchase originations (42% in 2013). Credit Union 2,004 28% 2014 Number of Respondents by Company Type Credit Union 166,583 2014 Total Home Purchase Origination Count by Company Type Non- Depository 827 Depository 4,231 6 Non- Depository 1,449,082 46% Depository 1,564,933 49% 2013 2008 Credit Union Credit Union Non- Depository 42% Depository 53% Non- Depository 27% Depository 69% Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 3a for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 5

Independents: Higher Share Depository - Home Purchase Depository - Refinancing With regards to different loan types, depository institutions (Commercial Banks, Thrifts, Savings Institutions) originated of home purchase loans using, and of refinance loans using. 8% 8% 68% VA 7% VA 83% Non-depository institutions (Independent Mortgage Banks) originated 28% of their home purchase volume and 1 of their refinancing volume using an program. Non-Depository - Home Purchase 5 VA 28% Non-Depository - Refinancing 1 1 VA 2% 69% 2% Credit Union - Home Purchase 2% 1% 2% Credit Union - Refinancing 1% Credit unions favored conventional loans. VA VA 89% 96% Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 3d-# for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 6

Share of Home Purchase Declines 2013 Home Purchase by Loan Type 2014 Home Purchase by Loan Type 2013 Depository - Home Purchase 7% 1 VA 7% Share of Total Home Purchase (2013 2014) 1 8% 2014 Depository - Home Purchase 8% VA Across all institution types, the share of home-purchase loans has fallen from in 2013 to 19% in 2014. 68% 68% 2013 Non-Depository - Home Purchase 2014 Non-Depository - Home Purchase 1 53% VA 28% 28% 5 VA The loss in share typically translates into an increase in conventional non-jumbo share. 1% 2% 2013 Credit Union - Home Purchase 3% 2% 1% 2014 Credit Union - Home Purchase 2% 1% 9 VA 89% VA Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 3d-# for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 7

Trends in Average Loan Size Home Purchase: Avg. Size by Company Type and Loan Type Refinancing: Avg. Size by Company Type and Loan Type $300 $300 $250 $240 $251 $250 $236 $236 $241 $200 $215 $194 $201 $209 $208 $199 $197 $193 $192 $172 $175 $165 $222 $204 $170 $217 $184 $220 $193 $200 $209 $212 $174 $225 $216 $217 $215 $214 $171 $169 $158 $226 $223 $225 $205 $163 $161 $164 $150 $150 $100 $100 $50 $50 $0 2008 2009 2010 2011 2012 2013 2014 $0 2008 2009 2010 2011 2012 2013 2014 Depository Non-Depository Credit Union Depository Non-Depository Credit Union Average size grew for home-purchase transactions and increased for refinance transactions (except for non-depositories, which had a slight decline in average loan amount for refinance transactions). Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 3d1-Avg for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 8

Top 10 Lenders by Institution Type Top 10 Depositories Origination Volume Rank Year1 Primary Name2 # $ (000s) Avg ($, 000s) Refi Share 1 2014 WELLS FARGO & CO 341,484 $96,016,682 $281 48% 2 2014 JPMORGAN CHASE BANK, NA 137,703 $42,227,767 $307 58% 3 2014 BANK OF AMERICA CORPORATION 156,451 $40,389,357 $258 67% 4 2014 CITIGROUP INC. 70,578 $20,295,431 $288 66% 5 2014 FLAGSTAR BANK 79,711 $19,218,311 $241 37% 6 2014 USBANCORP 77,156 $17,052,251 $221 58% 7 2014 USAA CAPITAL CORPORATION 52,680 $11,479,656 $218 18% 8 2014 PNC FINANCIAL SERVICES GROUP 59,687 $10,607,500 $178 6 9 2014 PLAINSCAPITAL BANK 48,070 $10,359,315 $216 17% 10 2014 SUNTRUST BANK, INC 36,440 $8,591,493 $236 57% Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 3e for related data. Top 10 Independents Origination Volume Rank Year1 Primary Name2 # $ (000s) Avg ($, 000s) Refi Share 1 2014 QUICKEN LOANS 283,061 $55,816,267 $197 82% 2 2014 LOANDEPOT.COM, LLC 58,183 $13,056,617 $224 67% 3 2014 STEARNS LENDING 46,416 $12,155,253 $262 38% 4 2014 FREEDOM MORTGAGE CORPORATION 57,535 $11,602,219 $202 81% 5 2014 NATIONSTAR MORTGAGE LLC 61,377 $10,930,968 $178 9 6 2014 GUARANTEED RATE INC 36,984 $9,774,871 $264 28% 7 2014 UNITED SHORE FINANCIAL SERVICE 37,472 $8,770,580 $234 43% 8 2014 CALIBER HOME LOANS 34,917 $8,214,126 $235 2 9 2014 GUILD MORTGAGE COMPANY, LLC 34,873 $7,328,029 $210 16% 10 2014 STONEGATE MORTGAGE CORPORATION 30,365 $6,860,493 $226 3 Top 10 Credit Unions Origination Volume Rank Year1 Primary Name2 # $ (000s) Avg ($, 000s) Refi Share 1 2014 KINECTA FEDERAL CREDIT UNION 4,959 $2,034,289 $410 4 2 2014 LAKE MICHIGAN CREDIT UNION 7,241 $1,318,769 $182 2 3 2014 FIRST TECHNOLOGY FEDERAL CU 3,752 $1,317,893 $351 36% 4 2014 ALASKA USA FCU 4,282 $1,014,690 $237 26% 5 2014 ALLIANT CREDIT UNION 1,909 $938,391 $492 31% 6 2014 COMMUNITYAMERICA CREDIT UNION 5,321 $881,568 $166 3 7 2014 SAN DIEGO COUNTY CREDIT UNION 2,169 $790,719 $365 7 8 2014 LOGIX FEDERAL CREDIT UNION 1,982 $642,366 $324 73% 9 2014 SCHOOLSFIRST FCU 1,867 $593,594 $318 62% 10 2014 PATELCO CREDIT UNION 1,403 $562,367 $401 7 Navy Federal and Pentagon Federal Credit Union are classified as Depository by the FFIEC in the raw data but would be 1st and 2nd on the Top 10 Credit Union list, originating $8,080,846,000 and $2,260,087,000 loans in 2014, respectively. NFCU ranks 14 on top depositories list, while Pentagon Fed. Ranks 39. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 9

Originations by Loan-Size Tranche 2014 All Loans: Distribution of Originations by Size Tranche (#) 2014 Home Purchase: Originations Distribution by Loan Type & Size Bucket 2 4 3 2 1 1 1 1 <=$50K >$50K & <= >$100K & <= >$150K & <= >$200K & <= >$271.05K & <= >$400K & <= >$417K & <= >$600K & <= >$625.5K & <= >$729.75K <=$50K >$50K & <= $100K >$100K & <= $150K >$150K & <= $200K >$200K & <= $271.05K >$271.05K & <= $400K >$400K & <= $417K >$417K & <= $600K >$600K $100K $150K $200K $271.05K $400K $417K Total Home Purchase Refinancing $600K $625.5K $729.75K Conventional Non-Jumbo Loans /FSA/RHS Loans VA Loans 91% of all loan originations in 2014 were for loans less than $417,000 (91% purchase and 92% refi). 4 3 2014 Refinancing: Originations Distribution by Loan Type & Size Bucket 2 98% of purchase and 91% of refi for /FSA/RHS loans have balances less than $271,050. 1 1 <=$50K >$50K & <= $100K >$100K & <= $150K >$150K & <= $200K >$200K & <= $271.05K >$271.05K & <= >$400K & <= $400K $417K >$417K & <= $600K >$600K Conventional Non-Jumbo Loans /FSA/RHS Loans VA Loans Conventional Jumbo Loans were intentionally excluded from these graphs so as not to skew the distributions. Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 4a and 4a2013 for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 10

Government Lending by Loan-Size Tranche 4 3 2 1 1 Distribution of Loan Types by Loan Size Tranche The share of loans with a balance less than or equal to $271,050 (the national maximum loan limit) as a percent of originations was: 7 overall 88% for 71% for VA 97% for All Loans Loans VA Loans /FSA/RHS Loans 4 Loans: Distribution of Originations by Size Tranche (#) 4 VA Loans: Distribution of Originations by Size Tranche (#) Loans: Distribution of Originations by Size Tranche (#) 3 3 4 3 2 2 2 1 1 1 1 1 1 Home Purchase Refinancing Home Purchase Refinancing Home Purchase Refinancing Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 4b for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 11

Sustained Growth in Jumbo Market Annual HMDA Data Home Purchase: Year-Over-Year Change in Residential Origination Volume by Loan Size Bucket -58% -48% -5-4 -41% -2-22% -26% -23% -2 - -28% -23% -9% -9% -3% - -2% - -9% -6% -2% -8% -9% -3% -6% -1% 6% 3% 6% 13% 22% 18% 18% 28% 26% 19% 37% 4 41% 2007 2008 2009 2010 2011 2012 2013 2014 <=$150K >$150K & <=$350K >$350K & <=$417K >$417K & <=$625.5K >$625.5K & <=$729.75K >$729.75K Home-purchase loans with balances greater than $417,000 have seen consistent year-over-year increases in number of originations. The greater-than-$729,000 bucket is the only tranche that has seen four consecutive years of growth (on loan-count basis). Note: Please see Methodology (page 23) for specific data exclusions. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 12

Impact on Entry-Level Buyers 60. By Loan Type: Year-Over-Year % Change in Purchase Origination Volume (#) 40. 20. 0. -80. -50. -20. -76. -40. -60. -80. <=$50K >$50K & <= $100K >$100K & <= $150K >$150K & <= $200K >$200K & <= $271.05K >$271.05K & <= $400K >$400K & <= $417K >$417K & <= $600K >$600K & <= $625.5K >$625.5K & <= $729.75K >$729.75K Conventional Loans Originations VA EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 13

Loan Origination by Race / Ethnicity 9 8 7 6 6 Home Purchase: Distribution by Race/Ethnicity and Loan Type 77% 53% 6 9 8 7 6 8 Refinance: Distribution by Race/Ethnicity and Loan Type 62% 78% 8 69% 7 7 5 4 36% 4 41% 41% 47% 33% 5 4 1 16% White 18% 9% 9% 1% 2% Black or African American Hispanic or Latino 1 1 Asian 3% 13% 2 2% 3% 16% 9% 1 2% American Indian Native Hawaiian Information Not or Alaska Native or Other Pacific Provided Islander Conventional Non-Jumbo Conventional Jumbo Loan /FSA/RHS VA 1 17% 16% 13% 1 7% 8% 8% 8% 9% 8% 1% 2% 2% 3% White Black or African American Hispanic or Latino Asian American Indian Native Hawaiian or Alaska Native or Other Pacific Islander Information Not Provided Conventional Non-Jumbo Conventional Jumbo Loan /FSA/RHS VA More than 4 of home-purchase loans to Black / African-American and Hispanic borrowers are originations while the bulk of refinance transactions are financed using a Conventional Non-Jumbo loan. Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 4c, 4c2012, 4d and 4e for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 14

By Race / Ethnicity and Company Type Distribution of Originations by Race/Ethnicity 9% White 6% Black or African American Hispanic or Latino 9% 71% of all loans in 2014 were made to White borrowers. Asian American Indian or Alaska Native The share of Hispanic borrowers was 9%. Native Hawaiian or Other Pacific Islander 71% Information not provided by applicant in mail, Internet, or telephone application Refinancing: Distribution of Originating Institution Type by Race/Ethnicity Home Purchase: Distribution of Originating Institution Type by Race/Ethnicity 6 7 5 6 5 4 4 1 1 White Black or African American Hispanic or Latino Asian American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Information Not Provided White Black or African American Hispanic or Latino Asian American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Information Not Provided Depository Non-Depository Credit Union Depository Non-Depository Credit Union Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 4d for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 15

Trends in Loan Decisions 2014 Denial Rates by Loan Purpose and Type 2013 Denial Rates by Loan Purpose and Type 4 4 4 4 3 37% 4 3 2 19% 31% 2 29% 28% 18% 31% 2 2 2 23% 2 26% 23% 23% 23% 23% 23% 1 13% 1 13% 1 1 Conventional Non-Jumbo Conventional Jumbo Loan VA /FSA/RHS Conventional Non-Jumbo Conventional Jumbo Loan VA /FSA/RHS - Home Purchase Refinancing Total Home Purchase Refinancing Total Total denial rates were up in 2014. loans had highest denial rates for refi loans. 2014 Denial Rate 2013 Denial Rate Home Purchase 19% Refinancing 32% 2 Total 2 23% Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 5a for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 16

Denial Reasons by Loan Type Home Purchase: Distribution of Denial Reason by Loan Type Refinancing: Distribution of Denial Reason by Loan Type 4 4 4 3 3 2 2 1 1 1 1 Collateral Credit application incomplete Credit history Debt-to-income ratio Employment history Insufficient cash (downpayment, closing costs) Mortgage insurance denied Other Unverifiable information Collateral Credit application incomplete Credit history Debt-to-income ratio Employment history Insufficient cash (downpayment, closing costs) Mortgage insurance denied Other Unverifiable information Conventional (any loan other than, VA, FSA, or RHS loans) -insured (Federal Housing Administration) FSA/RHS (Farm Service Agency or Rural Housing Service) Conventional Jumbo Loan VA-guaranteed (Veterans Administration) Conventional (any loan other than, VA, FSA, or RHS loans) -insured (Federal Housing Administration) FSA/RHS (Farm Service Agency or Rural Housing Service) Conventional Jumbo Loan VA-guaranteed (Veterans Administration) Credit history and debt-to-income ratio were the top reasons for home-purchase application denial (accounting for 57% of all denied home purchase apps), followed by collateral issues which accounted for 13% of denied home purchase apps. Similarly, credit history and debt-to-income ratio were still among the top reasons for refi denials (each accounting for about 23% of refi denials), followed by collateral issues (accounting for 22% of refi denials). Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 5a for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 17

and Conventional: By Race / Ethnicity Home Purchase: Conventional and Loans by Race/Ethnicity Refinancing: Conventional and Loans by Race/Ethnicity 8 76% 7 8 7 72% 7 7 66% 63% 63% 6 6 6 5 5 4 4 17% 19% 1 2% 6% 8% 1 8% 7% 7% 8% 6% 3% 3% 3% 1% 1% Conventional Non-Jumbo Conventional Non-Jumbo 6% 1 6% 6% 1 1 1 9% 8% 2% 2% 1% Conventional Non-Jumbo Conventional Non-Jumbo Home Purchase Home Purchase Home Purchase Home Purchase Refinancing Refinancing Refinancing Refinancing 2013 2013 2014 2014 2013 2013 2014 2014 White Black or African American Hispanic or Latino Asian American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Information Not Provided White Black or African American Hispanic or Latino Asian American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Information Not Provided home-purchase loans have a higher share of loans made to minority borrowers (as a % of total production) than Conventional Non-Jumbo loans. Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 4c and 4c2012 for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 18

: Originations by Applicant Income US - Total Originations (as % of Annual #) by Applicant Income Bucket 4 42% US - Originations (as % of Annual #) by Applicant Income Bucket 4 Origination Volume (as a % of Total Annual Originations) 2 1 1 2 23% 23% 22% 22% 19% 18% 17% 16% 16% 19% 19% 18% 18% 16% 16% 16% 16% 16% 16% 16% 13% 9% 1 1 1 1 1 9% 9% 9% 8% 8% 7% 7% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Origination Volume (as a % of Total Annual Originations) 37% 3 33% 31% 31% 31% 31% 29% 29% 28% 26% 2 2 2 2 2 2 23% 22% 17% 17% 16% 1 1 1 1 1 1 13% 1 1 1 7% 7% 7% 7% 6% 6% 6% 3% 1% 2% 1% 1% 1% 2% 1% 1% 1% 1% 1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 <=$25K >$25K & <=$50K >$50K & <=$75K >$75K & <=$100K <=$25K >$25K & <=$50K >$50K & <=$75K >$75K & <=$100K >$100K & <=$125K >$125K & <=$175K >$175K & <=$250K >$250K >$100K & <=$125K >$125K & <=$175K >$175K & <=$250K >$250K Source: Home Mortgage Disclosure Act (1-4 Unit, First-Lien, Purchase and Refi, Retail/Broker Originations Only) Source: Home Mortgage Disclosure Act (1-4 Unit, First-Lien, Purchase and Refi, Retail/Broker Originations Only) 49% of all loans originated in 2014 went to borrowers with annual income of $75,000 or less (unchanged from 49% in 2013). 6 of borrowers made under $100,000. In contrast, 72% of loan originations in 2014 went to borrowers with annual income of $75,000 or less (compared with 49% for all loans). And a 87% of originations were made to borrowers with annual income of $100,000 or less. 46% of borrowers in 2014 had income of $50,000 or less, which was down from 5 in 2013. Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 9c-ALL and 9C- for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 19

: By Applicant Income (AS % OF AREA MEDIAN INCOME) US - % of Loans Originated: Applicant Income as a % of Area Median Income US - % of Loans: Applicant Income as a % of Area Median Income 7 6 6 5 4 52% 6 51% 49% 48% 52% 51% 49% 52% 5 4 4 4 32% 3 42% 28% 46% 26% 39% 36% 42% 43% 28% 4 1 23% 13% 19% 1 28% 27% 26% 2 2 2 2 13% 13% 13% 13% 13% 1 1 17% 13% 19% 1 17% 13% 16% 1 16% 16% 17% 13% 13% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 1-Applicant Income < 8 of HUD Area Median Income 2-Applicant Income >=80 AND <10 of HUD Area Median Income 3-Applicant Income >=10 AND <1 of HUD Area Median Income 4-Applicant Income >=1 of HUD Area Median Income Source: Home Mortgage Disclosure Act (1-4 Unit, First-Lien, Purchase and Refi, Retail/Broker Originations Only) -1 1-Applicant Income < 8 of HUD Area Median Income 2-Applicant Income >=80 AND <10 of HUD Area Median Income 3-Applicant Income >=10 AND <1 of HUD Area Median Income 4-Applicant Income >=1 of HUD Area Median Income Source: Home Mortgage Disclosure Act (1-4 Unit, First-Lien, Purchase and Refi, Retail/Broker Originations Only) On the whole, 63% of all borrowers had an annual income that was higher than their HUD area median income (52% had incomes that were more than 1 of the area median income), while only 2 of borrowers had income that was less than 8 of the area median income. Although more than half of all borrowers are above the median income line, 43% of borrowers had income above the median income line, and out of that, of loans were to borrowers with income that was more than 1 of the area median income. More than half (or 57%) of borrowers had incomes that were at or below the median income line a majority of these borrowers (or 4) had incomes that were less than 8 of their area median income. Note: Please see Methodology (page 23) for specific data exclusions. Please refer to Executive DataBook reports 10c-ALL and 10C- for related data. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 20

Trends by Race / Ethnicity and Loan Type HMDA Home Purchase Owner-Occupied by Borrower Race and Year Conventional VA RHS Total 2012 53.37% 32.53% 8.83% 5.27% 2,543,343 American Indian or Alaska Native 39.86% 43.06% 11.77% 5.31% 13,463 Asian 77.53% 18.8 2.86% 0.81% 127,682 Black or African-American 24.96% 53.5 16.31% 5.18% 124,609 Hispanic or Latino 32.06% 54.9 8.02% 5.01% 211,354 White 55.47% 29.96% 8.67% 5.9 1,879,102 Information not provided by applicant in mail, Internet or telephone application 60.36% 27.32% 10.07% 2.26% 178,029 Not Applicable 98.0 1.49% 0. 0.3 871 Native Hawaiian or Other Pacific Islander 40.98% 38.43% 15.7 4.83% 8,233 2013 60.6 25.49% 9.0 4.81% 2,911,241 American Indian or Alaska Native 44.56% 38.17% 12.22% 5.0 15,169 Asian 83.39% 13.06% 2.87% 0.68% 158,549 Black or African-American 31.62% 46.37% 17.41% 4.6 134,578 Hispanic or Latino 39.99% 46.89% 8.53% 4.59% 230,901 White 62.42% 23.27% 8.87% 5.4 2,157,723 Information not provided by applicant in mail, Internet or telephone application 68.27% 19.67% 10.23% 1.83% 203,864 Not Applicable 96.37% 3.33% 0.31% 0.0 1,293 Native Hawaiian or Other Pacific Islander 48.69% 30.57% 16.6 4.09% 9,164 2014 61.93% 23.18% 10.18% 4.71% 3,066,446 American Indian or Alaska Native 44.0 37. 14.0 4.6 17,311 Asian 84.36% 11.66% 3.37% 0.62% 159,492 Black or African-American 33.91% 42.9 19.1 4.06% 154,260 Hispanic or Latino 42.7 43.79% 9.3 4. 262,740 White 64.08% 20.62% 9.9 5.39% 2,247,200 Information not provided by applicant in mail, Internet or telephone application 68.17% 17.8 12.17% 1.81% 213,998 Not Applicable 98.5 1.18% 0.18% 0.09% 1,100 Native Hawaiian or Other Pacific Islander 50.8 28.16% 16.79% 4. 10,345 EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 21

2014 Production By the Numbers All Originations Number % Dollar Volume % Average Size Conventional Jumbo Loan 160,647 5.0 $135,532,325,000 18.23% $843,665 Conventional, Non-Jumbo 2,002,190 62.9 $415,488,139,000 55.87% $207,517 For Home Purchase For Refinancing All Loan Purposes 596,214 18.7 $105,692,961,000 14. $177,274 VA 287,808 9.0 $68,519,366,000 9. $238,073 133,739 4. $18,376,848,000 2.47% $137,408 Total 3,180,598 58.66% $743,609,639,000 60. $233,796 Conventional Jumbo Loan 98,773 4.41% $87,996,817,000 17.9 $890,900 Conventional, Non-Jumbo 1,758,881 78.46% $329,499,864,000 67.0 $187,335 182,264 8.13% $28,650,690,000 5.83% $157,193 VA 200,162 8.93% $45,011,630,000 9.16% $224,876 1,817 0.08% $320,090,000 0.07% $176,164 Total 2,241,897 41.3 $491,479,091,000 39.79% $219,225 Conventional Jumbo Loan 259,420 4.78% 223,529,142,000 18.1 $861,650 Conventional, Non-Jumbo 3,761,071 69.36% $744,988,003,000 60.32% $198,079 778,478 14.36% $134,343,651,000 10.88% $172,572 VA 487,970 9.0 $113,530,996,000 9.19% $232,660 135,556 2.5 $18,696,938,000 1.51% $137,928 Total 5,422,495 100.0 $1,235,088,730,000 100.0 $227,771 Note: Please see Methodology (page 23) for specific data exclusions. EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 22

Methodology Origination: Action Type = 1 Retail / Broker Loans with Action = Loan Originated. Does not include correspondent / wholesale originations. Property Type = 1 + 2 Does not include multifamily properties (includes 1-4 unit properties and manufactured homes), 5+ unit dwellings are excluded. Lien Status = 1 Does not include unsecured debt or debt secured by junior liens. Originations secured by a first lien. Loan Purpose = 1 + 3 Does not include home improvement loans. Home purchase and refi only. Denial Rate: Exclusions (in both numerator and denominator): Property Type = 1 + 2 Lien Status = 1 Loan Purpose = 1 + 3 Denial Rate = [App Denied(3)] + [PreApp Denied(7)] [Loan Originated(1)] + [App Denied(3)] + [PreApp Denied(7)] Application: Action Type Codes: Action Type = All Action Codes except 6 Everything except Loan Purchased by Institution [aka Correspondent Originations] Property Type = 1 + 2 Does not include multifamily properties (includes 1-4 unit properties and manufactured homes), 5+ unit dwellings are excluded. Lien Status = 1 Does not include unsecured debt or debt secured by junior liens. Originations secured by a first lien. Loan Purpose = 1 + 3 Does not include home improvement loans. Home purchase and refi only. 1 Loan originated 2 Application approved but not accepted 3 Application denied by financial institution 4 Application withdrawn by applicant 5 File closed for incompleteness 6 Loan purchased by the institution 7 Preapproval request denied by financial institution 8 Preapproval request approved but not accepted (optional reporting) EXECUTIVE DATABOOK: 2014 ORIGINATION TRENDs PAGE 23