1 Mortgage Bankers AssociationConsumer Federation of America 25th Annual Financial Services Conference David H. Stevens President & CEO Mortgage Bankers Association Friday, November 30, 2012

2 Housing Affordability Today

3 Purchase Apps Have Been Slow to RecoverMortgage Bankers Association 12/8/2017 Purchase Apps Have Been Slow to Recover BRZ: Changed Y1 from: “Existing Home Sales (Thousands, SAAR)”  “Home Sales (Thousands)”. Changed Y2 from “MBA Purchase Index (Index 16mar1990=100,SA)” “MBA SA Purchase Index”. Upped font size on both Axes, upped font size on legend. Changed colors on Axis Labels to Match respective lines. Upped font size of dates along X-Axis. Sources: MBA, NAR Mortgage Bankers Association

4 Where We’ve Been

5 Mass Scale Litigation

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

7 - National Economic Council – Jim Parrot“ How do you correct for what happened, but not do so in away that we’re stuck where we are today – where there’s not enough liquidity? We clearly haven’t threaded that needle yet.” - National Economic Council – Jim Parrot

8 Consumer is impacted

9 Lenders Exiting the MarketSource: FFIEC

10 Productivity Down: Costs to Consumers Retail Apps per Underwriter per MonthSource: MBA/STRATMOR Peer Group Survey

11 Tight Credit Box at GSEs…Limits AccessSource: Fannie Mae 10-K and Credit Supplement Reports

12 And FHA Source: FHA Monthly Outlook Reports

13 Balancing EnforcementConsumer Protections Access to Credit

14 - Federal Reserve Chairman Ben Bernanke“ The pendulum has swung too far the other way…overly tight lending standards may now be preventing creditworthy borrowers from buying homes.” - Federal Reserve Chairman Ben Bernanke

15 Rates

16 Home Price Appreciation Trending UpSource: FHFA, Case Shiller, Corelogic

17 Household formation on rise again

18 ECHO BOOM – Fuel for Future

19 Partnership Clear Rules and Standards to Protect All Consumers LendersInvestors Environment that will attract vs. repel lending