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In the Eye of the Storm: Saving Homes Between the Last Foreclosure Crisis and the Next One

Mortgage Conference, , IN, 2018

2017 Foreclosure Activity Hot Spots

Percent Change from 2016 -58% 19%

Foreclosure Activity Type Repossession (REO) Foreclosure Starts Scheduled Foreclosure Auctions 2017 Foreclosure Activity Hot Spots

Percent Change from 2016 -54% 54%

Foreclosure Activity Type Bank Repossession (REO) Foreclosure Starts Scheduled Foreclosure Auctions

Median Annual Income 2016 (adjusted for inflaon)

1999 $56,080 +$137

$56,217

U.S. Census Bureau, American Community Survey Briefs: 2016 (G. Guzman, Sept. 2017) Student Loans Owned and Securitized, Outstanding

1,500

1,400

1,300

1,200 s

r 1,100 a l l o

D 1,000 f o s

n 900 o i l l i

B 800

700

600

500

400 2006-01-01 2007-01-01 2008-01-01 2009-01-01 2010-01-01 2011-01-01 2012-01-01 2013-01-01 2014-01-01 2015-01-01 2016-01-01 2017-01-01

Source: Board of Governors of the System (US) fred.stlouisfed.org myf.red/g/eKr3

Cost Burdened Renters -2016

Source: Joint Center for housing Studies of Harvard University Mortgage Originaon $10,646,138,000,000

$10.6 trillion One-to-four family mortgage debt outstanding as of 1Q2018. Mortgage debt peaked in 1Q2008 at $11.3 trillion

$200 $0

Top Mortgage Originators of 2006

2006 Company 2006 Funded 2006 Where Are They Now? Rank Mortgage Market Loans ($B) Share (%) 1 Countrywide Home Loans 175.3 6.74 Bought by in 2008 2 Bank NA 164.5 6.33 Acquired in 2008 3 Bank 106.2 4.09 Acquired Countrywide Financial in 2008 4 Bank of America NA 88.9 3.42 Failed and acquired by JPMorgan Chase in 2008 5 JPMorgan NA 68.7 2.64 Acquired Washington Mutual in 2008 6 Natuional City Bank 63.6 2.45 Sold to PNC in 2008 7 American Home Mortgage Inc 54.7 2.1 Filed for bankruptcy in 2007 8 SunTrust Mortgage Inc. 45 1.73 Remains in mortgage business 9 Wachovia Mortgage Corp. 43.5 1.67 Sold to Wells Fargon in 2008 10 New Century Mortgage Corp 42 1.61 Filed for bankcruptcy in 2007 11 IndyMac Bank FSD 39.3 1.51 Failed in 2008 12 Countrywide Bank FSB 36.4 1.4 Acquired by bank of America in 2008 13 CiMortgage Inc. 35.2 1.35 Remains in mortgage business Sold most banking assets and all deposits to CapitalSource 14 Fremont Investment & Loan 32.5 1.25 Inc in 2008 15 GreenPoint Mortgage Funding Inc 30.8 1.19 Shut down by parent Capital One Financial in 2007 16 WMC Mortgage Corp. 29.1 1.12 Shut down and sold by parent General Electric in 2007 Parent GMAC Financial Services ceased originaons in 17 HomeComings Financial Network 28.3 1.09 2008 Parent First Horizon sold all non- loan operaons 18 First Horizon Home Loans 28.1 1.08 to MetLife. MetLife is now exing the the business Parent H&R Block ceased Opon One's loan originaons in 19 Opon One Mortgage Corp 25.4 0.98 2007 20 First Magnus Finacial Corp 24.9 0.96 Filed for bankruptcy in 2007

Total 2006 Mortgage originaons in US 2599.4

Source: SNL Financial Top Mortgage Originators of 2016-2017 ($B)

Lender 2017 2016 U.S. Total 1873.8 2111.9

Wells Fargo 212 249 Chase 107.6 117.4 Quicken 86.4 96 PennyMac 68.4 69.7 BofA 67.5 79.4 U.S. Bank 67 78.7 Freedom 51.1 53.2 Caliber 43.7 40.3 LoanDepot 35.2 38.2 Flagstar 34.7 32.5

Refinance declines Rate refis decline; Cash out refis; Delinquent loan refis; High LTV refis HELOCs Up Digizaon of Mortgage Process Product Innovaon Deregulaon GSE Risk Transfers Mortgage Servicing TOP SERVICERS 2007 2007 Loans 2007 Rank Company Serviced 2007 Market ($B) Share (%) 1 Bank of America/Countrywide 1993 18 2 Wells Fargo Bank NA 1473 13 3 CiMortgage, Inc. 838 8 4 Chase Home Finance 776 7 5 Washington Mutual 623 6 6 Residenal Capital, LLC 410 4 7 IndyMac 198 2 8 HSBC North America 161 1 9 Aurura Loan Services (Lehman) 113 1 10 EMC Mortgage Corp () 89 1 11 Merrill Lynch B&T FSB 65 1 12 Ocwen Financial Corp. 53 < 1 13 Opon One Mortgage 48 < 1 14 Home Eq Servicing Corp 47 < 1 15 Lion Loan Servicing 46 < 1 16 Saxon Mortgage 37 < 1 17 American Home Mortg. Corp. 30 < 1 18 Select Porolio Servicing 29 < 1

Total 2007 Mortgages Serviced by top 18 7029 63% TOP SERVICERS 2017 ($B) 1 Wells Fargo & Co. 1551 2 JP Morgan Chase & Co. 816.1 3 Naonstar Mortgage Holdings, LLC 518.1 4 Bank of America Corp. 517.6 5 U.S. Bancorp. 310.8 6 Quicken Loans, Inc. 279.1 7 Ocwen Financial Corp. 177.3 8 PNC Financial Services Group Inc 172.6 9 PennyMac Financial Services, Inc. 166.2 10 SunTrust Inc 165.4 11 Cigroup 123.6 12 Freedom Mortgage Corp. 123.2 13 Caliber Home Loans, Inc. 121.3 14 BB&T Corp. 114.4 15 Walter Investment Management Corp 82.6 16 RoundPoint Mortgage Servicing 75 17 Navy Federal Credit Union 60.5 18 Regions Financial Corp 56.8

5431.6

Servicer Shuffle Workforce reducons/offshoring Loss migaon Regulatory Environment