Corporation Retirement & Independent Entities Interim Committee Grant Whitaker, President & CEO November 26, 2018

MISSION STATEMENT: SERVING UTAH’S HOUSING NEEDS THROUGH FINANCE AND INNOVATION

1 UHC Corporate Governance

2 Board of Trustees

There are nine trustees of UHC; eight are appointed by the Governor and one is an elected officer of the State. Three trustees serve ex officio; six are public trustees. Any public trustee shall be eligible for reappointment, but may not serve more than two full consecutive terms. Of the six public trustees, two trustees are appointed to represent the mortgage lending industry, two to represent the home building and real estate industry and two to represent the public at large. No more than three of the six public trustees of UHC may belong to the same political party. Each of the public trustees is appointed from and must reside in a different county. Unless a public trustee vacates his or her position for any reason, each trustee shall hold office until his or her successor shall have been appointed. Five trustees of UHC constitute a quorum for transaction of business. An affirmative vote of at least five trustees is necessary for any action to be taken by UHC. A vacancy in the board of trustees may not impair the right of a quorum to exercise all rights and perform all duties of UHC. The Act provides that the Chair of UHC shall be appointed by the Governor.

Lerron E. Little Robert P. Majka G. Edward Leary David C. Damschen Jon Pierpont Cathy G. Burrows Mark B. Cohen Brett Mills Patricia Sheffield Chair Vice Chair

3 Lerron E. Little (Chair) -- Broker/Owner, Capstone Real Estate; Former Manager, Broker, Robert P. Majka (Vice Chair) – Retired; Chair, Utah Capital Investment Board; Former President Realtor, NorthStar Real Estate; Former Project Sales Agent, Realtor, Aspen Real Estate; & CEO, Marlin Business Bank; Former President, Associates Bank and Executive Vice President Former Life Insurance Sales, American Income Life Insurance; Former President, Utah County Associates Finance Corp; Former Vice President, Crocker National Bank; Credit Supervisor, Association of Realtors; Former Vice President, Utah Association of Realtors; Commissioner, Diners Club; BS, Political Science, Bowling Green State University. (First term commenced June Utah Real Estate Commission; B.A., Brigham Young University. (First term commenced June 17, 2015; expires May 30, 2019.) 19, 2013; expires May 30, 2017.)

G. Edward Leary – (Ex Officio); Commissioner, Utah Department of Financial Institutions; David C. Damschen, CTP – (Ex Officio); Utah State Treasurer; Former Chief Deputy State Treasurer, Chairman, Board of Financial Institutions; Past Chairman, Conference of State Bank Supervisors, State of Utah; Former Director and Senior Vice President of Treasury Management, AmericanWest the National Association of State Banking Supervisors; Former Chairman of the Federal Bank; Former Vice President and Relationship Manager, U.S. Bank Institutional Trust and Custody; Financial Institutions Examination Council’s (FFIEC) State Liaison Committee. Former Chief B.A., University of Washington. (Term commenced November 2, 2015.) Examiner, Utah Department of Financial Institutions; Captain, U.S. Naval Reserve (ret.); B.S. and M.B.A., University of Utah. (Term commenced June 17, 1992.)

Jon Pierpont – (Ex Officio); Executive Director, Utah Department of Workforce Services; former Cathy G. Burrows – Mortgage Origination Manager, America First Federal Credit Union; Former Deputy Director and former Eligibility Services Division Director, Utah Department of Workforce Mortgage Loan Originator, Processor, Sr. Loan Closer, Loan Shipping Coordinator and Audit Services; Member, Utah State Homeless Coordinating Committee; Chairman, Utah Refugee Advisory Coordinator, Crossland Mortgage Corporation; Former Mortgage Loan Shipping Coordinator and Board. B.S., University of Utah. (Term commenced September 4, 2012.) Accounts Payable Coordinator, Western Mortgage Loan Corporation/Western Real Estate & Development; Former Assistant to Project Superintendent, Office Manager, Terra Firma , Inc. (First term commenced June 17, 2015; expires May 30, 2019.)

Mark B. Cohen – Partner, Imagine Development Company; Partner, PSC Development Company; Brett Mills – District Manager/Senior Loan Officer, Academy Mortgage Corporation; Partner, Evergreene Management Group; Former Member, Board of Directors and Former President/Manager, Hill Field Executive Suites, LLC and Hillfield Holdings, LLC; Public Executive Director, Utah Center for ; Former Member, Board of Directors, Speaker/Consultant, Brett Mills Consulting; President/CFO, BC Strategies, LLC.; Former Loan Officer, Housing Plus; President, Willow Creek Country Club; B.S., University of Michigan. (Second term Legacy Mortgage Group, LLC. BA, Idaho State University. MBA, University of Phoenix; CMB, School commenced June 17, 2015; expires May 30, 2019.) of Mortgage Banking. (First term commenced May 17, 2017; expires May 30, 2021.)

Patricia Sheffield – Retired; Former Director, Washington County Children’s Justice Center; Former Prevention Specialist, Southwest Center Mental Health, Substance Abuse and Prevention Services; Former Member, Attorney General’s Safety Net Committee; Former Member, Utah Council on Victim of Crime; Former Member, Quality Improvement Committee, Utah Division of Child and Family Services. B.S and M.S., University of Utah. (First term commenced May 17, 2017; expires May 30, 2021.)

4 Officers The President of UHC is appointed by the trustees of UHC. The President of UHC is the chief executive officer and the secretary-treasurer, but not a trustee of UHC. All other officers are appointed by the President.

Grant S. Whitaker – President and CEO; former Senior Vice President, Deputy Director, Acting Executive Director, Assistant Executive Director and Multifamily Program Officer, Utah Housing Corporation, 1979-2009; former Assistant Division Director/Senior Loan Officer, Housing Authority of Salt Lake County; Immediate Past President, Board of Directors, National Council of State Housing Agencies; Member, Utah Private Activity Bond Board; Member, Board of Governors, Salt Lake Chamber of Commerce; Member, Board of Directors, Community Development Finance Alliance; Former Member and Past Chair, Board of Trustees, Utah Community Reinvestment Corporation. B.S., University of Utah. (Appointment commenced January 16,2009.)

Cleon P. Butterfield, CPA – Senior Vice President and CFO, 2001 to present; former Treasurer, Director of Operations, Director of Program Development, and Financial Officer, Utah Housing Corporation, 1979-2001; Chair, Affordable Housing Advisory Council, Federal Home Loan Bank of Des Moines; Member, Advisory Board, School of Accounting, University of Utah. B.S., Brigham Young University; M.B.A., University of Utah.

Jonathan A. Hanks – Senior Vice President and COO, 2009 to present; former Vice President of Multifamily Finance, and Vice President of Mortgage Servicing, Utah Housing Corporation, 1995-2008; former Assistant Executive Director, NeighborWorks Salt Lake, 1994-1995; Member, Board of Directors, Utah Center for Affordable Housing; Member, State Homeless Coordinating Committee; Former Member and President, Board of Directors, Wasatch Peak Academy. B.A., University of Utah; M.B.A., University of Phoenix.

5 Utah Housing Staffing

Board of Trustees

President & CEO

Executive Assistant

Sr. VP and COO Sr. VP and CFO VP

Mortgage Information Human Banking Technologies Resources

Financial Administrative Loan Servicing Services Services

Housing Financial Development Analysis

Multifamily Finance

6 Who are the people Utah Housing helps?

•Home Ownership: Over 90,000 mostly first time low/moderate income home buyers have had their mortgages funded by Utah Housing as we purchase the loans from nearly 250 lending institutions. We service all our loans, and maintain lower delinquency and foreclosure rates than most other servicers. • FirstHome Loans offer a fixed rate 30 year amortizing, FHA insured (prime) mortgage loan at rates that are competitive with market rate loans. We also offer assistance to those who have not been able to save enough for their required down payment with a 30-year fixed-rate second mortgage loan in an amount of up to six percent of the first mortgage amount. The second mortgage rate is 2% higher than the first mortgage rate. • The HomeAgain Loan Program offers the same type of financing to those who have previously owned a home. An example of who needs HomeAgain is a current owner who has enough equity to sell his first home, but not enough equity to qualify to buy a needed larger home for the growing family. • The Score Loan Program is perfect for a first time home buyer who has not yet established stellar credit. We offer similar financing, and with appropriate underwriting and risk adjustments, we avoid poor quality loans and related losses. • The NoMI Loan Program offers the lowest monthly payment of all our loan programs. This is accomplished by having no premiums for mortgage insurance. High credit scores (700 or above) plus tougher underwriting standards and lower down payment assistance are the characteristics of these loans.

7 • Rental Housing: Using the Low Income Housing Tax Credit (LIHTC) program and bond financing, Utah Housing has financed almost 30,000 units of affordable rental housing scattered throughout the state. The projects are owned by private and non-profit owners, and consist of newly constructed buildings or renovated older . The average income of tenants in these affordable projects is about 42% of the Area Median Income (AMI). Many of the projects are targeted to serve the local low-wage work-force or seniors on fixed incomes. Several tenant profiles are included in the accompanying information. The LIHTC program has been the least costly and most effective rental subsidy program ever offered by the Federal government. The tax credit ends after 10 years, while the projects are deed restricted to provide affordable housing to low income tenants for no less than 50 years. • Economic Benefits: According to the University of Utah's Kem C. Gardner Policy Institute (GPI) 24 FTE are created (direct and indirect) for each $1,000,000 of construction costs. Each year our programs contribute to hundreds of jobs. GPI also estimates that income, sales and other local and state taxes are raised at an annual rate of 12.7% for each $1,000,000 of construction costs. Additional property tax revenues at 1% are created. The Home Builders Association estimates that 15-18% of the Nation's Gross Domestic Product comes from housing and real estate. Residential sales and construction are truly America's economic engine. • Community Reinvestment Act (CRA): Financial institutions subject to CRA are some of the biggest supporters of Utah Housing's programs. Utah is fortunate to have many small and large Industrial Banks that do not make mortgage loans but find that their investment in Utah Housing's financial products enable them to meet CRA requirements, receive reasonable return with very little risk, while providing lower income Utahns decent housing they can afford.

8 9 Single Family Home Ownership Program

10 UHC Loan Program Monthly Payment Comparison

FirstHome HomeAgain Score NoMI Conventional FHA Mortgage FHA Mortgage FHA Mortgage Mortgage (97% LTV) 660+ Credit Score 660+ Credit Score 620-659 Credit Score 700+ Credit Score

Sales Price (example) $196,800 $ 196,800 $ 196,800 $ 196,800 Base First Mortgage (FHA 96.5% LTV) $189,912 $189,912 $189,912 $190,896 MI Premium- Up-front MIP 1.75% 1.75% 1.75% 0 MI Premium- Annual % 0.85% 0.85% 0.85% 0

Gross First Mortgage (includes Up front MIP) $193,235 $193,235 $193,235 $190,896 Note Rate 5.150% 5.500% 5.875% 5.875% Monthly P&I Payment $1,055.12 $1,097.17 $1,143.06 $1,129.22 Monthly MI Payment $136.88 $136.88 $136.88 $0.00 Total monthly payment (does not included monthly property tax or hazard insurance) $1,191.99 $1,234.04 $1,279.94 $1,129.22 Amount required for downpayment $6,888 $6,888 $6,888 $5,727 Production percentage (since 08/01/2013) 39% 35% 11% 14% DPA 6% 6% 4% 5% Capital funding sources 1, 2, 3 or 4 1, 3, or 4 1, 3, or 4 5

Sources of Capital: 1 GNMA MBS 2 GNMA Tax-exempt MBS 3 Industrial Bank Participation Pools (CRA)

4 Taxable Bonds As of 14November2018 5 Fannie Mae

11 UHC Down Payment Assistance

2nd Mortgages Funded

$56,816,892 $52,440,888

$39,817,425

$26,844,228

FY 2014-15 FY2015-16 FY2016-17 FY2017-18 • 2nd Mortgage Loans • 30-year Amortization • Fixed Rate 2% higher than corresponding 1st mortgage loan rate

12 Utah Housing Veteran First-time Homebuyer Grant Data as of October 2018 in behalf of Utah Department of Veterans & Military Affairs

Lender Totals Grants Remaining as of 11/02/2018 American Pacific Mortgage 16 14.55% Citywide Home Loans 15 13.64% 71 177,500.00 Academy Mortgage Corp. 13 11.82% Graystone Mortgage 5 4.55% Grant Reservations 11/2/2018 111 Statistical Analysis Quicken Loans 5 4.55% Veterans United Home Loans 5 4.55% Open/ Pending Reservations 13 Average Sales Price 274,660.23 Momentum Home Loans 4 3.64% Aug. Wired 26 Average Income 62,562.18 USAA 4 3.64% Sep. Wired 35 Veritas Funding 4 3.64% Oct. Wired 30 First Colony Mortgage 3 2.73% Nov. Wired 6 Top 3 Lenders Intercap Lending 3 2.73% Grants canceled 1 American Pacific Mortgage 16 14.55% RanLIfe 3 2.73% Citywide Home Loans 15 13.64% United Wholesale Mortgage 3 2.73% Academy Mortgage Corp. 13 11.82% County Percentages Utah Mortgage Loan Corp. 3 2.73% Information only on complte/wired grant fundings Caliber Home Loans 2 1.82% Salt Lake 18 18.56% Loan Type Percentages Usage for Grant New American Funding 2 1.82% Utah 10 10.31% VA 103 93.64% Down Payment 24 21.82% Stearns Lending LLC 2 1.82% Davis 37 38.14% FHA 5 4.55% Closing Costs 72 65.45% ALV Mortgage 1 0.91% Weber 23 23.71% Conventional 2 1.82% Other 14 12.73% Amwest Funding Corp 1 0.91% Cache 2 2.06% 110 100.00% 110 100.00% Bank of Utah 1 0.91% Tooele 4 4.12% Beam Lending 1 0.91% Box Elder 2 2.06% Bank 1 0.91% Juab 1 1.03% Castle & Cooke 1 0.91% 97 100.00% Central Financial Group 1 0.91% CFG Home Loans 1 0.91% Chase Bank 1 0.91% Referral Marketing Fairway Independent Mortgage 1 0.91% Friend 16 14.55% Home Direct Mortgage 1 0.91% Lender 53 48.18% Mid America Mortgage INC 1 0.91% Other 25 22.73% Navy Federal CU 1 0.91% UDVMA 13 11.82% Security Home Mortgage 1 0.91% Marketing Material 3 2.73% SecurityNational 1 0.91% 110 100.00% SWBC 1 0.91% Synergy One Lending 1 0.91% Trident Home Loans 1 0.91% 110 100.00%

13 Single Family Loan Production

Capital Sources

14 Utah Housing Single Family Loan Volume FY 1977-2018 $1,200,000,000 $1,152,310,060 $1,100,000,000 $1,042,942,136 $1,000,000,000

$900,000,000

$800,000,000

$700,000,000

$600,000,000

$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

$0

15 The FOUNDATION that Supports the Housing Market Utah Housing Funded 9.98% (#) all Utah Mortgage Loans in 2017

100%

90% Other 80% UHC 70%

60%

50%

40%

30%

20%

10% CoreLogic Data 0%

16 County Distribution of UHC Single Family Loans 2018 % of FY 2018 FY 2018 77-18 77-18 Loan County Population* Population Loans Distribution Loans Distribution Beaver 6,386 0.21% 3 0.06% 53 0.06% Box Elder 54,079 1.74% 79 1.61% 1,412 1.55% Cache 124,438 4.01% 142 2.90% 3,476 3.82% Carbon 20,295 0.65% 23 0.47% 662 0.73% Daggett 1,029 0.03% 0 0.00% 3 0.00% Davis 347,637 11.21% 571 11.66% 12,217 13.44% Duchesne 20,026 0.65% 22 0.45% 688 0.76% Emery 10,077 0.32% 16 0.33% 245 0.27% Garfield 5,078 0.16% 5 0.10% 62 0.07% Grand 9,674 0.31% 0 0.00% 49 0.05% Iron 51,001 1.64% 53 1.08% 696 0.77% Juab 11,250 0.36% 16 0.33% 252 0.28% Kane 7,567 0.24% 12 0.24% 129 0.14% Millard 12,863 0.41% 11 0.22% 168 0.18% Morgan 11,873 0.38% 0 0.00% 86 0.09% Piute 1,420 0.05% 0 0.00% 8 0.01% Rich 2,391 0.08% 1 0.02% 31 0.03% Salt Lake 1,135,649 36.61% 1,631 33.30% 35,366 38.91% San Juan 15,356 0.50% 4 0.08% 55 0.06% Sanpete 30,035 0.97% 29 0.59% 400 0.44% Sevier 21,316 0.69% 12 0.24% 293 0.32% Summit 41,106 1.33% 7 0.14% 93 0.10% Tooele 67,456 2.17% 236 4.82% 1,849 2.03% Uintah 35,150 1.13% 75 1.53% 777 0.85% Utah 606,425 19.55% 850 17.35% 15,535 17.09% Wasatch 32,106 1.04% 19 0.39% 211 0.23% Washington 165,662 5.34% 208 4.25% 2,029 2.23% Wayne 2,719 0.09% 0 0.00% 15 0.02% Weber 251,769 8.12% 873 17.82% 14,034 15.44% *Population found at Total 3,101,833 100.00 4,898 100.00 90,894 100.00 http://worldpopulationreview.com/us-counties/ut/

17 Utah

18 Mortgage Loan Servicing

19 Utah FHA Mortgages Serviced as of September 30, 2018 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000

Number of Utah Loans Serviced Loans Utah of Number 4000 3000 2000 1000 0 UTAH HOUSING CORPORATION HOUSING UTAH NA BANK FARGO WELLS LLC SERVICES LOAN PENNYMAC CORPORATION MORTGAGE FREEDOM LLC LOANCARE BANK SAVINGS FEDERAL CENLAR LLC MORTGAGE NATIONSTAR US BANK NA BANK T M AND LLC SERVICES MORTGAGE CARRINGTON INC LOANS HOME CALIBER NA BANK CHASE JPMORGAN FSB BANK FLAGSTAR LLC FINANCIAL DITECH INC LOANS QUICKEN CHARLOTTE NA AMERICA OF BANK COMPANY MORTGAGE GUILD BANK MIDFIRST LLC FINANCIAL, UNION PACIFIC INC MORTGAGE DOVENMUEHLE LLC SERVICING LOAN OCWEN INC SOURCE MONEY THE BRANCH BANKING AND TRUST CO FINANCIAL LLC NEW PENN BANK SUNTRUST ASSOCIATION PNC BANK, NATIONAL CORPORATIO SERVICING MORTGAGE ROUNDPOINT INC SOLUTIONS BROKER LLC LENDING HOME PLANET INC CITIMORTGAGE LP FINANCE SELENE INC CO MORTGAGE SUN WEST LLC SERVICES MANAGEMENT LOAN RUSHMORE BANK THIRD FIFTH INC. LENDING INTERCAP CORPORATION MORTGAGE PHH NA BANK FINANCIAL MB INC MORTGAGE RESIDENTIAL PRIMARY UNION CREDIT FEDERAL FIRST AMERICA FINANCE MORTGAGE VANDERBILT

20 HUD Data: FHA Loan Foreclosure Rates for Utah 09-30-2018

21 Multifamily Rental Housing Program

22 23 24 Percentage of LIHTC Units vs. Percentage of State Population

25 26