Midnight in CU Mortgage Lending (Credit Union Conference Presentation Slides)

Midnight in CUMortgage LendingDan Green, EVP, Marketing

© 2012 Prime Alliance Solutions, Inc. All Rights Reserved

2

TheOld DayswereBe/er


3

PerhapsTruein

Paris

© 2012 Prime Alliance Solutions, Inc. All Rights Reserved© 2012 Prime Alliance Solutions, Inc. All Rights Reserved

But inMortgageLending?

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Really?


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Mortgage Lending in the 60s and 70s


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Mortgage Lending in the 80s and 90s


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Mortgage lending in the early 2000s


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The best Cme to be a mortgage lender is NOW!


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5


“The Best Investment a Credit Union Can Makeis a Loan to a Member.”

~ Richard W. Ayres

Founding CEO, US Central CU

10© 2012 Prime Alliance Solutions, Inc. All Rights Reserved

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Opportunity


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30-‐24-‐16


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205


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HousingAffordabilityat Record

High Housing Affordability IndexJanuary 1981 to October 2011

Source: Na+onal Associa+on of Realtors mjperry.blogspot.com

1985 1990 1995 2000 2005 2010

200

180

160

140

120

100

80

60


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Owning More

A/racCve than

RenCng


Source: Joint Center for Housing Studies of Harvard University

2,000

1,750

1,500

1,250

1,000

750

500

Notes: Monthly mortgage payments are based on the median exis+ng home price from the Na+onal Associa+on of Realtors® and assume a 20-‐percent downpayment and a 30-‐year fixed-‐rate mortgage at the average rate for the quarter reported by Freddie Mac. The monthly gross rent is the median gross rent from the 2010 American Community Survey indexed to the Consumer Price Index for Rent of Primary Residence. Both series are adjusted for infla+on using the CPI-‐U for All items.

Sources: JCHS tabula+ons of Freddie Mac, Primary Mortgage Market Survey; Na+onal Associa+on of Realtors®; US Census Bureau, 2010 American Community Survey; and US Bureau of Economic Analysis, Consumer Price indexes.

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Mortgage Payments Have Become More Affordable RelaCve to RentsMonthly Housing Costs (2011 dollars)

Mortgage Payment Gross Rent

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Homes are

Affordable...

Source: Joint Center for Housing Studies of Harvard University

Home Ownership Rate

1994 1996 1998 2000 2002 2004 2006 2008 2010

70.00%

69.00%

68.00%

67.00%

66.00%

65.00%

64.00%

63.00%

62.00%

61.00%


...Homeownership rates are declining.

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HARP


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Why It’s SAFE to

parCcipate in HARP

Rep and WarrantRelief

GSE AVMs


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The Last Refinance


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The Media


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the

POWERof Social Media


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It's Our Game On Our Playing

Field


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Why do we have to

talk about Money?


4 Interest Income

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1 Fees

2Sale

Proceeds

3 Servicing Release Premiums


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30%

20%


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PeopleNeedUs

OpportunityKnocks

TheMediaLoveUs

It’sOurGame

Money


28

Block&

Tackle


Midnight in CUMortgage LendingDan Green, EVP, Marketing


Thank You!

Midnight in CU Mortgage Lending (Credit Union Conference Presentation Slides)

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