U.S.MortgageMarketTrendsandIndicatorsfor2016-17

Confiden'al:Pleasedonotshare

US Fed’s rate hike and stronger economy is likely to make a posi7ve impact to the U.S. overall mortgage market in 2016 - 17

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2012 2013 2014 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2

Allholders FamilyResidence Mul>-FamilyResidence Non-Farm Farm

$T MortgageDebtOutstandingfortheU.S.(2012–2016)

§  Overallgrowthinmortgagedebthasbeenatmoderate1%CAGR(2012to1H2016)

§  ThefastestgrowingsegmenthasbeenMulK-FamilyResidence(at5%CAGR)followedbyFarms(at4%CAGR)

§  ExpectedinterestratehikefromtheFederalReserve(withmoreratehikeslikelytofollowin2017),strongerU.S.grossdomesKcproductgrowthandamoderatelystrongerjobsmarketshouldbolstertheeconomyandraisebothmortgageratesandhomeprices

§  Majorchallengehasbeenaccesstocredit,specificallymortgageinstruments,hasnotbeeneasyformanywould-behomebuyersbutthatissettochange

Source:FederalReserve

Technology and data-driven ini7a7ves will mi7gate few key challenges in the U.S. mortgage industry going forward

Hyper-compe>>oninthemarketasservicingmarketconsistsofbank

servicers,non-bankorindependentmortgageservicers,andsub-servicers

ac>ngasthird-partyvendorstoservicersofrecord

Increasingcostofservices:Between2008and2013,costofservicinga

performingloanhasincreasedby264%

Increasedregulatoryandcompliancerequirements

Lossmi>ga>onconsidera>onspostnon-availabilityofHomeAffordableModifica>onProgramandHomeAffordableRefinanceProgram

LeverageadvanceanalyKcstechniquesforidenKfythetargetcustomersforcross/upsell;riskidenKficaKonand

miKgaKon;beZermanagementofNPL(non-performingloans)

ThroughconfigurableworkflowandintegraKonwithsoluKonshandlingofworktasks,servicerscansaveKme,boostusersaKsfacKonandensureamorepredictableoutcomeacrossthe

loanservicinglifecycle

EvoluKonofdatadriveniniKaKvesarewaystomanageKPI-drivenreporKngandon-

demandaudits

ThiscanbemiKgatedbyGSELoansbuttheyshouldestablishtheirownwell-documentedmiKgaKonplanstousein

applicablecircumstances.

Solu>o

n

3Source:Forbes,MortgageORB,Karvy

Key

Challenge

Confiden'al:Pleasedonotshare

ThanksContactus:KarvyAnalyKcswww.karvyanalyKcs.com