U.S. Mortgage Market Trends and Indicators for 2016-17 with technology and data-driven initiatives will mitigate few key challenges in the mortgage industry going forward.

1. U.S. Mortgage Market Trends and Indicators for
2016-17
Confiden'al: Please do not share

2. 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
All holders Family Residence Mul>-Family Residence Non-Farm Farm
$T Mortgage Debt Outstanding for the U.S. (2012 – 2016)
§ Overall growth in mortgage debt has been at
moderate 1% CAGR (2012 to 1H2016)
§ The fastest growing segment has been MulK-
Family Residence (at 5% CAGR) followed by
Farms (at 4% CAGR)
§ Expected interest rate hike from the Federal
Reserve (with more rate hikes likely to follow
in 2017), stronger U.S. gross domesKc
product growth and a moderately stronger
jobs market should bolster the economy and
raise both mortgage rates and home prices
§ Major challenge has been access to credit,
specifically mortgage instruments, has not
been easy for many would-be homebuyers
but that is set to change
Source: Federal Reserve

3. Technology and data-driven ini7a7ves will mi7gate few key
challenges in the U.S. mortgage industry going forward
Hyper-compe>>on in the market as
servicing market consists of bank
servicers, non-bank or independent
mortgage servicers, and sub-servicers
ac>ng as third-party vendors to
servicers of record
Increasing cost of services: Between
2008 and 2013, cost of servicing a
performing loan has increased by 264%
Increased regulatory and
compliance requirements
Loss mi>ga>on considera>ons post non-
availability of Home Affordable
Modifica>on Program and Home
Affordable Refinance Program
Leverage advance analyKcs techniques
for idenKfy the target customers for
cross/up sell; risk idenKficaKon and
miKgaKon; beZer management of NPL
(non-performing loans)
Through configurable workflow and
integraKon with soluKons handling of
work tasks, servicers can save Kme,
boost user saKsfacKon and ensure a
more predictable outcome across the
loan servicing lifecycle
EvoluKon of data driven
iniKaKves are ways to manage
KPI-driven reporKng and on-
demand audits
This can be miKgated by GSE Loans but
they should establish their own well-
documented miKgaKon plans to use in
applicable circumstances.
Solu>on
3 Source: Forbes, Mortgage ORB, Karvy
Key
Challenge

4. Confiden'al: Please do not share
Thanks
Contact us:
Karvy AnalyKcs
www.karvyanalyKcs.com