Legal Seminar, Chicago, IL

MSRs to Total Equity: Top 5 Bank vs Nonbank Servicers (averaged)

160%

151%

140%

136%

120%

100%

80%

60%

40%

20%

0%

3Q2015

4Q2018

Bank Servicers

Nonbank Servicers

Current State of NB Mortgage Market

• We are not saying things are heading for trouble

• We are saying that elevated risks: – Relaxing underwriting – Greater concentrations – Less capital and liquidity – Increasing volatility and consolidation Heighten awareness in the event of an event: – Example - Quicken Loans, Inc. (NMLS #3030) – see next page

• Takeaway: Routine monitoring of financial trends highlighted recent deterioration and regulator questioning to company regarding financial condition. Monitoring is active and ongoing with the company.