Legal Seminar, Chicago, IL

CREDIT AVAILABILITY FOR Access to credit remains tight, especially for lower FICO borrowers. The median FICO for current purchase loans is about 32 points higher than the pre-crisis level of around 700. The 10th percentile, which represents the lower bound of creditworthiness to qualify for a mortgage, fell to 641 inMarch 2019 compared to low-600s pre-bubble. The median LTV at origination of 95 percent remains relatively high, reflecting the rise of FHA and VA lending. Although current median DTI of 40 percent exceeds the pre-bubble level of 36 percent, higher FICO scores serve as a strong compensating factor. CREDIT AVAILABILITY FOR PURCHASE LOANS CREDIT BOX 500 550 600 650 700 750 800 850 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FICO Score Borrower FICO Score at Origination Mean 90th percentile 10th percentile Median 797 641 732 725

LTV Combined LTV at Origination

100 110

100 88 95

30 40 50 60 70 80 90

72

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

DTI at Origination DTI

60

50

50

39 40

40

30

25

20

10

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

15

Sources: Black Knight, eMBS, HMDA, SIFMA, CoreLogic and Urban Institute. Note : Includes owner-occupied purchase loans only. DTI data prior to April 2018 is from CoreLogic; after that date, it is from Black Knight. Data as of March 2019.