1. Preparing for Industry Change Prosperity Mortgage and Long and Foster June, 2009 <Insert JV logo>

2. Industry Changes : Four New Federal Requirements R egulations will affect every mortgage originator in the nation Housing & Economic Recovery Act July 30, 2009, implementation of new timelines for delivery to customer of initial disclosures and TIL Home Ownership and Equity Protection Act Oct. 1, 2009, implementation of higher-priced mortgage regulation Home Value Code of Conduct May 1, 2009, implementation of new appraisal-delivery rules: customer must receive at least 3 days before closing RESPA Tentative implementation of January 2010; legislation still in flux All Lenders Must Comply, Including Brokers I. HVCC II. HERA III. HOEPA IV. RESPA July 30, 2009, implementation of required licensing for all originators with fingerprinting, background check Reduces/eliminates rush closings or last-minute rescues; severely limits closing-table changes to fees, loan amounts, etc. New category, disclosures and processes Changes to sales marketing materials Q2 2009 implementation of new advertising disclosures Appraisal questions may delay closings; HVCC requirements must be met for sale to Fannie/Freddie Revised GFE and HUD-1; ‘Required Use’ is dead 1 Today Around the Corner In the Fall Early 2010

15. Calendar If the application is taken in person (instead of a phone application in the example below), then we may be ready to close up to 4 business days sooner because the initial disclosures are issued and the upfront fees can be collected at application.