Veterans Benefits Administration 2018 VA LENDERS CONFERENCE Directors

Veterans Benefits Administration 2018 VA LENDERS’ CONFERENCE Director’s Welcome

Mission & Vision Mission Statement Maximize opportunities for Veterans and Servicemembers to obtain, retain, and adapt homes by providing a viable and fiscally responsible benefit program in recognition of their service to the Nation. Vision Statement To empower Veterans with information and access to innovative products and services by providing a Veteran-focused experience, strengthening our partnerships, driving continuous performance improvements, and never forgetting who we serve. 2

Strategic Goals Our Workforce Program Innovation Quality Customer Service Attract and retain a workforce with the skills, knowledge and commitment necessary to serve Veterans Ensure the program remains adaptable and innovative so that the VA Home Loan is the product of choice Deliver a quality customer experience to Veterans through consistent, timely, and accurate benefits and services that meet their needs. Veteran Advocacy Serve as the leading voice in Veterans’ housing issues. 3

My Daily Focus – Guiding Principles Automation Data-Driven Decisions Veteran Centric Customer Relationships Supply Chain Management Creating a CI Culture 4

Near-Term Strategic Objectives 1 Maximize the number of VA Loan Certificates of Eligibility provided instantaneously. Ensure all manual-touch COE requests are processed in 5 business days or less. 2 Strive to assign appraisals at the time of request, and ensure no appraisal waits more than 2 business days for assignment 3 Maintain Default Resolution Rate of at least 85% 4 Work to process active Specially Adapted Housing (SAH) cases within 120 business days 5 Ensure the VA Home Loan program exceeds housing industry benchmarks for key metrics, so that it is viewed by stakeholders as a model program. 5

Loan Volume Guaranteed Loans FYTD 18 FY 17 FY 16 FY 15 Purchase Loan Volume 180, 906 380, 437 353, 002 322, 115 Total Refinance Volume 147, 866 359, 951 352, 472 309, 027 IRRRLs 56, 552 190, 914 215, 561 194, 806 Cash-Out 90, 429 166, 878 135, 379 112, 399 Other Refinance 855 2, 160 1, 532 1, 822 328, 772 740, 389 705, 474 631, 142 Total Loan Volume 6

Loan Volume FY 03 -FY 17 800000 740, 388 700000 Loan Volume 600000 500000 489105 Purchase Cash-out 400000 IRRRL 380, 437 330317 Total 300000 190, 913 200000 100000 0 148614 166, 878 10174 2003 2005 2007 2009 2011 2013 2015 2017 Fiscal Year 7

Interesting Facts Historical 23 Million loans since 1944 – totaling $2. 1 Trillion FY 17 In FY 17, guaranteed 2, 961 loans per business day, totaling $754 M each day Foreclosure Rates VA - Guaranteed loans maintained the lowest foreclosure (0. 92%) and SD rates (2. 43%)in the industry Conventional loans are second. 8

MBA Delinquency Survey Loan Data Q 4 (CY) 2017 Conventional FHA VA Total Past Due 4. 19% 10. 38% 4. 49% Seriously Delinquent 2. 55% 4. 78% 2. 43% Foreclosure Inventory Rate 1. 09% 1. 76% 0. 92% 9

Challenges Appraisals • Appraisal Assignments • Appraiser Recruitment – Appraisers in the right locations • Customer Service – Appraisers scheduling within 48 hours Loan Churning/Serial Refinancing • Data – Small amount of Lenders • Reduction of Loans from last year • Niche market for Lenders who are willing to take greater risks Condo Approval Process Review 10

VALERI-R Project (High-Level Vision) End to End Environment 1 st step is rebuilding servicing on a COTS based Salesforce platform 2 nd step is origination data MISMO compliant UCD 3 rd step is ULAD w/Salesforce workflow and underwriting automation enhancements Transparency for all stakeholders 11

AMS Re-Compete 1. Required Usage 2. Enhanced Data Analysis 3. Workflow Tracking 4. Improved Stakeholder Communications 12

Sampling of Projects (This Year) Bulk Guaranties Lender Audit Revamp in conjunction with Lender Scorecards Lender’s Handbook Updates these are done will be final and published by summer COE Enhancements – e. g. , eligibility is determined before appraisal order Enhance API capabilities for data exchange IRRRL Disclosure and reporting Servicer Tier Ranking Evaluation 13

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