National Association of Realtors

1
National Association of RealtorsStrategic
Planning Committee MeetingJanuary 30,
2008Jef KinneyFannie Mae
2
The Rate of MDO is Moderating
3
Foreclosures Continue to Increase
4
Percent Subprime Lending By County
5
Delinquencies Continue to Climb
6
Delinquencies Subprime vs. Prime / ARM vs. FRM
7
Delinquencies Vary by Geography
8
Housing Market Cycles- National
Source Business Analysis Decisions
Home prices have historically given up much of
their inflation-adjusted growth after a boom.
9
Housing Market Cycles- California
Source Business Analysis Decisions
California is the other state with the largest
cumulative price gain during the last upward
cycle.
10
Housing Market Cycles- Florida
Source Business Analysis Decisions
Florida is one of the two states with the largest
cumulative price gain during the last upward
cycle.
11
Product Trends

• Agency execution is the only liquid market
• More Fixed Rates ? Fewer ARMs
• Interest-Only FRMs gaining ground
• Subprime and Alt-A have ground to a halt
• Underwriting and eligibility criteria have
  tightened
• Refinances increasing
• Increased valuation bias for refinance loans
• Subprime refinances acquired by Fannie Mae
• 13 Billion / 68,000 homeowners
• 96 percent are refinancing into an FRM

12
Conforming Rates Fall Jumbos at a Premium