RELOCATION

1. RELOCATION SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 GeLaine Joachim, SCRP Premia Relocation Mortgage Eileen Ulmer Budd Van Lines Steve Townsend NEI

2. MORTGAGE SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: GeLaineJoachim, SCRP PremiaRelocation Mortgage

3. 1964 Top singles of ‘64: Baby Love (The Supremes) Can't Buy Me Love (The Beatles) Chapel Of Love (The Dixie Cups) A Hard Day's Night (The Beatles) House Of The Rising Sun (The Animals) I Get Around (The Beach Boys) I Want To Hold Your Hand (The Beatles) Pretty Woman (Roy Orbison) Movies of '64: Goldfinger Marnie Mary Poppins The Pink Panther A shot in the dark My Fair Lady Last Man on Earth •ERC Was founded by Chris Collie Average annual income $5,880 • Gallon of gas 25¢ • Gallon of milk $1.06 • Loaf of bread 21¢ • 1st class postage stamp 5¢ • Pay phone (local call) 10¢ • Life Magazine 35¢ an issue • Rolls Royce Silver cloud Ill sedan $16,655 3

4. 1964 • $18,983 - Median Sales Prices of • New Homes Sold in the U.S.50 • years ago in 1964 • 5.54% - Average Interest Rate • $107.19 P&I - 30 YR Fixed Monthly Payment 4

5. Mortgages in the 60’s • You went to a local bank for your mortgage “think of George Bailey” • Manually underwritten by the “bank manager” • Most of the time women could not get mortgages on their own, and if a couple applied for a mortgage, only the husband's income was considered. • Most of the mortgage were 20-30 year fixed

6. Average Interest Rates: 50 YEARS Source: www.forecast-chart.com/interest-mortgage-30.html

7. Mortgage Industry 2007 and Before 2007 • Less Restrictive Approval Standards • If You Had A Pulse You Could Get A Mortgage • Limited/ NO Documentation Loans In Relocation • NINA RELO Loans: “No Income No Asset” Documentation Req. • Credit Score 680 Above • Who Do You Work For? • Who Much Do You Make? • How Much Do You Have In The Bank? • Let Me Know When You Want To Close This Week!!!! • Low Down Payments = 100% / 125% Financing

8. Mortgage Industry 2007 and Before 2007 • Mortgage Products That Helped Fuel Mortgage and Home Ownership Growth • Multiple Options For Low Credit Score • Subprime, Alt A Loans • Interest-only Loans • Combo Loans Aka; Piggy Back Loans, First And Second Mortgages (80/20 Loans To Avoid PMI) • Negative Amortization Loans • Trailing Co-borrower Income Considered WITHOUT a New Job • Fewer Property Restrictions “Condos” • Appraisal – Automated Valuation $75 Or Drive BY $125 • Departure Home- GBO, “O.K. No Documentation Required” • Mortgage Subsidies; Reduced Borrowers Payment To Help Qualify For Larger Loan Amount (3 Year Min)

9. Turning Point 2007/2008 • Housing Bubble Burst

10. Financial Reform Dodd-Frank: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 • Qualified Mortgage January 2014 General requirements for QM ·Prohibits loans with negative amortization, interest-only payments, balloon payments, or terms exceeding 30 years ·Prohibits “no-doc” loans where income or assets aren’t verified ·Generally mortgage fees paid not to exceed 3% of total loan amount ·Certain “bona fide discount points” are excluded ·Additional guidance is provided for threshold on smaller loans ·Maximum 43% Debt-To-Income (DTI) – based on highest payment in first five years ·Automated approval over the ratio acceptable ·Generally prohibits prepayment penalties

11. Mortgage Industry – After2007 and Today 1950 • Example Jumbo (Credit Scores/ Down Payment) • Full Documents Requirements • Income (Paystubs, W-2, Employer Letters) • Asset (Bank Statements, Investment Accounts, Retirement Accounts) • Maximum 43% Debt-to-income (DTI) • Disposition of Departure Residence • Evidence of Sale Required • Timing And Coordination With Transferee and Relocation Consultant • Loan Products • QM - limits products like; IO, Balloon • Trailing Co-borrow Income Not Allowed (Unless Employed In New Location)

12. Mortgage fun Facts • $3.945 trillion in mortgage originations • Best year ever for lenders 2003 • $1 trillion - $1.1 trillion • Current estimated mortgage originations for 2014 • $10.138 trillion at December 31, 2009 • Peak of mortgage debt outstanding • $9.875 trillion March 2014 • Amount of mortgage debt outstanding US Mortgage Market

13. Mortgage Industry – Looking Ahead • Interest Rates??????? • CFPB (Consumer Financial Protection Bureau) • “Know Before You Owe” project • Simplify and improve mortgage disclosure forms • New form – Loan Estimate • Combines the GFE and early TIL • Consolidation • We PREDICT a lot of consolidation in the US Market, Changing From Refi To Purchase Business. • Multiple consolidations

14. What’s Next?

15. Moving SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: Eileen Ulmer, CRP, GMS Budd Van Lines

16. History of moving

17. Moving industry - 1964 • Industry Overview • Pricing • Regulated Tariff • Lifestyle • “Out on the Road”

18. Moving industry – Current state • Overview • Pricing • Regulations

19. War for talent!

21. California CARB Compliance • What is CARB? • Status • Future Outlook 2

22. Future of moving?

23. The RMC’s SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: Steve Townsend, CRP, GMS NEI Global Relocation

24. Yesterday’s relocation

25. Today’s Relocation

26. The rules have changed…

27. And we’re never going back!

28. What happened? • The Industry Grew Up • Different Generations in the Workplace • Technology • Globalization

29. Industry impact • Knowledgeable Workforce • Aggressive Competition • Increased Transparency • More Stakeholders • More Synergy

30. Hr challenges 76 Million Over 10,000 Baby Boomers will turn 65 each day for 18 years starting in 2011 40% Of the world’s Petroleum Engineers expected to retire over the next decade Source: US Department of Commerce, Bureau of the Census; ICIS Chemical Business

31. Rmc’s challenges RMC’s Strategic Position

32. Questions?