Welcome and Introduction

2. Welcome and Introduction Steve Rennie Managing Partner Hammerhouse, LLC Drew Waterhouse Managing Director, CEO Hammerhouse, LLC Sue Woodard PresidentVantage Production

3. Housekeeping If you can’t hear us, please call the number on your invitation email or dashboard. We’re using a phone line, not mic & speakers. To dial in To ask questions

4. Today’s Agenda • Introduction • The 4th Annual Survey of Originator Opinions • The Main Points • Company Advantages • Loan Originator Perceptions • Reality Check • Adapting to the New Reality • Model Matching Begins with Assessment • Q & A

5. Introduction Drew Waterhouseand Steve Rennie have been successful recruiters since 1996. Having founded internal recruiting teams within large national lenders and working on a consulting basis for many top national and regional lenders, Drew, Steve and the team at Hammerhouse have become trusted partners to loan officers, managers and leaders throughout the industry. Since 2008, Hammerhouse has placed more than 1,000 candidates representing a combined 24 month production value of $12 billion. More importantly their candidates have a rolling 12 month retention rate of 89%. In 2014, they published their first book: The Hammerhouse Effect: Obtaining Win-Win through Model-Match Recruiting A free eBook download and further contact information is available at: www.teamhammerhouse.com

6. The 4th Annual Survey of Originator Opinions • Market concerns have supplanted regulatory oversight as the top issue facing the industry • Lender’s operational capability has been joined by marketing support as their most important attributes • Company leaders are now being judged more on their ability to communicate and to be accountable for their actions • Originators are not being sufficiently represented in the recruiting process • Overall loan volume will drop, but personal production will rise • Satisfaction with their firms and their careers remains high

7. The Main Points • The mortgage industry has functioned largely the same for 25 years. • The Federal Reserve’s artificial support of low mortgage rates has allowed this to occur. • Once that support is withdrawn the mortgage market will fundamentally change. • Many do not see it and are failing to adapt. • Adapt or die

8. Company AdvantagesWhat’s your story? • People • Do you promote a clear, consistent and accountable communication on the USPs of your company? • Process • Do your technology and operational efficiencies out-perform the competition? • Products • Does your organization’s product mix support the changes we face moving forward? • Place • Does your culture foster the outcomes you seek?

9. Loan Originator Perceptions • 69% of LOs believed that mortgage industry production would drop in 2014 • However, 53% of LOs believed their production would rise; yet 56% of LOs did not reach their 2013 production goals • Only 23% believed a smaller overall market with increased competition was the biggest challenge they faced in 2014 • 44% of LOs believed their biggest challenge for 2014 was simply adding more referral relationships • Are LOs simply over-confident in their abilities? Are they practicing self-motivation while answering the survey questions? Are they delusional?

10. Reality Check • The mortgage industry of the future will experience: • Consistently rising rates • Stagnant TAM • Thinner margins • Longer sales cycles • More online/mobile business development • Closer integration with direct referral sources • Niche markets/products (geographical, cultural, loan type)

11. Reality Check • The opportunistic customer of the future will more likely be*: • Younger (but waiting longer to buy first home) • Female (heads of households on the rise) • Diverse (racially, family make-up) • Credit averse/credit challenged • A home buyer not a refinancer Is your business built to compete favorably for this business? *2014 US Census, The United States Census Bureau

12. Adapting to the New Reality Vertical Model Matching • Vertical Model Matching refers to the strategy of being positively Model Matched across the origination (business development/production) value chain much like vertical integration in traditional product distribution • The origination value chain is: • business development • application • processing • closing

13. Adapting to the New Reality Vertical Model Matching requires that: • LOs positively Model Match downward to customers and referral partners across: • Client profile, Business Process, Personality and Values • LOs positively Model Match upward to lenders across: • Leadership, Culture, Operations, Technology • Lenders positively Model Match downwardto LOs across: • Leadership, Culture, Operations, Technology • Lenders positively Model Match upward to the mortgage market across • Business (type of loans) and geography (origination activity level)

14. Model-Matching Begins with Assessmentwww.teamhammerhouse.com/model-match-assessment

15. Q & A Steve Rennie Drew Waterhouse

16. Thank you for attending Recruiting Top Producers in Today’s Market September 30, 2014 Drew Waterhouse Managing Director, CEOSteve Rennie, Managing Partner Hammerhouse, LLC Want to learn more? Call 1-800-963-1900 or visit vipexecutiveadvisor.com