Overview of the Home Equity Lending Benchmark Study

• The study examines the origination and performance attributes of both closed end (HEL) and open end (HELOC) loans.
• Focus on larger multi-channel home equity originators as well as lenders with unique business models.
• Compile key metrics and profitability drivers for direct (branch retail and consumer direct) and indirect (broker and correspondent) production channels.
• Emphasis on credit characteristics, sales, marketing, distribution, product strategies and best practices in originating second mortgages.
• Study the various ways in which home loans are originated – i.e. standalone, in conjunction with a first mortgage as a piggyback, as a cross-sell to an existing customer, and so forth.
• Measure the impact of various mixes of products, markets, distribution methods, staffing approaches, and automation on revenues and expenses.
• For over 15 years Wholesale Access has been honing its benchmarking methodology. In addition to this recently added group, we conduct benchmarking programs for prime first mortgage lenders and homebuilder-owned mortgage companies. This process creates useable data for effective peer comparisons across groups of leading industry players.

Process:

1. A questionnaire is designed to capture the study group’s desired data.
2. Data is collected, reviewed and edited.
3. Results are compiled into a comprehensive report detailing various metrics for the channels.
4. Representatives from each member of the study group and Wholesale Access meet for a day to review and discuss the data and analysis.
   • The meeting includes a half day spent reviewing the findings and a half day discussing the implications of the data and best practices
   • The discussions are rich and the opportunity to exchange ideas and network is invaluable.
5. Following the meeting, conference calls are conducted with senior management from each of the study group members. We discuss the data and findings with management relative to their unique situations.

Report:
The report consists of:

1. In depth look at each production channel.
   Participants will see:
   • Size of each channel
   • Products originated including data on LTV, credit score and documentation type etc.
   • Origination methods
   • Geographic data on originations
   • How revenue and expense is allocated to channels
2. Lots of metrics
   • Measure branch sales effectiveness
   • Efficiency and compensation statistics for sales and nonsales employees
   • Number of brokers and correspondents
   • Compensation and activity levels
3. Peer comparisons
   • Volume, income, expenses, efficiency and profit
   • Credit quality of originations
   • Product features
4. Time Series
   • As a regularly executed study, group members are able to stay on top of trends in income, expenses, efficiency and profit by channel through various credit and interest rate cycles.

Current and Past Participants in our Benchmarking and Home Equity Studies
ABN AMRO • Amtrust • American Mortgage Network • Aurora Loan Services • Banco Popular • Bank of America • BB&T • Charles Schwab Bank • Chase Home Finance • CitiMortgage • E*TRADE Financial • Fifth Third • Flagstar • HomeComings • HSBC Mortgage • National City Mortgage • PNC • SunTrust • US Bank • Washington Mutual • Wells Fargo

For more information contact:
Dan Balkin (410) 995-3368