April, 2012

TheMReport — News and strategies for the evolving mortgage marketplace.

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LOCAL EDITION SECONDARY MARKET residential mortgage loan sales, not activities with the Home Affordable Refinance Program. "We remain focused on supporting our customers with loan modifications and refinancing through the Making Home Affordable program, and those solutions will not be impacted," he adds. Referencing a report by Inside Mortgage Finance, the New York Times said that Bank of America accounted for $37.7 billion, or roughly one-third, of Fannie Mae's mortgage purchases last year. Hamilton Financial Index Shows Strength COMPANY ROLLS OUT ITS EVALUATION OF THE STATE OF THE U.S. FINANCIAL SERVICES INDUSTRY, REVEALING POSITIVE RESULTS. OHIO // Hamilton Place Strategies has released findings from its analytics initiative, the Hamilton Financial Index. The company makes public its examination of the state of the U.S. financial services industry on a semiannual basis, and Hamilton conducts the study on behalf of the Partnership for a Secure Financial Future. To create the index, Hamilton evaluates the systemic risk and capital levels of the nation's financial institutions, offering a look at how the industry is addressing risk. In an official statement, Hamilton noted the study's current findings showed increasing strength in the financial sector. As of the fourth quarter of 2011, Hamilton's index was valued at 1.15, representing a 15 percent improvement over historical expectations. However, the totals still reveal a decline off of numbers seen in the second quarter of the year, when the index stood at 1.24. Key results from Hamilton's index included the all-time high demonstrated among commercial banks' Tier 1 common capital levels. The company also found that the ratio of loans to deposits has declined by 20 percent since 2007, establishing a foundation for higher levels of lending. Data from the index showed that consumer loans increased dramatically to end 2011, while business loans continue to lag. In the private sector, companies reduced their outstanding debt by 17 percent off of highs recorded during the peak of As a participant in the Partnership for a Secure Financial Future, Hamilton works alongside companies, including the Consumer Bankers Association, Mortgage Bankers Association, Financial Services Institute, and the Financial Services Roundtable. The organization defines its mission as raising "awareness of the vital role the financial services are taking strides to ensure a stronger environment for our customers and businesses. With higher capitalization levels and a reduction in outstanding debt, it is clear that financial institutions continue to play a vital role in our economic recovery." Acquisition Leads to Single Largest Conversion PNC ANNOUNCES THE PURCHASE OF RBC WILL HELP THE COMPANY SET A NEW RECORD FOR CUSTOMER CONVERSION. PENNSYLVANIA// PNC Financial Services Group com- pleted the acquisition of RBC Bank, reopening more than 400 branches across six Southeastern states as PNC banks. At 415 branches, this was PNC's single largest conversion occurring at one time. Former RBC branches were in business last month as PNC Banks in Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia. The con- version also involved the transi- tion of 900,000 customers. The Pittsburgh-based bank now has 2,900 locations across 19 states and the District of Columbia, according to a com- pany release. "The addition of RBC Bank is the crisis to end 2011 on a more positive note. Commenting on Hamilton's recent index results, company partner Matt McDonald said, "The Hamilton Financial Index reinforces what a large stream of data continues to show: The financial services industry is more safe and sound than at any time during or before the financial crisis. Whether we look at capital levels, liquidity, asset quality, or exposure to risk, the accepted benchmarks for the financial industry have been improving dramatically across the board." industry plays in growing our nation's economy, creating new jobs, and supporting small businesses—alongside our commitment to ensure our industry is strong, sound, and able to withstand the ebbs and flows of economic challenges." Steve Bartlett, president and CEO for the Financial Services RoundTable, spoke out on Hamilton's index recently, stat- ing, "The data in the Hamilton Financial Index report reflects what we are seeing across the industry: Financial institutions have done a great deal to become more safe and sound today. We a great opportunity for PNC to expand in attractive Southeast markets and generate revenue growth," said James E. Rohr, PNC's chairman and CEO. "The success of our recent acquisitions demonstrates that when we bring our innovative products and services to new markets, we have the proven ability to win clients and increase efficiencies." This conversion is PNC's seventh acquisition in the past eight years. According to a release, between 2009 and 2010, PNC converted more than 6 million customers and 1,300 branches from National City Bank in four phases during a seven-month period. THE M REPORT | 79 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET

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