PulteMortgage. To All Colorado Real Estate Finance Professionals,

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1 To All Colorado Real Estate Finance Professionals, On behalf of the Mortgage Bankers Association in Washington, D.C., I am pleased to offer a testimonial on behalf of the Colorado Mortgage Lenders Association. As Chairman of MBA, I am also a member of CMLA and strongly believe that all members of the Colorado real estate finance community need to join together within CMLA on issues that affect our companies, our employees and our customers. With our industry facing a large number of new state and federal regulations, the importance of communication and strong relationships with legislators and policymakers cannot be overstated. CMLA provides that access and facilitates collaborative dialogue. However, because the rules governing lenders today are unclear, and at times contradictory, the risk of litigation, indemnification and repurchase leaves the industry in a state of uncertainty, unable to take full advantage of the improving business climate. The sheer volume and magnitude of regulatory change has created high levels of complexity and a landscape where credit is overly tight. Qualified first-time, lowto-middle-income borrowers are being shut out of the mortgage process altogether. I have seen firsthand how the Colorado Mortgage Lenders Association, in partnership with the Mortgage Bankers Association, has strengthened our collective advocacy efforts, both in Washington, D.C., and Colorado. Through teamwork, we have brought about positive change in many policy areas such as the Qualified Mortgage rule, National Servicing Standards, and Loan Officer Compensation. There is much more to come in the next six months and beyond that will further shape the real estate finance industry for generations. We must work together to effect change in an intelligent and meaningful way. Being active members of a trade association at both the state and national level amplifies our voices and ensures all of our issues are addressed, from the State House in Denver to the Capitol in Washington. Your support of the CMLA and MBA s advocacy efforts is critical. In addition, there is huge value in taking advantage of education and networking opportunities. With the CMLA and MBA, I look forward to working with you to find solutions that create a better tomorrow for borrowers, our industry, and the economy. Sincerely, PulteMortgage Debra Still President/CEO Chairman, Mortgage Bankers Association Investing in Communities

2 Strengths & Core Competencies Colorado Mortgage Lenders Association has been the "Go-To" organization for the mortgage lending industry in Colorado for more than 53 years. The association's strengths and core competencies include: Strong membership base Industry leadership within CMLA ranks Functional long-term relationships with governing regulatory agencies Committed leadership from the Board of Governors, Board of Directors, Former Chairman's Circle and other industry groups with strong ties to the organization Recognition as a leading voice of the industry throughout Colorado and nationally Education Educational Seminars for industry professionals Certified Mortgage Lender Designation Program allows individuals another way to distinguish themselves in the industry Mortgage Leadership Program Consumer Education seminars and sponsorship Representation Networking CMLA is the only Mortgage based trade organization that retains a full-time lobbyist which ensures the legislative interests of membership CMLA is proactive in promoting the interests of membership to the legislature, agencies, general public, media and affiliated trade associations Luncheons with educational components and networking opportunities Statewide industry focused events - Lenders Expo and Annual Convention Gatherings that encourage fellowship, healthy competition, sharing ideas, and the creation of opportunity Annual Holiday Party - Social event paired with activities that fundraise for charity Golf Tournaments Furthermore, CMLA offers many "members only" benefits such as discounted pricing, special events and special services.

3 January CMLA Calendar Of Yearly Events July Denver Luncheon February April CMLA Capitol Day March May Statewide Lenders Expo June Mick Iverson Golf Tournament Western Chapter Wine Tasting No events scheduled August Convention and Golf Tournament September Denver Luncheon Golf Tournament Southern October Denver Luncheon November Western Networking Event December CMLA Holiday Party Northern Chapter Holiday Mixer Southern Chapter Holiday Mixer

4 Improving the Industry for Lenders and Mortgage Originators CMLA is the only mortgage focused trade organizaon in Colorado which retains a full me Lobbyist. This individual monitors rules and bills being proposed that would affect the Mortgage Companies and Mortgage Originators of Colorado. Over the years, CMLA has successfully added, eliminated or altered provisions which could have greatly changed the landscape of the industry. Below are a number of examples of how CMLA is safeguarding industry interests. Prevenng Loan Originators from Losing Licenses CMLA successfully lobbied to remove the requirement in the original licensing act (SB ) that loan officers provide a complete closing package to the borrower 24 hours prior to closing with no blank items and with no changes allowed prior to closing. Without this change Loan Officers could have lost their license if they did not comply, even though many Loan Originators do not have control over the Lenders to force them to comply with the requirement. Helping Loan Originators Avoid Arbitrary Processes As proposed in Colorado HB , in order to obtain a License as a Mortgage Loan Originator, an applicant or licensee would have to demonstrate that they were financially responsible. If an individual had shown that they were not financially responsible by any or all of the following, they would not be eligible for licensing as a mortgage loan originator: Current, outstanding judgments, other than judgments resulng solely from medical expenses Current, outstanding tax liens or other government liens or filings Foreclosures or a paern of seriously delinquent accounts within the last three years A minimum credit score as set by the Division of Real Estate CMLA and the Division of Real Estate were able to get a provision removed from HB , and intern the Division adopted a rule stang if a Mortgage Loan Originator had a surety bond and adequate errors and omissions coverage in place, that Mortgage Loan Originator would be considered financially responsible under Colorado Law.

5 Prevenng Mortgage Companies from Liability under the Mortgage Loan Originator Law As originally proposed by the Division of Real Estate, mortgage companies would have been liable for the enre spectrum of the acons of all their Loan Originators. As a result of CMLA s successful lobbying, the only areas a mortgage company now has responsibility is for unlicensed originators, record keeping and adversing. CMLA was also able to amend the original proposed legislaon to provide that a violaon of the licensing law by a Loan Originator employed by a mortgage company would not automacally cause the company to be in violaon of the law. Changing how the Industry is Regulated According to HB , both Mortgage Companies and Mortgage Loan Originators in Colorado would have connued to be regulated by the director of the Division of Real Estate. In part to CMLA s efforts, the industry is regulated by a Board made up of our peers: the Board of Mortgage Loan Originators. This board consists of three Licensed Mortgage Loan Originators and two non licensed individuals. Providing Loan Originator Financial Protecon According to HB , if a Mortgage Loan Originator were to be invesgated by the Division of Real Estate, the Mortgage Loan Originator would have been responsible for paying the costs of the invesgaon whether they were found in violaon of the law or rule and regulaons of the division. CMLA was able to change the provision so Mortgage Loan Originators would be responsible for paying the division s costs for invesgaon when the Originator was found to be in violaon. Helping Remove Responsibility of the Loan Originator for Record Retenon HB stated that Mortgage Loan Originators are responsible for maintaining files for the Division of Real Estate for up to four years aer originaon even though mortgage lending companies are the primary custodian of the records. Further, Mortgage Loan Originators are subject to fines for failing to produce documents upon demand by the Division. CMLA successfully lobbied to remove the document retenon requirement from Mortgage Loan Originators and to allow the mortgage companies to hold the documents.

6 The Importance of Legislative Involvement and Advocacy: From Fran Coleman, former Colorado State Representative and current Lobbyist for the CMLA The Colorado Mortgage Lenders Association has been supporting Colorado s Mortgage Lending community for more than fifty years. My own experience of CMLA s advocacy started in 1999 when I was elected to the State House. I have truly come to respect the association s role in the outcome of public policy affecting the lending industry. Over the years I ve observed CMLA to be a leader in advocating integrity and professionalism within the Mortgage Industry. They provide key feedback and are instrumental in educating legislators. CMLA is always at the table when public policy is initiated within the Colorado Legislature. CMLA has also worked hard to prevent unnecessary regulation being added to the Colorado Revised Statues. I have had the distinct pleasure and honor of serving as CMLA s lobbyist since Since then, the Lending industry has experienced a tremendous amount of new rules, laws and regulation. On average I review 600 bills annually, usually finding that contain language that will affect the industry. I work closely with CMLA s Legislative Committee, which is comprised of over 20 mortgage professionals who are committed providing feedback and changes to the proposed legislation. Were CMLA not so committed to this process, I am sure Mortgage Companies and Originators alike would be subject to costly and invasive regulation. Thank you for your support and membership in CMLA. Your participation ensures that CMLA can continue to keep a watchful eye and safeguard your interests. The value of fulltime advocacy means that you can focus on your effort to help more consumers achieve the American dream of home ownership. Sincerely, Fran Coleman, Coleman Consulting, LLC

7 Feedback from our State Legislators on CMLA s involvement: Over the years I ve observed CMLA s true professionalism within the mortgage industry. Their members are well informed and effective in educating the legislators about their association and the current issues. Colorado s mortgage industry is served very well by CMLA s substantive legislative efforts. Senator Lois Tochtrop, D Senate District 24 CMLA has been the leader in the mortgage industry when it comes to legislative issues. They are visible and present at the Capitol from the beginning of the session to the end. When bills are written that concern lending or housing, I can always count on Fran Colman to Terry Jones to provide me a clear and fair perspective from the lender s point of view. Senator Mark Scheffel, R Senate District 4 Further Testimonials from CMLA Members on the importance of CMLA s legislative efforts: Cherry Creek Mortgage Company is greatly affected by new legislation being proposed at both the state and national levels. The Colorado Mortgage Lenders Association s Legislative Committee and their lobbying activities give us a respected and knowledgeable voice in matters that affect our industry, our company and our employees. Tom Donnegan, Regional Sales Manager, Cherry Creek Mortgage Company With the ever-changing regulatory landscape around the mortgage lending business, it s critical that we stay actively engaged with our elected officials. CMLA brings us all together and provides a way for our industry to speak with a single, strong clear voice. Greg Osborne, Principal, Bridge Capital Resources, LLC Land Title Guarantee Company has been a member of CMLA for over 20 years. CMLA provides Land Title with great exposure to the top mortgage companies and credit unions throughout Colorado. The Association also creates great educational events that help Land Title and its employees better understand the challenges and opportunities facing today's mortgage professionals. We support CMLA's mission to advance free enterprise and the highest ethical standards in the mortgage lending industry. John E. Freyer Jr., Senior Vice President, Land Title Guarantee Company