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36 WATT TO NAREB: CHANGING CREDIT SCORING MODELS SHOULD WAIT In his August speech before e National Association of Real Estate Brokers' 70th Annual Convention, Mel Watt, Director of the Federal Housing Finance Agency (FHFA), said alternative credit scoring models have been among the most difficult initiatives he's undertaken during his tenure. Currently, GSEs use the FICO credit scoring model, which some critics claim is outdated and less granular than more recent models. But Watt said in an early August statement that after evaluation, the FHFA found that the short-term impact on access to credit wouldn't be as significant as public discourse has implied. Watt also explained that the response FHFA has gotten from the industry suggests that no changes should be made to the model before the Common Securitization Platform is fully operational and Fannie and Freddie have implemented single-security in mid-2019. "Credit scores are only one factor the Enterprises use to evaluate loan applications, and the Enterprises currently use the same or even greater levels of credit data in their underwriting systems as the credit scoring companies use," Watt said. "All of this means that we have enough time and flexibility to get the additional input and information we believe will be important to making the right decision." Equifax Inc., Experian Plc., and TransUnion founded VantageScore in 2006, a credit scoring model that some are saying could allow borrowers to gain more access to credit. However, in a statement to Bloomberg, Joanne Gaskin, FICO's Senior Director of Product Management, said the model still wouldn't derive an accurate score for borrowers who don't have enough credit history, and few consumers would meet loan requirements. "FICO is committed to helping consumers achieve sustainable homeownership," Gaskin told DSNews. "is is best accomplished by building the most predictive credit score so that responsible lending can occur." Gaskin explained that the best way to safely expand access to credit is not by lowering standards but by seeking out new data sources to score consumers that are currently credit- invisible. In regards to the allegations that FICO is dated, Gaskin said her organization supports the testing and adoption of FICO Score 9. "[It's] our most predictive score to date by the GSEs and FHFA, which incorporates rental data in addition to the Telco and utility data which is considered by the FICO Score in use today," Gaskin said. "We have not lowered our minimum scoring criteria as it weakens the predictive value of the FICO Score, which has been trusted by the industry over multiple market cycles." CLAROCITY APPOINTS NEW CHIEF APPRAISER Clarocity Corporation, based in Carlsbad, California, announced August 21 that Bill Waltenbaugh has taken on the role of Chief Appraiser at Clarocity Valuation Services. Waltenbaugh brings 30 years of real estate industry experience to his new role, including past experience as a chief appraiser and director of compliance at several appraisal management firms. "Bill Waltenbaugh is a nationally recognized appraiser, with vast experience in ensuring exceptional appraisal quality and compliance," said Aleksandra James, President of Clarocity Valuation Services. "As a key member of our strategic management team, Mr. Waltenbaugh will work to ensure that our entire product spectrum, including our proprietary appraisal solutions, maintain at high-quality standards that our customers have come to expect." Waltenbaugh said upon taking his new role, "I'm excited to be joining what I consider to be the most talented team in the industry." Holding the SRA and AI-RRS designations, Waltenbaugh has endured momentous changes throughout his career, from the first days of required appraisal licenses to the implementation of new rules from the Dodd- Frank Act. Waltenbaugh says the industry is poised for much more change. "e appraisal industry is bracing for a new wave of changes as technology and data are revolutionizing the way appraisers are engaged," Waltenbaugh said. "Clarocity represents the future of our industry by combining modern technology, innovative products, and valuation expertise necessary to drive the next-generation of appraisal solutions." Clarocity offers a full suite of technologically enhanced valuation solutions through products such as MarketValue Pro and BPOMerge. According to the National Reverse Mortgage Lenders Association/RiskSpan Reverse Mortgage Market Index, the growth in housing wealth for retirement- aged homeowners was driven by an estimated 2.1 percent, or $162 billion, improvement in senior home values, and offset by a 0.8 percent increase of senior-held mortgage debt that equaled $12 billion. KNOW THIS

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