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Fannie Mae Releases January 2021 Monthly Summary

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Fannie Mae’s (OTCQB: FNMA) January 2021 Monthly Summary is now available. The monthly summary report contains information about Fannie Mae’s monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, serious delinquency rates, and loan modifications. The monthly Summary highlights are: • Fannie Mae’s Guaranty Book of Business increased at a compound annualized rate of 6.0% in January.• The Conventional Single-Family Serious Delinquency Rate decreased 7 basis points to 2.80% in January.• The Multifamily Serious Delinquency Rate decreased 2 basis points to 0.96% in January.• As of January 31, 2021, 3.2% and 2.9% of our Single-Family Conventional Book of Business based on unpaid principal balance and loan count, respectively, was in active forbearance, the vast majority of which wererelated to COVID-19; 11% of these loans in forbearance (based on loan count) were current.• As of January 31, 2021, 0.4% of our Multifamily Guaranty Book of Business based on unpaid principal balance was in an active forbearance, the vast majority of which were related to COVID-19.• In January 2021, Fannie Mae issued resecuritizations that were backed by $11.9 billion in Freddie Mac securities.• As of January 31, 2021, Fannie Mae’s maximum exposure to Freddie Mac collateral that was included in outstanding Fannie Mae resecuritizations was $143.3 billion. Monthly Summary | Fannie Mae IMPORTANT NOTE:Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency (FHFA) acting asconservator, since September 6, 2008.

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Synergy, Inc. Expands with Focus on Mixed-Use, Multi-Family and Modular Construction

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Synergy, Inc., a second-generation and family-owned construction company, announced plans to expand its business and focus on modular construction, affordable housing, senior housing and assisted living, and other real estate development projects in the mixed-use and multi-family markets. The commercial general contractor is a market leader in modular construction through its Synergy Modular brand, with a large focus on affordable housing and market-rate multi-family housing. Synergy Modular was created to address the challenges of labor shortages and rising costs in the affordable housing market. Using advanced off-site construction methods and innovative processes, the company has found success where others have failed in developing and building affordable housing as well as market-rate multi-family, student, and senior housing. Synergy, Inc. offers a wide variety of construction, development, and financing services that complement the off-site and modular construction businesses. Aside from housing, the company also manages large commercial projects for financial institutions and healthcare companies, among others. “Our mission is to leverage our decades of experience, proven best practices, advanced off-site and modular construction technologies, and development acumen to create an industry-leading real estate company and solve the affordable housing crisis in America,” said Justin Stewart, CEO of Synergy, Inc. Advanced offsite and modular construction methods are the biggest trends in the industry today, but many developers struggle to find the right solution and appropriate budget for their projects. Synergy, Inc. has introduced a one-stop, comprehensive feasibility package that pairs the company’s industry-leading expertise with top architects. More information on this optimized, turn-key solution is available at www.synergymodularfeasibility.com. With offices in Seattle, Scottsdale, and Austin, Synergy, Inc. manages projects throughout the western United States. The company currently has active projects in Washington, California, Arizona, and Texas and is expanding into other states with the right strategic partners. The company is committed to operational excellence and innovation in offsite construction methods and plans to lead the next generation of mixed-use, multi-family, and commercial general contracting, renovations, and specialty projects. More information is available at synergyi.com.

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Vacant Zombie Properties Remain Miniscule Factor in U.S. Housing Market Amid Ongoing Foreclosure Moratorium

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ATTOM Data Solutions, curator of the nation’s premier property database,  released its first-quarter 2021 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,449,253) residential properties in the United States are vacant, representing 1.5 percent of all homes. The report analyzes publicly recorded real estate data collected by ATTOM Data Solutions — including foreclosure status, equity, and owner-occupancy status — matched against monthly updated vacancy data. Vacancy data is available for U.S. residential properties at https://www.attomdata.com/solutions/marketing-lists/. The report reveals that just 175,414 properties are in the process of foreclosure in the first quarter of this year, down 12.3 percent from the fourth quarter of 2020 and 38 percent from the first quarter of 2020. The number of pre-foreclosure homes sitting empty (6,677 in the first quarter of 2021) is also down 12.3 percent, measured quarterly, while it has decreased 23.1 percent, measured annually. The portion of pre-foreclosure properties that have been abandoned into zombie status remained at 3.8 percent in the first quarter of 2021, compared to the prior quarter. Among the nation’s total stock of nearly 99 million residential properties, zombie properties continue to represent just a miniscule portion – only one of every 14,825 homes in the first quarter of 2021. That figure is down from one in 13,074 in the fourth quarter of 2020 and one in 11,405 in the first quarter of last year. The first-quarter 2021 data shows that empty homes at some point in the foreclosure process continue to disappear from most neighborhoods across the country as the housing market remains strong and the federal government keeps trying to shield homeowners from an economic slide stemming from the worldwide Coronavirus pandemic. A moratorium against lenders foreclosing on government-backed mortgages has been in place since last March, affecting about 70 percent of home loans in the United States. The temporary ban, recently extended to June 30, was enacted under the CARES Act passed by Congress last March to help borrowers who have lost jobs or other sources of income during the pandemic. Some private lenders also have voluntarily offered mortgage extensions. “These days, you can walk through most neighborhoods in the United States and not spot a single zombie foreclosure. That continues a remarkable turnaround from the last recession when many communities were dotted by abandoned properties,” said Todd Teta, chief product officer with ATTOM Data Solutions. “The trend does remain on thin ice because foreclosures are temporarily on hold, and the market is still at risk of another wave of zombie properties when the moratorium is lifted, depending on the general state of the broader economy. For the moment, though, zombie properties remain pretty much a non-issue in the vast majority of the country.” Zombie foreclosures down in 35 states A total of 6,677 residential properties facing possible foreclosure have been vacated by their owners nationwide in the first quarter of 2021, down from 7,612 in the fourth quarter of 2020 and 8,678 in the first quarter of last year. The number dropped, quarter over quarter, in 35 states. Among states with at least 100 properties in pre-foreclosure in the first quarter of 2021, the biggest decreases from last quarter in zombie properties included Kentucky (down 52 percent), Mississippi (down 51 percent), Louisiana (down 48 percent), Connecticut (down 47 percent) and California (down 44 percent). States with the biggest increases included Arkansas (up 63 percent), Texas (up 62 percent), Minnesota (up 32 percent), Massachusetts (up 24 percent) and Missouri (up 20 percent). Zombie-foreclosure rates rise in 29 states Zombie-foreclosure rates increased from the fourth quarter of 2020 to the first quarter of 2021 in 29 states. Those with at least 100 properties in the foreclosure process during the first quarter that have the largest increases include Kansas (rate up from 16.3 percent to 20.7 percent of all properties in the foreclosure process), Arkansas (up from 3.1 percent to 6.6 percent), Minnesota (up from 4.7 percent to 7.1 percent), Maine (up from 8.6 percent to 10.8 percent) and Hawaii (up from 4.7 percent to 6.4 percent). Highest numbers of zombie properties again in northeastern and midwestern states New York continues to have the highest number of zombie properties in the first quarter of 2021 (2,064), followed by Florida (926), Illinois (759), Ohio (633), and New Jersey (363). California leads in the West, with 130. “It’s good to see the number of zombie foreclosures continue to fall,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM Data Solutions company. “But states with vacant properties caught in long judicial foreclosure processes should take steps to accelerate the disposition of those properties. This would reduce the health risks of having homes vacant during a pandemic, and provide much-needed affordable housing inventory to prospective homebuyers.” States in Midwest and South show biggest decreases in overall vacancy rates Vacancy rates for all residential properties in the U.S. declined to 1.46 percent in the first quarter of 2021, from 1.56 percent in the fourth quarter of 2020 and 1.53 percent in the first quarter of last year. States with the biggest decreases are Kentucky (down from 1.8 percent of all homes in the fourth quarter of 2021 to 1.2 percent now vacant), Rhode Island (down from 1.8 percent to 1.3 percent); Indiana (down from 2.5 percent to 2.3 percent), Kansas (down from 2.7 percent to 2.5 percent) and Mississippi (down from 2.7 percent to 2.5 percent). Other high-level findings from first-quarter data: Among metropolitan statistical areas with at least 100,000 residential properties and at least 100 properties facing possible foreclosure, the highest zombie rates in the first quarter of 2021 are in Peoria, IL (15.5 percent of properties in the foreclosure process); South Bend, IN (15.2 percent); Cleveland, OH (12.3 percent); Davenport, IA (11.9 percent) and Baltimore, MD (11.9 percent). Aside from Cleveland and Baltimore, the highest zombie-foreclosure rates in major metro areas with at least 500,000 residential properties and at least 100 properties facing foreclosure are in St. Louis, MO (10.5 percent of foreclosure properties); Indianapolis, IN (9.2 percent) and

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Realogy Celebrates A Decade As One Of The World’s Most Ethical Companies

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Realogy, leading provider of residential real estate services in the U.S., was recognized for the tenth consecutive year as one of the 2021 World’s Most Ethical Companies by Ethisphere, a global leader in defining and advancing the standards of ethical business practices. Realogy is one of only four honorees in the real estate industry and amongst fewer than one-quarter of the 2021 honorees who have received the designation for ten or more years.  “Celebrating 10 years as one of the World’s Most Ethical Companies is an incredible distinction and a milestone achievement for Realogy’s employees who demonstrate our commitment to ethics every day,” said Ryan Schneider, Realogy chief executive officer and president. “This designation is especially meaningful following such an extraordinary year, and I am so proud of how our employees continued to uphold our values as they supported our affiliated agents, franchise owners, consumers, and each other in helping keep America moving with integrity above all else.” Shacara Delgado, Realogy’s chief ethics and compliance officer, added: “Even as we navigated change and disruption in an unprecedented year, Realogy employees stayed true to our values and operated with the same unwavering commitment to ethics and integrity that we’ve demonstrated for ten consecutive years. This year’s acknowledgement honors the lasting and consistent commitment we’ve made over the years to ensure integrity is part of who we are at Realogy.” In addition to its robust Ethics and Compliance program, Realogy’s focus on ethics and integrity is demonstrated through its many community, diversity, and environmental sustainability initiatives and accolades, including: Certification as a Great Place to Work® for the last three consecutive years Named by Forbes as one of America’s Best Employers for Diversity, along with Realogy brands Century 21® and Coldwell Banker® Strong support of and collaborative partnerships with real estate associations that promote diversity and inclusion, including the National Association of Hispanic Real Estate Professionals (NAHREP), National Association of Real Estate Brokers (NAREB), the Asian Real Estate Association of America (AREAA), and The LGBTQ+ Alliance, of which Realogy was a founding sponsor Repeated honors for gender diversity on the Realogy Board of Directors from Executive Women of New Jersey (EWNJ) and the Women’s Forum of New York “Ten years of operating with integrity is no small feat, especially while addressing the tough challenges of 2020. Realogy reached this milestone in a year when earning trust was more important than ever and remained steadfast in its ongoing commitment to ethics and integrity,” said Ethisphere CEO, Timothy Erblich. “They continue to demonstrate their commitment to the highest values and positively impact the communities they serve. Congratulations to everyone at Realogy for earning the World’s Most Ethical Companies designation for a remarkable tenth year in a row.” About RealogyRealogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of U.S. residential real estate services, encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture. Realogy’s diverse brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, and Sotheby’s International Realty®. Using innovative technology, data and marketing products, high-quality lead-generation programs, and best-in-class learning and support services, Realogy fuels the productivity of independent sales agents, helping them build stronger businesses and best serve today’s consumers. Realogy’s affiliated brokerages operate around the world with approximately 190,700 independent sales agents in the United States and nearly 130,000 independent sales agents in 115 other countries and territories. Recognized for ten consecutive years as one of the World’s Most Ethical Companies, Realogy has also been designated a Great Place to Work three years in a row and one of Forbes’ Best Employers for Diversity. Realogy is headquartered in Madison, New Jersey. 

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DLP Lending Closes $21 Million Loan, Partners with Southern Impression Homes to Open Vacation RV Resort

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DLP Lending, part of the DLP REal Estate Capital family of companies, announced it closed a $21 Million loan with Southern Impression Homes on Island Oaks RV Resort, located in Glen St. Mary, FL, near Jacksonville. Additionally, DLP provided $6.5 M of equity capital to become partners with owners Carter Funk, Chris Funk, and Jim Shiels on the project.  Don Wenner, DLP Founder and CEO, commented, “Our team worked diligently with Carter, Chris, and Jim in order to secure the type of capital they needed to move forward on this exciting venture. As we continued our own due diligence, we found the project to be very valuable and worthwhile as a DLP investment and we were thrilled when they agreed to partner with us.” Upon completion, the resort will include 700 RV sites spread across the 120-acre property. The resort will offer its guests a wide variety of activities and amenities to enjoy during their stay including a family dining restaurant, sports pub, tiki bar located on the beach of the 3- acre swimming lake, resort-style pool, 9000 sq.ft. clubhouse, pickleball and shuffleboard courts, along with a 9-hole mini golf course. Chris Funk commented, “It’s been an amazing experience working with DLP Lending! Their knowledge of the industry and speed of execution on this deal was impressive. I look forward to working with them on the next deal.”

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Q4 2020 Single-Family Rental Investment Trends Report

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State of the Market The single-family rental (SFR) sector went into the pandemic atop a healthy wave of momentum. Since the onset of the pandemic, domestic migration patterns and shifts in housing demand have unilaterally added fuel to the SFR fire. The millennial cohort’s maturation, coupled with the obsolescence of cities during a pandemic, has meaningfully bumped up demand for suburban housing. According to John Burns Real Estate Consulting and National Rental Home Council, 59% of newly signed SFR leases are from households leaving cities. The long-term dwindling of starter homes and the growing tendency of householders to remain in their homes for longer make it exceedingly difficult for entry-level buyers to compete for a limited supply of inventory. This has resulted in an overflow of suburban housing demand, and SFR operators have proven more than ready to take advantage. The total market cap of the SFR sector is already within striking distance of multifamily, and there is a near consensus that SFR will continue to enjoy demographic tailwinds and increasing economies of scale for the foreseeable future. Performance Metrics Occupancy As measured by the U.S. Census Bureau, occupancy rates across all single-family rentals averaged 95.1% in the fourth quarter of 2020, ticking down by 20 basis points (bps) from the previous quarter (Chart 1). The latest estimate keeps occupancy levels near generational highs last seen in 1994. From 2007’s lows, occupancy rates for all SFR properties are up by 5.4%. The occupancy rate for single-family, owner-occupied units sat at 99.1% at the end of the fourth quarter, holding steady from the previous quarter. Together, these trends reflect a market where demand for single-family housing is outstripping supply. Rent Growth According to DBRS Morningstar, annualized rent growth on vacant-to-occupied (V2O) properties rose by 50 bps to 7.5% in October 2020, the latest month of data availability (Chart 2). The October reading is the second highest for V2O properties since tracking began in 2015, and it comes just two months after reaching its all-time high of 7.8% in August. Rent growth in vacant-to-occupied properties climbed steadily throughout 2020, despite pandemic-related headwinds during the initial shutdown. V2O rent tends to have a high degree of seasonality, reaching a bottom in the late fall and peaking in the spring. When pandemic-induced shutdowns began in the U.S. in March, the normal cycle of seasonal rent growth acceleration was interrupted. However, as time would prove, momentum was not thwarted but merely delayed. Since June, annualized rent growth has sat at 6% or higher, a level unseen since the spring of 2016. A tenant shift out of dense urban cities and a historically tight housing market are causing a bottleneck of demand for new SFR product, pushing rents higher. Year-over-year rent growth in lease renewals rose 62 bps in October to an annualized 4.1%, on par with its pre-pandemic mark in March. Rent growth on lease renewals, which tends to see far less seasonal variability, fell dramatically between April and June, dropping as low as 1.4% — a symptom of landlords prioritizing renter retention during the worst days of the recession. Since then, rents have risen considerably but remain below the 4.5% average growth rate between the start of 2019 and when the recession took hold in March 2020. Cap Rates & Prices Property-level yields for SFR assets continue to fall. In fourth-quarter 2020, SFR cap rates ticked down to 5.9% — their lowest level on record. Measured quarter over quarter, cap rates fell by a remarkable 61 bps (Chart 3). Moreover, since second-quarter 2020, SFR cap rates are down 79 bps. Continued cap rate compression reflects asset price appreciation, low benchmark interest rates and growing operational efficiencies. The yield spread between cap rates and the 10-year Treasury offers an estimate of the SFR risk premium (the amount of additional compensation needed to justify taking on the extra risk). In the fourth quarter, this spread fell by 82 bps to 5.0%, bringing it back near pre-pandemic levels (Chart 4). Spreads between SFR and multifamily cap rates settled at 0.93% to end 2020, falling by 53 bps from the prior quarter and marking the most substantial single-period drop since late 2015. These data trends offer support to what most market watchers already know to be true: While there remains a yield premium for holding SFR assets as opposed to the same number of units in a multifamily property, the premium is falling fast. The single-family rental sector’s institutionalization has meant that new purpose-built rentals are starting to contain differentiating characteristics from other single-family homes. However, the institutionally held slice of the SFR market is still dwarfed by individual investors, reflecting the sector’s infancy. As of the U.S. Census Bureau’s 2018 Rental Housing Finance Survey (released fall 2020), individual investors accounted for 72.5% of all SFR assets. The collection of LPs, LLCs and LLPs made up another 15.7%. Between real estate corporations and real estate investment trusts (REITs), the share of institutionally controlled SFR assets totaled just 2.3%. While the emerging trends may be for dedicated SFR communities and greater product heterogeneity, most SFR properties currently look just like any other single-family home. Across the U.S. housing market generally, prices are accelerating. According to the S&P Case-Shiller National Home Price Index, valuations are up by 9.5% year over year through November 2020, more than doubling the growth rate of 3.7% reported one year ago (Chart 5). According to CoreLogic, housing prices are getting squeezed by extremely tight inventory levels. The share of housing units selling in less than 30 days on the market soared to 33.9% through October, toppling the previous peak of 21.4% reached in 2004. LTVs Loan-to-value ratios (LTVs) on SFR mortgages fell by a weighty 5.4% in the fourth quarter of 2020, settling at 60.4% (Chart 6). LTVs tend to fall during a recession, reflecting more conservative underwriting. Here, the pandemic appears to be a double-edged sword. Not only is there evidence of fewer ultra-high LTV loans, but underlying asset values have accelerated during the pandemic — a unique feature of this particular downturn. Debt Yields Debt

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