Presented to the TMBA on 2/11/09 on the state of the Texas and US housing markets

1. The Current Status and Outlook for the U.S. and state of Texas Economies, Housing, and Mortgage Markets Specially Prepared for: The Texas Mortgage Bankers Association Southwest Secondary Marketing Conference Presented by: LaVaughn M. Henry, Ph.D. Director, U.S. Economic Analysis The PMI Group, Inc. February 11, 2009

3. Source: Bureau of Economic Analysis

4. Source: U.S. Census Bureau

5. Source: U.S. Conference Board

6. Thousands Percent Source: Bureau of Labor Statistics

7. Source: Bureau of Labor Statistics

8. Source: Bureau of Labor Statistics

9. Source: Federal Reserve Bank of Dallas

10. Current Status and Outlook

11. Source: NAR / U.S. Census Bureau U.S. Single Family Home Sales

12. Source: NAR / U.S. Census Bureau

13. Source: First American CoreLogic, LoanPerformance

15. What is the U.S. Market Risk Index Saying about Future Price Movements?

16. Historical Accuracy Rate of the PMI Risk Index Sample Period: 1 st Quarter 1985 – 3 rd Quarter 2006 Source: The PMI Group, Inc.

17. Source: The PMI Group, Inc.

18. Source: First American CoreLogic, LoanPerformance

19. Source: The PMI Group, Inc.

20. Source: The PMI Group, Inc.

21. Source: Mortgage Bankers Association

22. Source: BLS / The PMI Group, Inc.

23. Current Status and Outlook

24. Source: Federal Reserve Board Consumer Installment Credit

26. Source: Mortgage Bankers Association

27. Source: Freddie Mac

28. Source: Freddie Mac

29. Source: Freddie Mac