Total Mortgage Identifies Key Trends in the Mortgage Marketplace in 2011

Milford, CT, January 12, 2011 --(PR.com)-- Total Mortgage Services, LLC, a leading national mortgage
lender featuring some of the lowest mortgage rates available, today highlighted five key trends likely to
impact the mortgage industry and housing market in 2011.

“The mortgage and housing markets continue to be impacted by the housing crisis, which has
fundamentally and permanently altered these businesses,” commented John Walsh, President of Total
Mortgage Services. “In 2011, we expect the mortgage and housing markets to continue to undergo rapid
changes. However, those who are able to rise to these challenges and opportunities will be able to survive
and prosper in the new year.”

2011 Mortgage Industry Trends

· Quality mortgage brokers will survive and remain relevant: Mortgage brokers, who are committed to
extensive product knowledge, ethical behavior, and the highest levels of customer service, provide
significant value to borrowers throughout the mortgage process. Without the mortgage broker,
competition amongst lenders will diminish. Mortgage brokers have the ability to shop for the best rates
and products at a variety of mortgage lenders. This allows individual borrowers to obtain access to a wide
array of products and rates. It also creates competition between lenders that benefits borrowers through
lower rates and better products. The many benefits that brokers provide to borrowers help to ensure their
continued relevance in the competitive mortgage industry.

· Appraisal issues will continue to negatively impact property values and the mortgage/housing market: It
has become much more difficult for those attempting to sell or refinance a home to get an appraised value
that allows them to qualify for a mortgage. This development is impacting borrowers' abilities to purchase
or refinance homes, and is slowing the stabilization of the housing market. The problem stems from a
lack of comparable home sales due to the slowing real estate market, as well as a significant increase in
the number of distressed properties selling at a sharp discount. This is an extremely important situation to
monitor, especially in light of the large shadow inventory that are expected to hit the market over the next
few years and the large number of foreclosures that were pushed into 2011 due to the robo-signing
scandal.

· The rigorous licensing process could create a shortage of loan officers and increase demand for quality
loan officers with experience and transferable relationships: Following the collapse of the housing bubble,
new regulations were enacted to ensure loan originators met certain minimum educational standards. The
Secure and Fair Enforcement Mortgage Licensing Act (SAFE Act) imposes costly and extensive
educational and testing requirements on loan officers. These requirements create a significant barrier to
entry for those who wish to become loan originators. As a result, there could be a shortage of
experienced, licensed loan originators. Those who are licensed and have transferable skills and
relationships will find themselves in high demand in 2011.

· Private investors will continue to be reluctant to invest in the jumbo mortgage market: The economics of

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jumbo securitization and new capital reserve requirements makes issuing jumbo mortgage backed
securities a risky proposition. Many of the lenders who are funding jumbo loans are portfolio investors,
and very few lenders have the capital and wherewithal to hold portfolio jumbo loans.

· Borrowers will significantly increase their use of the online mortgage process - from research to closing:
A recent Lending Tree survey found that 21% of consumers shop for mortgages online. Only a few years
ago, the percentage of potential borrowers that shopped online for a mortgage was negligible. Going
forward, one of the driving forces for online mortgage shopping will be younger, first time home buyers,
especially as Gen X and Gen Y consumers who have grown up with computers look to become home
owners. In addition, as electronic commerce becomes even more commonplace the number of borrowers
using the online mortgage process will grow.

About Total Mortgage Services, LLC

Total Mortgage Services, LLC, a provider of some of the lowest mortgage rates, is an industry-leading
direct mortgage lender and mortgage broker. The company has funded over $6 billion in mortgage loans
since 1997. Total Mortgage was included in the Inc. Magazines' list of America's Fastest Growing
companies in 2010 and holds Better Business Bureau “A” ranking since 1997. Licensed in 21 states, Total
Mortgage offers a variety of products and programs including fixed-rate loans, adjustable-rate mortgage
loans (ARMs), jumbo loans, FHA mortgages and more. In 2010, Total Mortgage launched its wholesale
lending platform TMS Funding. Visit TotalMortgage.com for current mortgage rates, FHA mortgage
rates, jumbo mortgage rates, ARM rates as well as other mortgage rates. For more information on Total
Mortgage, please visit http://www.totalmortgage.com.

Media Contact:
John Lovallo
Lovallo Communications Group
Telephone: 203-526-6371
Email: john.lovallo@lovallocommunications.com
Or email Total Mortgage directly at press@totalmortgage.com

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Contact Information:
Total Mortgage Services
John Walsh
203-876-2200
jwalsh@totalmortgage.com
http://www.TotalMortgage.com

Online Version of Press Release:

You can read the online version of this press release at: http://www.pr.com/press-release/289843

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