EuroCatalyst 2005

DAY 1 | DAY 2 | DAY 3

FINAL PROGRAM

DAY 2: 27 SEPTEMBER 2005 (TUESDAY) / ROME HILTON


DAY HOSTS:	Michael Coogan, Director General, Council of Mortgage Lenders (UK) Stephen Knight, Executive Chairman, GMAC-RFC UK

0845-0900	OPENING COMMENTS AND INTRODUCTION / Toni Moss, founding partner, EuroCatalyst BV

0900-1015	SESSION 1 RETAIL MARKETS AT WHOLESALE PRICES? GAUGING THE IMPACT OF GLOBALISATION ON MORTGAGE MARKETS This session continues our four-year dialogue on the impact of globalisation throughout the mortgage industry and European mortgage markets in particular, and defines the context of the annual EuroCatalyst event. Without taking a position on the globalisation debate, the session is intended to provoke further thoughts on the intensely local nature of mortgage markets in contrast to the increasingly global nature of their funding and the implications of that gap for players across the value chain.
	PANELLISTS:	Alan Boyce, Director, Soros Fund Management Jaime Cortina, CFO, Sociedad Hipotecaria Federal Keith Davies, WPP-Prudential & Accounting Standards Department, FSA Todd Groome, Division Chief, Financial Market Stability Division, IMF Robert Parker, Vice Chairman, Credit Suisse Asset Management Ganesh Rajendra, Managing Director and Head of European Asset-backed Research, Deutsche Bank

1015-1030	BREAK

1030-1145	SESSION 2 CROSS-BORDER LENDING AND NEW MARKET ENTRY: THE COMMERCIAL REALITIES OF EUROPEAN MORTGAGE MARKET INTEGRATION The previous discussion on the globalisation of mortgage markets sets the stage for discussions on Europe and ongoing efforts to "integrate" European mortgage markets and what the integration process means in practice. In 2000, EU leaders identified financial integration as the building block to the single market and at the heart of "The Lisbon Strategy" to transform the EU into "the most competitive and dynamic knowledge-based economy in the world" by 2010. To this end, the European Commission has actively sought opinions and recommendations on integration of the mortgage market, including the Forum Group on Mortgage Credit, which in December 2004 published ("The Integration of the EU Mortgage Credit Markets") 48 recommendations for achieving an integrated European mortgage market in the areas of consumer confidence, legal issues, collateral issues, distribution issues and finance. In July 2005 it issued a Green Paper in direct response to the 48 recommendations of the Forum Group, and in August, it published a report on the costs and benefits of further integration carried out by London Economics which predicts that intervention at the EU level has the potential to facilitate and promote integration. This session looks at the main recommendations of the Forum Group, the European Commission’s Green Paper response, as well as the commercial strategies which have been undertaken to date and how they have fared; current incentives to enter new markets and the market factors that have enabled new market entry; and the changes in markets or new business models that will facilitate cross-border activity in the future. We will encourage the audience to respond as a group to the Green Paper, and perhaps even present this session’s conclusions to the European Commission.
	INTRODUCTORY PRESENTATION	Harsha Shewaram, EU Internal Markets and Services DG, Financial Institutions
	PANELLISTS:	Achim Dübel, Economist and Financial Services consultant Toni Moss, Founder, EuroCatalyst BV Erik Urskov, Executive Vice President, Nykredit A/S Ferdinand Veenman, Managing Director, Continental European Capital Markets Group, GMAC-RFC Manfred Westphal, Head of Financial Services Department, Federation of German Consumer Organisations

1145-1300	SESSION 3a FROM MINDSHARE TO MARKET SHARE: RISKS & REWARDS OF NEW PRODUCTS TO CAPTURE NEW MARKET SEGMENTS While globalization is clearly having an impact on the funding side of European mortgage markets, "local" European lenders are looking at ways to compete effectively in home markets by reaching out to underserved markets through product innovation. In their April, 2005 report on "Risk and Funding in European Residential Mortgages," Mercer Oliver Wyman identified a 15% market expansion of untapped opportunity equivalent to €500 billion of lending in Europe. This session discusses new market growth as lenders move down the credit curve and up the LTV curve in search of new borrowers, and explores how sub-prime, high LTV, reverse mortgage, and non-conforming lending will expand across Europe. We also discuss ways in which to manage the associated risk that accompanies new market segments, the funding approaches that work best, and which players are most likely to exploit these options. Finally, we’ll be taking a look at how lenders are branding new products to new market segments and challenging conventional wisdom on the branding lifecycles of mortgage products.
	INTRODUCTORY PRESENTATION	Matthew Sebag-Montefiore, Director, Mercer Oliver Wyman
	PANELLISTS:	Ray Boulger, Senior Technical Manager, Charcol Online Darren Cook, Head of Mortgages, Moneyfacts Group plc Willie Donald, European Consultant Bill Keenan, Chairman, DeNovo Corporation Eddie Register, Director, Servicer Ratings, FitchRatings
1145-1300	SESSION 3b IN FOCUS: Diversifying Funding, Pricing and Selling Risk - The 3rd annual EuroCatalyst Whole Loan Sales and Trade Exchange, Presented by Standard & Poor's In 2003 EuroCatalyst began featuring special workshops on the growth of whole loan sales as one of the most important trends in European mortgage market developments. While the majority of outstanding mortgage debt in the US is financed through securitization and agency debt, historically European lenders have relied largely upon retail deposits or the issuance of senior unsecured debt for funding. In the late '90s national markets began to alter legislation to enable the securitisation market to flourish. The newest alternative to securitisation is now whole loan sales and trades, a trend primarily driven by GMAC-RFC Securities. A whole loan transaction involves the sale of a pool of loans from one mortgage originator to another, benefitting sellers by providing an immediate risk transfer and flow of funds, and benefitting buyers by enabling the opportunity to securitize the pool. In addition to providing an additional funding alternative to securitisation, the growth of the loan sale sector increases the sophistication of European lenders in pricing and selling mortgage risk, fuels the growth of risk-based pricing platforms and automated valuations, and could potentially lead to a secondary market for servicing rights in the near future. This "in focus" workshop discusses n detail the advantages of whole loan sales as a means of asset disposition and why it is an increasingly popular means for all lenders, large and small, to diversify funding. On June 6, 2005, Standard & Poor's Structured Finance analysts Brian Kane and Emily Bradley released a comprehensive commentary on this sector in a report titled, "Europe's Whole Loan Sales Market Burgeoning As Mortgage Credit Market Comes of Age" which details the growth of European whole loan sales and trades on a pan-European and national market basis.
	HOSTS	Mike Culhane, Chairman and CEO, The Oakwood Group Craig Beresford, Head of Asset Sales - Capital Markets, GMAC-RFC
	PANELLISTS:	Alain Carron, Managing Director, Standard & Poor’s Patrick Currie, Managing Director, Hometrack Data Systems Steve Haggerty, Managing Director, Homeloan Management Ltd Trevor Pothecary, Executive Chairman, Mortgages plc Jeroen van Hessen, Managing Director, NIB Capital

1300-1400	LUNCH

1400-1500	SESSION 4 HELLO! HEADLINES IN A GOOD BUY MARKET: THE UK REMAINS RESILIENT One of the most competitive mortgage markets in the world, the United Kingdom continues to blaze the way in both primary and secondary market activities in Europe. As the CML aptly states in its Mortgage Market Manifesto (2004), the UK "has the most 'complete' mortgage market in Europe, taking account of the range of consumers served, the range of mortgages available, the accessibility of mortgage finance and the availability of information and advice." This session explores the challenges facing the UK as it deals with concerns over house prices, home ownership and funding as well as its position in the European context. How to raise share of first-time buyers in housing market (shared equity mortgage) Product development: saturation of mortgage market has pushed lenders to greater heights of creativity and innovation (HSBC "on sale" mortgage, Yorkshire Building Society 0% mortgage) Growth of subprime market; weak performance in UK non-conforming portfolios relative to the more aged portfolios Special servicing in the UK market
	HOSTS	Michael Coogan and Stephen Knight
	PANELLISTS:	Michael Bolton, Head of Lending, Birmingham Midshires Angela Clist, Partner, Allen & Overy Steve Haggerty, Managing Director, HomeLoan Management Limited Stuart Jennings, Director European Structured Finance, FitchRatings Trevor Pothecary, CEO, Mortgages plc Ganesh Rajendra, Managing Director and Head of European Asset-backed Research, Deutsche Bank

1500-1600	SESSION 5 THE GLOVES ARE OFF: WILL GERMANY BECOME EUROPE'S COMEBACK KID? Germany is the world's third-largest economy (in terms of GDP) and Europe's second-largest mortgage market. Once heralded as a world-class model for national productivity and stability, the German economy continues to bear the unprecedented weight of economic integration between East and West. The three parallel banking systems (public, co-operative and private) that previously defined the strength of and provided a balance for the German banking sector have evolved into a Darwinian struggle for survival. Commercial reality dictates that where there is confusion, there is profit. Therefore, while the German political process manages the challenges of structural reforms, this session focuses on the diversity of strategies undertaken by major market players as they seek to streamline their balance sheets and find sustainable growth leveraging every possible opportunity throughout the mortgage value chain. Despite restrictive limits to entry, in the past two years Germany has seen several players establish operations including GMAC-RFC who recently issued the first true-sale securitization issue since 1998. A key focus of the session are ways in which German lenders are leveraging the entire funding spectrum and the implications of that expansion. Specific discussion points include the regulatory impact on the German market and the operationalisation of Basel II; elimination of the mortgage banking monopoly on Pfandbrief; elimination of state guarantees for Landesbanken and subsequent rating downgrades and their impact; recent merger and acquisition activities and their impact on the market; the disappearance of the KfW true sale initiative and its current status and current market strategies. The session is anticipated to be the most provocative discussion and accurate reflection of the current state of mortgage lending in Germany ever conducted in public.
	HOST	Heiko Glander, Transformation Partners
	PANELLISTS	Prof. Dr. Thomas Kretschmar, Chairman, HypoPort Markus Schaber, Director - German Securitisation, Deutsche Bank Franz Schmidpeter, Managing Director, and Country Head—Germany, GMAC-RFC Deutschland GmbH Dr. Bernhard Scholz, Member of the Board, Münchener Hypothekenbank

1600-1615	BREAK

1615-1715	SESSION 6 IN SEARCH OF THE SILVER LINING IN NONPERFORMING LOANS (sponsored by Mayer, Brown, Row and Mawe)
	HOSTS	Heiko Glander, Transformation Partners Toni Moss, EuroCatalyst
	PANELLISTS:	Alessandro Gustapane, Performance Analyst, FitchRatings Gabriel Low, Managing Director, Fixed Income, Citigroup J. Kingsley Greenland II, President and CEO, DebtX (The Debt Exchange) Dr. Bernhard Scholz, Member of the Board, Münchener Hypothekenbank Dr. Jörg Wulfken, Partner, Mayer Brown Rowe & Maw

1715-1830	SESSION 7 THE WINE WARS (U.S. VS. EUROPE): EUROPE RIDES SHOTGUN DOWN THE CREDIT CURVE WHILE THE U.S. PULLS IN THE REINS (sponsored by PMI Europe) Over the years, EuroCatalyst has established a tradition to conclude its opening day with a champagne toast to the differences between the United States and Europe followed by a fun-spirited but provocative debate between teams on both sides of an important industry issue. This year we switch to wine as we debate the obstacles and opportunities in delivering new lending products to new market segments. Specifically, we'll be discussing the common goals and complexities of developing "a loan for every borrower" in the most cost-efficient and effective manner. The debate will center around the rapid growth and expansion of sub-prime and non-conforming lending throughout Europe in comparison to the US market which appears to have taken sub-prime lending to an extreme. Is Europe under-leveraged while the US is over-leveraged? Which consumers get a better deal? While sub-prime and non-conforming lending tend to be higher-risk, higher-reward products, what are the costs of managing the additional risk in terms of risk-pricing and servicing? Who is leading product development and which products are performing well throughout the value chain? Where has underwriting fallen short? Do sub-prime borrowers pay more than is warranted by the extra risk they present, or are borrowers too tempted to pay more than they can afford? Will the trend toward increased whole loan sales and trades in Europe drive a secondary market for servicing rights? To what extent will pressure on Fannie Mae and Freddie Mac in the US cause further disruption in servicing scale and even a complete overhaul of the US system? How are technology and servicing helping to manage the risk to offer a wider range of products to an increasing range of borrowers?
	TEAM EUROPE
		Jean-Louis Bravard, Managing Director, Global Financial Services Group, EDS Johannes Luef, President and CEO, VP Denmark Dominic Swan, Head of SIVs, HSBC
	TEAM U.S.A.
		Dr. Michael Lea Tony Porter, Managing Director and Chief Operating Officer, PMI Mortgage Insurance Co. Ltd. Stan Rhodes, Vice Chairman, ABN Amro Mortgage Group

1830 onward	WINE-TASTING SPONSORED BY EDS