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Dave Maguatee Expectation Survey " "" ....tot Pricing 1,,d _ ;ems le the Sarne, it Jest Costs Lee Months Loan ...to paymcni Amnon Rat. wail 70% Say Time to Buy is Now National Hotalno Sonny' 70% of respondents think it is a good We to buy a house. And of those 36% think it is a very good pr.' time to buy. di! 79 79 71 70 Beak Of America Pricing Forecast

Existing Home Sales 12,575 Homes Sell Every Day and 8,300 Buyers Receive a Mortgage NAR 3/2012

Jan NAR eb 3/2012 Pending Home Sales Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

NAR 3/2012

70.0

80.0

90.0

100.0110.0

S&P Case Shiller 3/2012 S&P Case-Shiller Home Price Indices

Federal Reserve Mortgage Rates 30 Year Fixed 1/01/2011 Today 3.75%

5.25%4.75%4.00%

Case Shiller Pricing Index 2000 Jan 2003 TODAY 225.00

175.00

100.00

150.00

Forbes 03/23/2012 Rent vs. Buy Best to Rent 2% Certainly prices have continued to fall nationally, but rents have been rising so this would be the lowest price-to-rent ratio that weve seen. Best to Buy 98% Jed Kolko, Trulia Chief Economist

Marcus & Millichap 1/26/2012 Rents Rising Rapidly * projected National Average Rent $1,000

$1200$1100

HousingWire 3/16/2012 Rents Rising Rapidly Vacancies in the home-rental market will push average rental rates up as much as 5% by early 2013.

HOUSING ON THE REBOUND If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, thats what were expecting with sales rising 7 to 10 percent in 2012. Lawrence Yun NAR Chief Economist NAR 03/2012

Housing on the Rebound B. of A. Merrill calls housing bottom this year Bank of America Merrill Lynch says housing prices will begin rising this year Inventories have fallen and policy moves have helped stoke demand for homes, according to the firm Firm's long-term view unchanged, but now says housing recovery will start earlier, be more gradual MarketWatch 03/22/2012

Housing on the Rebound Stabilization in U.S. housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing. - Goldman Sachs Group BusinessWeek 3/29/2012

Housing on the Rebound We see stabilizing and then gradually increasing prices

Pro Teck Valuation Services Pro Teck 03/29/2012

Housing on the Rebound "I believe were very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green...Homes for sale are about half what they were four years ago. You could come up with a pretty bullish case." Jamie Dimon, Morgan Chase CEO CNBC 03/28/2012

Housing on the Rebound Even the housing market is showing some signs of shaking off the depression- like conditions that have plagued it for much of the past few years. - Frank Nothaft Freddie Mac Chief Economist Freddie Mac 03/28/2012

March 19th Cover BARRONS Magazine

NAR, Wall Street Journal 03/29/2012 Investment and Vacation Homes Sales of investmentand vacation homessurged last year, thelatest evidence thatinvestors and higher income households aretaking advantage of lowhome prices to scoopup bargains.

DSNews 03/26/2012 More Investors Buying Short Sales September 2011 February 2012 HousingWire 3/2012 Short Sales Surging 20082009201020112012

Supply & Demand Lowest supply in 5 Years

Demand Is Steady

NAR Months Inventory of Homes for Sale Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

10 Months9 Months6 Months4 Months OCC Mortgage Metrics Report 3/2012 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011132,625157,733168,256186,854 HIGHLOW 95,067

116,060Completed Foreclosures

1Q 201 2Q 2011 3Q 2011 4Q 2011 OCC and OTS Mortgage Metrics Report 3/2012 Foreclosures in Process 1,350,000

1,200,0001,000,000 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011

1st Q 2012 Will Increase

Shadow Inventory Resolved in 2012 Foreclosure Sales 900K 1M Short Sales 500K Principal Reductions 500K HAMP Modifications 360K Other Modifications 270K REO-to-Rental Program 100,000 Housing Wire

NAR Percentage of Distressed Property Sales Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb0 %20%40% NAR Percentage of Contract Failures 35% 20% 5% Aug 2010 July 2011 Sept 2011 Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Contract failures cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price. 31%33%9%

Home Price Expectations Survey 3/2012 4 Future Home Prices Average 3%

Per Year2012 0 3 2 - .72 1

xerito..'" ice Expectation Survey uniner Pilcing Index-rabbi Bank Of America Pricing Forecast uy is Now the sem., it Just Coats Lea MaMnly Leto term. Pa PCI) 7"0;n:f_,H;;Pristid'ke'riYt' house.th'rkit is a good thinK f 10000 o g very c1 s a vo ittime to NY' 79 72 Dave Magua