Robert Gardner CEO/Partner Legacy Mutual Mortgage A Division of Gardner Financial Services 1635 N.E. Loop 410 Suite 205 San Antonio, Texas Fax Legacy Mutual Mortgage A Division of Gardner Financial Services

Texas: Existing Home Sales Source: Real Estate Center Source: Texas A&M Real Estate Research Center

Texas Residential MLS Activity Number of Homes Sold Source: Texas A&M Real Estate Research Center

A NNUAL S ALES T RENDS (J AN – N OV ) Number of Sales Source: MLS

Number of sales is down 3.2% year-to-date compared to 2008 Decline year-to-date from 2007 to 2008 was 19% Source: MLS

NUMBER OF SALES BY PRICE RANGE (NOVEMBER) Price Range # of Sales Source: MLS

Number of homes that sold at or below $199,999 is up 52% compared to November 2008 Market share in November 2009 was 76% Number of houses that sold at or between $200,000 - $499,999 is up 46% compared to November 2008 Market share in November 2009 was22% Source: MLS

NUMBER OF SALES $500,000 AND ABOVE (NOVEMBER) # of Sales > $500,000 Price Range Source: MLS Nov. ‘07 Nov. ‘08 Nov. ‘09 Nov. ‘06 46

Number of houses that sold at or above $500,000 is down 8% from November 2008 Down 24% from November 2006 Market share in November 2009 was 2% Source: MLS

BREAKDOWN OF SALES UNDER $200,000 (N OVEMBER 2009) Number of Sales Source: MLS

Texas: Months Inventory of Unsold Homes Source: Texas A&M Real Estate Research Center

Texas Residential MLS Activity Number of Months Inventory Source: Texas A&M Real Estate Research Center

N UMBER OF M ONTHLY A CTIVE L ISTINGS B Y Y EAR Month # of Active Listings Source: MLS

Inventory Analysis Inventory is declining Demand is up putting pressure on inventory which will result in higher prices

MONTHS OF INVENTORY BY YEAR (Includes Single-Family & Condos/Townhomes) Month Months of Inventory Source: Texas A&M Real Estate Research Center

MONTHS OF INVENTORY BY PRICE RANGE (November 2009) Months of Inventory Source: MLS (Represents only Single-Family Residential properties)

M ONTHS OF I NVENTORY Inventory is headed toward a 6 month supply which is considered a balanced inventory In the $1 million+ price range, inventory has gone from 44 months to 61 month supply which is the only price range to show an increase in months of supply

Days on Market (November) Source: MLS

YTD MEDIAN SALES PRICE PER YEAR (JAN - NOV) Source: MLS

Prices are expected to rise in 2010 Price stability will vary by price range and location

UP 44% 2009 COMPARED TO Foreclosure postings have climbed 85% over the past 5 years, since Foreclosure Listing Service, Inc. FORECLOSURE POSTINGS

Monthly Foreclosure Postings topped 1,400 seven times. Foreclosure Listing Service, Inc. New Record High 1,682 Postings January 2010 Auction FORECLOSURE POSTINGS

Fiscal Policy Job Growth Interest Rates Pent-up demand of housing Your plan will vary dramatically by price range and location Estimate for 2010 CLOSING REMARKS

Mortgage Rates at Historic Lows Likely to Move Higher by Next Summer Source: Texas A&M Real Estate Research Center