Regional Outlook Bernard M. Markstein Director of Forecasting April, 2007

History and Forecast

10.0 to 0 0 to Less Than More than 10.0 US: 4.8% Total Starts Growth Q vs. Q (%)

Total Starts Growth Q vs. Q (%) 10.0 to 0 0 to Less Than More than 10.0 US: -24.3%

Total Starts Growth Q vs. Q (%) 10.0 to 0 0 to Less Than More than 10.0 US: -5.4%

Total Starts Growth Q vs. Q (%) 10.0 to 0 0 to Less Than More than 10.0 US: 5.8%

Population Growth

Population Change: 2005 versus 2004 More than 2% 1% to 2% 0% to 1% Less than 0% US: 0.98%

Population Change: 2006 versus 2005 More than 2% 1% to 2% 0% to 1% Less than 0% US: 0.98%

Employment Growth

Employment Growth: 2005 versus 2004 More than 2% 1% to 2% 0% to 1% Less than 0% US: 1.7%

Employment Growth: 2006 versus 2005 More than 2% 1% to 2% 0% to 1% Less than 0% US: 1.9%

Housing Prices

Change in Existing Home Prices in Y/Y Q4, % or more 10% to 20% 5% to 10% 5% or less US: 13.2%

Change in Existing Home Prices in Y/Y Q4, % or more 10% to 20% 5% to 10% 5% or less US: 5.9%

Subprime Loans

Share of Loans serviced at Subprime: 2002 Q4 Less than 4% 4% to 7% 7% to 10% More than 10% US: 3.8%

Share of Loans serviced at Subprime: 2006 Q4 Less than 4% 4% to 7% 7% to 10% More than 10% US: 11.6%

Share of Loans serviced at Subprime: % point increase from 2002 Q4 to 2006 Q4 Less than 3 3 to 6 6 to 9 More than 9 US: 7.8