1. August Monthly Member Call Quantifying the Distressed Property Market

2. 81% of homeowners believe their home won’t fall in value over the next 6 months. 60% believed the value of their home had fallen over the last year 83% of all homes actually lost value during that time Distressed Property Perception QUANTIFYING THE DISTRESSED PROPERTY MARKET

3. Delinquency rate this quarter breaks the record set last quarter More than 1 in 8 homes is delinquent or in foreclosure 2 nd Quarter 2009 Mortgage Delinquencies Florida –23% (12% in foreclosure ) Nevada – 21% Arizona – 16% Michigan – 16% Current Market Trends QUANTIFYING THE DISTRESSED PROPERTY MARKET Source: MBAA.org

4. Foreclosure Last Month 360,149 New Foreclosures in July Alone July marks the third time in the last five months where we've seen a new record set for foreclosure activity July foreclosures jumped 7% compared to June QUANTIFYING THE DISTRESSED PROPERTY MARKET

5. Top 10 Foreclosure States StateTotal1/every X HH Nevada15,75370 California80,775165 Arizona18,119147 Florida46,391188 Idaho1,764358 Michigan12,564360 Illinois14,218369 Georgia10,185389 Oregon3,608446 Ohio11,231451 What does this tell us? The foreclosure problem is more a local one than a national one. QUANTIFYING THE DISTRESSED PROPERTY MARKET

6. 4.3% in Foreclosure 8.86% in Default (30+ days late) Mortgage Bankers Association Based on 45,000,000 mortgages National Numbers August 20, 2009 Source: MBAA.org QUANTIFYING THE DISTRESSED PROPERTY MARKET

7. Q2 2009 Mortgage Delinquencies QUANTIFYING THE DISTRESSED PROPERTY MARKET

8. National Numbers All Mortgages Total Distressed Properties9,550,000 1 Total Predicted Sales4,760,000 2 1 2NAR, Walt Molony QUANTIFYING THE DISTRESSED PROPERTY MARKET

9. Prime & Subprime Loans 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year Only 33% of foreclosures originated from subprime loans, down 49% last year

10. QUANTIFYING THE DISTRESSED PROPERTY MARKET We are here

11. QUANTIFYING THE DISTRESSED PROPERTY MARKET We are here

12. QUANTIFYING THE DISTRESSED PROPERTY MARKET We are here

13. On your Street Last year 1 in 10 homeowners had trouble paying their mortgage. An average neighborhood street has about 12 houses. Statistically, around 3 of those homes are having trouble paying their mortgage. Nationally, 1 in 8 homeowners are having trouble. There’s 1 to 2 or more homeowners on every street in America that needs help! QUANTIFYING THE DISTRESSED PROPERTY MARKET

14. Over 7 out of 10 homeowners go into foreclosure without VISIBLE intervention.