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

2. History and Forecast

3. 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: 4.8% Total Starts Growth Q4 2005 vs. Q4 2004 (%)

4. Total Starts Growth Q4 2006 vs. Q4 2005 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: -24.3%

5. Total Starts Growth Q4 2007 vs. Q4 2006 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: -5.4%

6. Total Starts Growth Q4 2008 vs. Q4 2007 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: 5.8%

7. Population Growth

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

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

10. Employment Growth

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

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

13. Housing Prices

14. Change in Existing Home Prices in Y/Y Q4, 2005 20% or more 10% to 20% 5% to 10% 5% or less US: 13.2%

15. Change in Existing Home Prices in Y/Y Q4, 2006 20% or more 10% to 20% 5% to 10% 5% or less US: 5.9%

16. Subprime Loans

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

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

19. 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