Residential and commercial delinquency rates decreased from June 2009 to a predicted rate of 8.9% in December 2010. Special servicing balances for commercial mortgage backed securities increased significantly from $8 billion in August 2008 to $49.4 billion in July 2009 due to rising delinquencies. Maturing commercial mortgage backed securities loans were also expected to increase in upcoming quarters according to Trepp, LLC data.

2. Residential and Commercial Delinquencies Source: MBA and Trepp, LLC June ‘09 Actual 13.54% Dec ‘10 Predicted 8.90% June ‘09 Actual 4.18%

3. Combined Delinquency and Specially Serviced Source: Trepp, LLC Special Servicing balance Aug ’08 $8.0 bn Special Servicing balance Jul ’09 $49.4 bn

4. Maturing CMBS Loans, by Quarter Source: Trepp, LLC