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1/19

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2/19

Existing Home Sales

12,630 HomesSell Every Day

and 8,715 BuyersReceive a Mortgage

NAR 1/2012

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3/19

Pending Home Sales

70.0

80.0

90.0

100.0

110.0

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NAR 1/2012

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4/19

Months Inventory of Homes for Sale

NAR 1/2012

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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5/19

Return on Investment

Dow S&P NASDAQ Real Estate

Series 1 16.2 -5 -30.2 38.5

16.2

-5

-30.2

38.5

-50

-30

-10

10

30

50

(January 1, 2000 February 1, 2012)

MSN Money.com, Case Shiller

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6/19

Upbeat on the Market

The Wall Street Journal:From Bottom Up, Signs of Housing Recovery

USA Today:Housing Outlook is More Upbeat

Washington Post:

Housing Market and EconomyShowing Encouraging Signs.

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7/19

Upbeat on the Market

CoreLogic:CoreLogics chief economist Mark Fleming says housing statistics

and the duration of the downturn to date indicate 2012 may be theyear the housing market begins to turn the corner.

Fannie Mae:

The housing sector will likely take

incremental steps forward in 2012

according to economists atFannie Mae.

Freddie Mac:With the New Year comes a sense of cautious optimism.

There are some positive signs in the job market andconsumer confidence; housing is starting to raisehopes for continued gradual economic recovery.

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8/19

The January labor market report is a big

positive surpriseIn combination with better

news from Europe, recession fears are

easing still further, and growth prospectsfor 2012 are improving.

Employment and the Economy

IHS Global Insight 2/3/2012

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9/19

Employment

Calculated Risk 2/3/2012

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Homes today are more

affordable for average families

than they have been since1971. Median-income familiestoday have nearly double thefunds needed to purchase the

average home.-HUD

Affordability at

1971 Levels

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11/19

Rents Rising Rapidly

$1,000

$1,025

$1,050

$1,075

$1,100

$1,125

$1,150

$1,175

$1,200

2009 2010 2011 2012* 2013* 2014*

National Average Rent

* projected Marcus & Millichap 1/26/2012

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"I just thought it was time to buy a home. Warrentells me that it will be the best opportunity in mylifetime. Mortgage rates are low and prices have

dropped dramaticallyI share Warren's viewabout the future of America, and webelieve that our country willdo just fine. I'm happy to

make this investment.Debbie Bosanek - Warren Buffets Secretaryof 37 Years on Purchasing a Second Home

Time to Buy

Omaha World Herald 1/27/2012

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13/19

If youre buying a

house or apartment to

live in and pay for overtime, and can affordthe payments, then its

aterrific time to buy.

Karl CaseCo-Founder of the Case Shiller Index

Karl Case

NY Times 1/30/2012

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14/19

Chris ThornbergChris Thornbergisa former UCLA economist anda founding principal of Beacon Economics.

2007-Whats the point of buyingtoday when you can buy it for 10

percent less in a year? For the lifeof me, I cant figure out that logic.

2012-Even if youve been thinking

about buying a condo in Vegas orbuying a condo in Miami, buy now.Now is a great time to buy a home.

Orange County Register 1/12/2012

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15/19

will be the bestopportunity in

your lifetime.

Buying a Home Right Now

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16/19

3.75

4

4.25

4.5

4.75

5

5.25

Mortgage Rates 30 Year Fixed

1/01/2011 Today

Federal Reserve

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RATE5.00 1,933 1,986 2,040 2,094 2,147

4.75 1,878 1,930 1,982 2,034 2,087

4.50 1,824 1,874 1,926 1,976 2,027

4.25 1,771 1,820 1,869 1,919 1,968

4.00 1,719 1,766 1,814 1,862 1,910

3.75 1,667 1,714 1,760 1,806 1,852

3.50 1,617 1,661 1,706 1,751 1,796

$360,000 $370,000 $380,000 $390,000 $400,000

-10% -7.5% -5% -2.5% LOAN

Payment Based on Interest Rates

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Quality Residential Mortgage - QRM

1.) A Product-Type qualified residential mortgage is a first-lien mortgagethat is for an owner-occupant with fully documented income, fully amortizingwith a maturity that does not exceed 30 years and, in the case of adjustable rate-

mortgages (ARMs), has an interest rate reset limit of 2 percent annually

and a limit of 6 percent over the life of the loan.

2.) A PTI/DTI qualified residential mortgage has a borrowers ratio of

monthly housing debt to monthly gross income that does not exceed 28percentand a borrowers total monthly debt to monthly gross income thatdoes not exceed 36 percent.

3.) An LTV ratio qualified residential mortgage must meet a minimum LTV ratiothat varies according to the purpose for which the mortgage was

originated. For home purchase mortgages the LTV ratio is 80 percent.4.) A FICO qualified residential mortgage has a borrowers FICO scoregreater than or equal to 690at the origination of the loan.

Mortgage Market Note #11-02

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Harder To Get a Mortgage

At the most restrictive combined thresholds, the vastmajority of creditworthy borrowers about 85% wouldnot qualify for a QRM mortgage

These excluded borrowers representhouseholds that have not gone intoforeclosure, indicating that undulyrestrictive underwriting guidelinescould bar borrowers who can besuccessful homeowners fromobtaining a QRM mortgage.

Housing Wire 1/19/2012