April, 2012

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LOCAL EDITION ANALYTICS provision for credit losses of $73.2 billion, with the majority of the losses associated with loans originated between 2005 and 2008, according to the report. As of December 31, 2011, loans originated in 2005 to 2008 represented 32 percent of the single-family port- folio, while loans originated after 2008 accounted for 51 percent. Since 2009, Freddie Mac has funded approximately one out of every four single-family home loans, according to the report. In addition, over the same time period, Freddie Mac, Fannie Mae, and Ginnie Mae collectively have guaranteed about 90 percent of single-family loans originated in the U.S. CRE Loans Show Steady Rise NEW ENGLAND-BASED DEBTX REVEALS NEW SURVEY DEMONSTRATING INCREASES FOR COMMERCIAL REAL ESTATE. MASSACHUSETTS // The Debt Exchange (DebtX) recently re- leased its commercial loan report for January, and the findings indicate that loan values are con- tinuing to rise steadily, following the trend of the past 12 months. According to data from DebtX, values for commercial real estate (CRE) loans stood at 79.8 percent to end the first month of the year. Evaluating the aggregate value of CRE loans priced by DebtX that collateralize, commercial mortgage- backed securities (CMBS) climbed to 86.4 percent to close January. The statistics represent an uptick from December's totals, which rank in at 85.3 percent. Commenting on January's results, DebtX's CEO, Kingsley Greeland, said, "CRE loan prices rose again in January and are now up 8 percent from a year ago. CRE loan prices trended upward in January as Treasury yields and credit spreads declined." For January, DebtX priced 51,399 CRE loans with a $616.1 billion aggregate principal bal- ance. The company applied a price evaluation based on 10 years of data accumulated from loan sales executed by DebtX. The DebtX CMBS loan pricing analysis is part of the company's service to loan buyers, which provides insights on six compo- nents, including non-performing loan sale prices, bank watch, sec- ondary loan market commentary, CMBS loan collateral prices, and secondary loan market liquidity. The data, known as DXMarket Data, is available via the com- pany's subscription service. as the We Buy Ugly Houses company) and Local Market Monitor identifies the best 100 U.S. markets for investing in rental property. It shows California with a commanding lead, boasting 12 markets among the top 100. Opportunities are noted nationwide, though. Nine Florida markets made the list, seven in Texas, and five in North Carolina. From Honolulu, Hawaii, to Providence, Rhode to jump immediately into every market," said Ingo Winzer, president and founder of Local Market Monitor. David Hicks, HomeVestors' co-president, says while there are good investment opportunities in every one of the top 100 markets, investors would be wise to take into account other dynamics for the ideal timing to enter the market. He cites job growth as a key indicator of a market prime for investment. Based on the companies' first- quarter rankings and job growth rates, Hicks says the following markets are ideal for short-term, immediate investments: Tampa-St. Petersburg, Florida Daytona Beach, Florida Fort Myers, Florida Phoenix-Scottsdale, Arizona Bakersfield California Boise City, Idaho Warren, Michigan Grand Rapids, Michigan Rochester, New York Dallas-Fort Worth, Texas "Prices are close to a bottom and the local economy is growing well" in these markets, according to Hicks. For those investors eyeing future opportunities, Winzer advises to wait until at least next year to scoop up rental properties in: Western State Boasts Booming Rental Market ON THE LEFT COAST, THE RENTAL MARKET IS HEALTHY, BOOSTING OPPORTUNITIES FOR INVESTMENT. CALIFORNIA // The housing cri- sis cast a dark shadow over the Golden State, but for investors looking to purchase rental prop- erties, it's a beacon of light. A new report released by HomeVestors of America (known Island, a total of 39 states and the District of Columbia are represented among the 100 hottest rental markets. HomeVestors and Local Market Monitor have developed quarterly rankings of the markets primed for rental investing based on the expected future relative returns of single-family homes. The companies' latest results stem from data gathered in the first quarter of 2012. "Timing is everything, and with the long-term trends in their favor, investors don't need Las Vegas, Nevada Reno, Nevada Orlando, Florida Fort Lauderdale, Florida Sarasota, Florida Jacksonville, Florida West Palm Beach, Florida Atlanta, Georgia Detroit, Michigan The two executives note that trends favoring investors include a growing economy that is forcing rents higher and housing prices that continue to fall because of oversupply and inflation. The full list of the "Best 100 U.S. Markets to Invest in Rental Property" is available on the HomeVestors website. THE M REPORT | 67 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET

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