Nassau Region

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					                                        NY: Nassau-Suffolk Area
                                 Metro Market Report, First Quarter 2009

        Today's Market…
                           Median Price (Red Line) and One-year Price Growth                                                                   1,000s
                 40%                                                                                                                             $600
                 30%                                                                                                                                $500
                 20%
                                                                                                                                                    $400
                 10%
                                                                                                                                                    $300
                  0%
                                                                                                                                                    $200
                 -10%
                 -20%                                                                                                                               $100

                 -30%                                                                                                                               $0
                        2002 -   Q3    2003 -    Q3    2004 -    Q3    2005 -    Q3       2006     Q3        2007     Q3    2008 -   Q3    2009 -
                         Q1             Q1              Q1              Q1                - Q1               - Q1            Q1             Q1



                                                                 NY: Nassau                      U.S.                                Local Trend
Price Activity
          Current Median Home Price (2009 - Q1)                   $376,700                   $167,633
                                                                                                                           Prices are down compared to a year
                    1-year Appreciation (2009 - Q1)                -18.6%                      -8.8%                          earlier and continue to weaken
                    3-year Appreciation (2009 - Q1)                 20 9%
                                                                   -20.9%                      22 7%
                                                                                              -22.7%
          3-year (12-quarter) Housing Equity Gain                 -$99,400                   -$49,267
                                                                                                                       The decline has wiped out most of the
                  7-year (28 q) Housing Equity Gain               -$45,500                   -$31,367                  equity gained during the housing boom
                  9-year (36 q) Housing Equity Gain                $50,500                      $633



                                      State Home Sales (Red Line) and Sales Growth                                                                  1,000s
                  20%                                                                                                                                   350
                  15%
                                                                                                                                                         300
                  10%
                   5%                                                                                                                                    250
                   0%                                                                                                                                    200
                  -5%
                 -10%                                                                                                                                    150
                 -15%                                                                                                                                    100
                 -20%
                                                                                                                                                         50
                 -25%
                 -30%                                                                                                                                    0
                        2002 -   Q3     2003 -    Q3    2004 -    Q3      2005       Q3     2006        Q3     2007        Q3   2008 -    Q3   2009 -
                         Q1              Q1              Q1               - Q1              - Q1               - Q1              Q1             Q1



Home Sales and Construction Growth                               New York                        U.S.
          *State Existing Home Sales (2009 - Q1)                      -23.1%                     -8.2%                Weak compared to recent state average
*versus same quarter, year-ago



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    Local Supply and Demand…
Local Economic Outlook                               NY: Nassau         U.S.
               1-year Job Additions (2009 - Apr)      -33,900       Not Comparable      Weak for this market and could impact
               3-year Job Additions (2009 - Apr)       -8,100       Not Comparable                     demand
        State Economic Activity Index                New York           U.S.
                  12-month change (2009 - Apr)         -9.7%            -3.2%           Contracting faster than the rest of the
                  36-month change (2009 - Apr)         -6.0%             0.9%                           nation



Local Fundamentals                                   NY: Nassau         U.S.
             1-year (12 month) Job Growth Rate         -2.7%            -1.6%             Weak compared to other markets
             3-year (36 month) Job Growth Rate         -0.7%             0.7%              Weaker than most metro areas
   1-year Job Gain to New Single-Family Homes            NA               -0.1                         NA
     3-year Job Gain to New Single-Family Homes          NA               4.7                          NA
   ** Single-Family Housing Permits (2009 - Apr)         NA            -42.2%                          NA
**Rolling 12-month sum vs. a year ago



                       Affordability - Local Mortgage Servicing Cost-to-Income
                                        (Historical Average Shown in Red Dashed Line)
              30%

              25%

              20%

              15%

              10%

               5%

               0%




Monthly Mortgage Payment to Income                   NY: Nassau         U.S.
                             Ratio for all of 2008     22.1%            20.7%                  Good local affordability
                             Ratio for 2009 - Q1       18.7%            17.7%              Improving and historically strong
                        Historical Local Average       23.0%            23.2%                Good relative to the nation




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                       Recent Trend ‐ Local Mortgage Servicing Cost to Income
                                     (Historical Average Shown in Red Dashed Line)
             25.0%

             20.0%

             15.0%

             10.0%

              5.0%

              0.0%
                         2007 - Q4       2008 - Q1    2008 - Q2    2008 - Q3     2008 - Q4      2009 - Q1




Median Home Price to Income                        NY: Nassau       U.S.
                                 Ratio for 2008       7.7             7.2               Good Relative to Local History
                        Historical Local Average      8.2             7.2              Weak Compared to Nation Average


                          Ratio of Local Median Home Price to Local Average Income
                                       (Historical Average shown in Red Dashed Line)
                10.0
                 9.0
                 8.0
                 7.0
                 6.0
                 5.0
                 4.0
                 3.0
                 2.0
                 1.0
                 0.0




                                                            3
  Looking Deeper….
                               State Total Foreclosure Rate vs. U.S Average
                                            (U.S. Average in Red Dashed Line)
                4.5%
                4.0%
                3.5%
                3.0%
                2.5%
                2.0%
                1.5%
                1.0%
                0.5%
                0.0%




              Source: Mortgage Bankers' Association



Monthly Market Data - February 2009               NY: Nassau           U.S.
                           PRIME Market Share          NA              84.5%          NA
            SUBPRIME and Alt-A Market Share            NA              15.5%          NA

              Foreclosure + REO Rate
        TOTAL F    l            R t                   NA                1.7%
                                                                        1 7%          NA

TOTAL Foreclosure + REO Rate (same period, 1-
                                                      NA                0.8%          NA
                year earlier )

      SUBPRIME Foreclosure + REO Rate                 NA               14.6%          NA

  SUBPRIME Foreclosure + REO Rate (same
                                                      NA               11.6%          NA
          period, 1- year earlier)

        ALT-A Foreclosure + REO Rate                  NA               12.1%          NA

ALT-A Foreclosure + REO Rate (same period, 1-
                                                      NA                5.5%          NA
                year earlier)
Monthly Foreclosure data provided by First American CoreLogic, LoanPerformance data




                                                              4
The Mortgage Market

                 30-year Fixed Mortgage Rate and Treasury Bond
      8.0                                                                                              3.00
      7.0                                                                                              2.50
      6.0                                                                                              2.00
      5.0                                                                                              1.50
      4.0                                                                                              1.00
      3.0                                                                                              0.50
      2.0                                                                                              0.00
            Q4   Q2    Q4     Q2     Q4     Q2   Q4   Q2   Q4       Q2   Q4   Q2   Q4   Q2    Q4


                      Spread (right axis)             30-Year FRM              10-Year Treasury Bond




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