Presentation to: February 24, 2010

Presentation to:

February 24, 2010

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CWCAM – World Class Special Servicing and Surveillance

• Part of CWFS family of companies

• CWCAM is the 2nd largest U.S. loan special servicing platform.

• Highest rating from Fitch (CSS1) and highest ranking from S&P (Strong).

• The asset management group is the named special servicer on 120 CMBS transactions backed by approximately $161 billion of commercial mortgage loans as well as $3 billion in non-securitized loans for institutional clients (approximately 13,000 loans.)

• The performing loan management group performs surveillance activities on 9,500 ($110 billion) of CMBS loans.

• The Washington, DC office is the primary location of the surveillance, special servicing, bond administration and analytics divisions. Employees are also located in Dallas, New York and Needham.

• The team employs approximately 127 professionals dedicated full time to monitoring investments, resolving distressed situations, maximizing asset value and analyzing cash flow.

• Part of CWFS family of companies

• CWCAM is the 2nd largest U.S. loan special servicing platform.

• Highest rating from Fitch (CSS1) and highest ranking from S&P (Strong).

• The asset management group is the named special servicer on 120 CMBS transactions backed by approximately $161 billion of commercial mortgage loans as well as $3 billion in non-securitized loans for institutional clients (approximately 13,000 loans.)

• The performing loan management group performs surveillance activities on 9,500 ($110 billion) of CMBS loans.

• The Washington, DC office is the primary location of the surveillance, special servicing, bond administration and analytics divisions. Employees are also located in Dallas, New York and Needham.

• The team employs approximately 127 professionals dedicated full time to monitoring investments, resolving distressed situations, maximizing asset value and analyzing cash flow.

CWCAM’s capabilities as a

rated special servicer place us in a position to effectively take

over the management of any transaction.

CWCAM’s capabilities as a

rated special servicer place us in a position to effectively take

over the management of any transaction.

Note: Figures as of June 30, 2009.

CWCapital Asset Management

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CW Financial Services LLC• Full service, vertically integrated commercial real estate finance and

investment management company

Lending Operations

CWCapital LLC

• Commercial mortgage lender for floating rate 1st mortgage, conduit, mezzanine, Fannie Mae, Freddie Mac & HUD loan products

• Capital Markets expertise, sponsoring securitizations and CDO vehicles

• Primary servicer for a significant commercial mortgage loan portfolio over $11 billion.

Investment Management

CWCapital Investments LLC

• Approximately $11.2 billion in assets under management

• Invests in subordinate CMBS, CDO equity, structured 1st mortgage loans, B-Notes and mezzanine debt

• Investment manager for a series of investment vehicles, including separate accounts, funds and CDO vehicles

Distressed Loan Services

CWCapital Asset Management LLC

(CWCAM)

Corporate Structure

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Non-Securitized Portfolio Loans

CDOsMezz, B-Note

CMBS Conduit Loans

CWCapital Asset Management LLC (“CWCAM”) is a premier asset management platform dedicated to maximizing returns on distressed commercial mortgage investments. With over 100 employees in 6 different offices, our mortgage loan work out professionals and real estate specialists provide tailored services to a diverse set of clients.

CWCapital Asset Management LLC

Sub-Performing Loans Defaulted Loans REO

CWCapital Asset Management LLC

Current MarketCurrent Market

Volatile ConditionsVolatile Conditions

Lack of LiquidityLack of Liquidity

Complex Loan StructuresComplex Loan Structures

New Investment Opportunities

New Investment Opportunities

Delinquencies increasing, real estate values decreasing.

Credit crunch, maturing loans, I/O loans converting.

Multiple participants, B-Notes, mezz, bridge, construction.

Distressed Debt and REO Acquisitions.

Increased Need for Special Servicing

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• Banks and thrifts set delinquency pace due to high concentration of recently originated construction loans

• CMBS delinquencies are rising rapidly on stabilized and transitional assets that were aggressively underwritten and leveraged

• Life Company and GSE default levels remain low due to the retained risk by originators and strict underwriting guidelines

Commercial Real Estate Delinquencies Trending UpCommercial Real Estate Delinquencies Trending Up

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

1996 --Q1

1997 --Q1

1998 --Q1

1999 --Q1

2000 --Q1

2001 --Q1

2002 --Q1

2003 --Q1

2004 --Q1

2005 --Q1

2006 --Q1

2007 --Q1

2008 --Q1

2009 --Q1

CMBS (30+ days and REO)

Life Companies (60+ days)

Fannie Mae (60+ days)

Freddie Mac (60+/90+ days)

Banks & Thrifts (90+ days)

Source: Mortgage Bankers Association

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• The massive dislocation in the financial markets has caused loan originations to plummet

• Banks, which have traditionally provided up to half of the mortgage capital in the U.S., have dramatically reduced new lending as bank balance sheets are saddled with legacy assets

• The CMBS lending market, which provided a takeout to the bank sector, has virtually closed, taking over $200 billion of loan origination capacity out of the market

• The lending currently provided by banks and insurance companies is limited to low leverage loans collateralized by the highest quality assets

• The Government Sponsored Enterprises (GSEs) continue to lend heavily in the multifamily sector and remain the dominant source of liquidity for that asset class

• The massive dislocation in the financial markets has caused loan originations to plummet

• Banks, which have traditionally provided up to half of the mortgage capital in the U.S., have dramatically reduced new lending as bank balance sheets are saddled with legacy assets

• The CMBS lending market, which provided a takeout to the bank sector, has virtually closed, taking over $200 billion of loan origination capacity out of the market

• The lending currently provided by banks and insurance companies is limited to low leverage loans collateralized by the highest quality assets

• The Government Sponsored Enterprises (GSEs) continue to lend heavily in the multifamily sector and remain the dominant source of liquidity for that asset class

Commercial Mortgage Lenders Remain on the Sidelines

Source: Federal Reserve/MBA

Source: Federal Reserve/MBA

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Selected Statistics

Source: Realpoint

SS Special Trends Property Type

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Selected Specially Serviced Loan Portfolio Statistics

Alaska

Texas

Utah

Montana

California

Arizona

Idaho

Nevada

Oregon

Iowa

ColoradoKansas

Wyoming

New Mexico

Missouri

Minnesota

Nebraska

Oklahoma

South Dakota

Washington

Arkansas

North Dakota

LouisianaHawaii

IllinoisOhio

Florida

GeorgiaAlabama

Wisconsin

Virginia

Indiana

Michigan

Mississippi

Kentucky

Tennessee

Pennsylvania

NorthCarolina

SouthCarolina

WestVirginia

New Jersey

Maine

New York

Vermont

Maryland

New Hampshire

Connecticut

Delaware

MassachusettsRhode Island

•>$500 Million

•$300 - 500 Million

•$100 - 300 Million

•<$100 Million

• No SS Loans

Approximated based upon loans managed through the CAMS System, 12-31-2009

Special Servicing Portfolio (Assets Managed)State Concentrations by Current UPB

Note: UPB = Unpaid Principal Balance

60-days+ Delinquencies Top 10 States •Arizona - 14%•Nevada- 14%•Rhode Island - 13%•Alabama- 12%•Hawaii - 9%•Nebraska - 9%•Michigan - 8%•New Mexico - 6%•Florida- 6%•Kentucky- 6%

60-days+ Delinquencies By Property Type •Lodging- 11%•Multifamily - 7%•Mixed Use- 6%•Mobile Home Park - 6%•Retail - 5%

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•

Moves Into Surveillance Loaded into System Monitor Regularly Review Master Servicer watch list Analyze Operating Statements and site inspection reports Conduct Market Research

Placed on Watchlist If issue identified, classified as probable or possible transfer Monthly calls with Master Servicer Monthly Summary with Sr. Management

Loan Transferred to Special Servicing Borrower contacted Pre-Negotiation letter Site Inspection Preliminary budget Discussed at Special Servicing Credit Committee Review for breach claim Third party reports ordered

REO Plan and Budget approved and implemented Property manager and/or broker engaged Inspections conducted regularly Property may be immediately listed for sale, cleaned-up and sold, or repositioned

90th Day Assess Value (Appraisal, BOV, Internal analysis) Strategy determined based on NPV analysis Budget approved Trust impact analyzed

REO Sold Final Recovery Determination Proceeds passed through to trust

Placed on Probable/Possible Transfer ListBegin to determine asset valueBOVs requestedAsset Status Report started

Loan AcquiredCMBS or CDO Asset Participate in underwriting and pricing of CMBS/ CDO deals.

Liquidated, Corrected, Foreclosed Loan is…corrected and returned… …or modified and returned and placed back on watchlist… …or paid off or sold… …or transferred to REO Value updated periodically Inspections conducted regularly Final Recovery Determination Proceeds passed through to trust

Hypothetical Life Of a Loan: Special Servicer Viewpoint

The Life of a Loan

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Maximized Returns

In-House Specialties:

Multi/Condo · Hotel · Retail

Office/Industrial · Residential

Business lines:

Performing Loans

Non Performing Loans

REO · Acquisitions

CWCAM integrates its

business lines and takes advantage

of its robust infrastructure and property expertise

to maximize returns for its

clients.

Proprietary Technology System – data repository, analytic system, management tool

Dedicated team of legal, finance and compliance personnel

Property expertise – business lines tap into the in-house specialties

Business lines are integrated and flexible to adapt to changing conditions

Infrastructure to support the business lines

Maximizing Returns

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