8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 5, 2010

Walter Investment Management Corp.

(Exact name of registrant as specified in its charter)

Maryland	6789	13-3950486
(State or other jurisdiction of incorporation	(Primary Standard Industrial Classification	(I.R.S. Employer Identification No.)
or organization)	Code Number)

3000 Bayport Drive, Suite 1100
Tampa, FL 33607
(813) 421-7600

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

2

Item 2.02 Results of Operations and Financial Condition; Item 7.01 Regulation FD Disclosure.

     On May 5, 2010, Walter Investment Management Corp. (“WIMC”) issued a press release announcing its first quarter 2010 results. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K. The Company also issued The WIMC Review — 1^st Quarter 2010, a copy of which is attached as Exhibit 99.2 to this current report on Form 8-K.

     The information contained in this Item 2.02 and Item 7.01 and the attached Exhibits 99.1 and 99.2 are being furnished to and not filed with the Securities and Exchange Commission, and shall not be incorporated by reference into a registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	Description
99.1	Press Release dated May 5, 2010
99.2	The WIMC Review — 1st Quarter 2010

3

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WALTER INVESTMENT MANAGEMENT CORP.

Date: May 5, 2010	By:	/s/ Kimberly A. Perez
		Kimberly A. Perez
		Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE
May 5, 2010

Investor and Media Contact: Whitney Finch
Director of Investor Relations
813.421.7694
wfinch@walterinvestment.com

WALTER INVESTMENT MANAGEMENT CORP. ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS

(Tampa, Fla.) – Walter Investment Management Corp. (NYSE Amex: WAC) (“Walter Investment” or the “Company”) today announced results for the quarter ended March 31, 2010.

The Company reported income before income taxes for the quarter ended March 31, 2010 of $8.2 million, or $0.31 per diluted share as compared to income before income taxes for the fourth quarter 2009 of $8.1 million, or $0.32 per diluted share. Net income for the first quarter of 2010 was $8.1 million, or $0.30 per diluted share as compared to net income for the fourth quarter 2009 of $8.5 million, or $0.34 per diluted share.

Mark J. O’Brien, Walter Investment’s Chairman and CEO, said, “We are pleased with the strong results from our existing portfolio, and are confident we are on a path to grow our core business as we begin to deploy the capital raised in the fourth quarter of 2009.”

“We believe the opportunities to acquire attractive loan pools are improving, as evidenced by our recently announced purchase of performing residential loans. We remain committed to prudently deploying our capital to acquire assets which meet our investment criteria and return objectives.”

First Quarter 2010 Dividend Declaration

On April 30, 2010, the Board of Directors of the Company declared a dividend of $0.50 per share to shareholders of record as of May 14, 2010, which will be paid on May 28, 2010.

First Quarter 2010 Operating Highlights

• Reflecting strong performance and favorable seasonal trends, consolidated delinquencies were 4.21 percent at March 31, 2010, as compared to 5.44 percent at December 31, 2009 and 4.59 percent at March 31, 2009. Walter Investment’s delinquency rates (adjusted to reflect comparable methodologies) remain better than the most recently released Mortgage Banker’s Association’s subprime industry survey average by more than 50 percent.

• On an annualized basis, the asset yield for the quarter ended March 31, 2010 was 10.09 percent and the Company’s interest cost on outstanding debt was 6.78 percent. The net interest margin for the quarter, which is net interest income as a percentage of average earning assets, was 4.93 percent, slightly lower than the first quarter of last year, due to lower outstanding balances and lower prepayment speeds.

• Loss severities were 11.9 percent in the first quarter, as compared to 12.1 percent for the fourth quarter of 2009 and 16.8 percent in the first quarter of 2009.

• During the first quarter of 2010, the Company paid dividends declared on December 15, 2009 of $12.8 million to its shareholders.

3000 Bayport Drive, Suite 1100, Tampa, Florida 33607
813,421,7600     www.walterinvestment.com

Charles E. Cauthen, Walter Investment’s President and COO, said, “As anticipated, our field servicing organization delivered excellent results from our existing portfolio in the first quarter, laying a strong foundation for the year ahead. As we add additional assets to our servicing platform, we must continue to deliver superior results and solid returns to our shareholders through our high touch origination and servicing model and our deeply experienced personnel.”

First Quarter 2010 Financial Summary

Net interest income for the quarter was $20.4 million as compared to $22.7 million in the year-ago period driven by lower outstanding balances and lower voluntary prepayment speeds.

The provision for loan losses was $3.2 million, compared with $4.4 million in the year ago period. The decrease from the year earlier period was primarily driven by improved loss severities, coupled with a lower frequency of default on the ARM portfolio.

Non-interest income was $3.5 million in the first quarter of 2010 as compared to $3.2 million in the prior year period.

Non-interest expenses increased from $10.2 million in the first quarter of 2009 to $12.4 million for the first quarter of 2010. The increase included $1.2 million of stock compensation expense and $0.7 million of severance expense associated with management changes, in addition to increased costs associated with being a stand-alone public company, including salaries and benefits, legal, professional, technology and communications costs.

First Quarter 2010 Liquidity Summary

At March 31, 2010, the Company had $96.3 million of cash. The Company had no borrowings under its $15 million revolving credit facility at March 31, 2010.

Purchase of Pool of Loans

On April 14, 2010, the Company entered into a definitive agreement to purchase a pool of 100% performing, fixed-rate residential loans on single-family, owner occupied residences located within the Company’s existing southeastern United States geographic footprint. The purchase closed on April 19, 2010, utilizing $11.1 million of proceeds from its equity offering.

Conference Call Webcast

Members of the Company’s leadership team will discuss Walter Investment’s first quarter results and other general business matters during a conference call and live webcast to be held on Thursday, May 6, 2010, at 10 a.m. Eastern Time. To listen to the event live or in an archive which will be available for 30 days, visit the Company’s website at www.walterinvestment.com.

About Walter Investment Management Corp.

Walter Investment Management Corp. is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets. Based in Tampa, Fla., the Company currently has $1.9 billion of assets under management and annual revenues of approximately $190 million. The Company is structured as a real estate investment trust (“REIT”) and employs approximately 220 people. For more information about Walter Investment Management Corp., please visit the Company’s website at www.walterinvestment.com.

Safe Harbor Statement

Certain statements in this release and in our public documents to which we refer, contain or incorporate by reference “forward-looking” statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Walter Investment Management Corp. is including this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical fact are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal” and similar expressions are intended to identify

forward looking statements. Forward-looking statements are based on the Company’s current belief, intentions and expectations; however, forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements, to differ materially from those reflected in the statements made or incorporated in this release. Thus, these forward-looking statements are not guarantees of future performance and should not be relied upon as predictions of future events. These risks and uncertainties are contained in Walter Investment Management Corp.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 2, 2010 and Walter Investment Management Corp.’s other filings with the SEC.

All forward looking statements set forth herein are qualified by this cautionary statement and are made only as of May 5, 2010. The Company undertakes no obligation to update or revise the information contained herein, including without limitation any forward-looking statements whether as a result of new information, subsequent events or circumstances, or otherwise, unless otherwise required by law.

Walter Investment Management Corp. and Subsidiaries
Consolidated Statements of Income

(dollars in thousands, except share and per share amounts)

	For the Three Months Ended
	March 31,
	2010		2009
Net interest income:
Interest income	$	41,628	$	45,829
Less: Interest expense		21,274		23,089
Total net interest income		20,354		22,740
Less: Provision for loan losses		3,190		4,376
Total net interest income after provision for loan losses		17,164		18,364
Non-interest income:
Premium revenue		2,691		3,065
Other income, net		760		160
Total non-interest income		3,451		3,225
Non-interest expenses:
Claims expense		912		1,289
Salaries and benefits		6,981		4,285
Legal and professional		899		704
Occupancy		345		335
Technology and communication		728		818
Depreciation and amortization		91		78
General and administrative		2,365		1,533
Other expense		51		337
Related party — allocated corporate charges		—		853
Total non-interest expenses		12,372		10,232
Income before income taxes		8,243		11,357
Income tax expense		131		4,155
Net income	$	8,112	$	7,202
Basic earnings per common and common equivalent share	$	0.30	$	0.36
Diluted earnings per common and common equivalent share	$	0.30	$	0.36
Weighted average common and common equivalent shares outstanding — basic		26,343,279		19,871,205
Weighted average common and common equivalent shares outstanding — diluted		26,403,281		19,871,205

Walter Investment Management Corp. and Subsidiaries
Consolidated Balance Sheets

(dollars in thousands, except share amounts)

	March 31,		December 31,
	2010		2009
ASSETS
Cash and cash equivalents	$	96,302	$	99,286
Restricted cash		8,901		8,963
Restricted cash of securitization trusts		41,324		42,691
Receivables, net		3,542		3,052
Residential loans, net of allowance for loan losses of $3,384 and $3,460, respectively		327,775		333,636
Residential loans of securitization trusts, net of allowance for loan losses of $13,940 and $14,201, respectively		1,292,561		1,310,710
Subordinate security		1,837		1,801
Real estate owned		25,284		21,981
Real estate owned of securitization trusts		36,667		41,143
Deferred debt issuance costs		18,137		18,450
Other assets		5,073		5,961
Total assets	$	1,857,403	$	1,887,674
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	477	$	13,489
Accounts payable of securitization trusts		555		556
Accrued expenses		25,438		28,296
Deferred income taxes, net		161		173
Mortgage-backed debt of securitization trusts		1,244,379		1,267,454
Accrued interest of securitization trusts		8,555		8,755
Other liabilities		776		767
Total liabilities		1,280,341		1,319,490
Stockholders’ equity:
Preferred stock, $0.01 par value per share:
Authorized - 10,000,000 shares Issued and outstanding - 0 shares at March 31, 2010 and December 31, 2009, respectively		—		—
Common stock, $0.01 par value per share:
Authorized - 90,000,000 shares Issued and outstanding - 25,694,073 and 25,642,889 shares at March 31, 2010 and December 31, 2009, respectively		257		256
Additional paid-in capital		123,471		122,552
Retained earnings		451,545		443,433
Accumulated other comprehensive income		1,789		1,943
Total stockholders’ equity		577,062		568,184
Total liabilities and stockholders’ equity	$	1,857,403	$	1,887,674

Walter Investment Management Corp. and Subsidiaries
Operating Statistics
(Unaudited)

(dollars in thousands, except share amounts)

	2010			2009			2009
	Q1			Q4			Q1
30+ Delinquencies (1)		4.21	%		5.44	%		4.59	%
90+ Delinquencies (1)		2.89	%		3.37	%		3.02	%
Provision for Losses	$	3.2		$	4.0		$	4.4
Net Charge-offs	$	3.5		$	4.1		$	4.9
Charge-off Ratio (2)		0.86	%		0.98	%		1.10	%
Allowance for Losses	$	17.3		$	17.7		$	18.5
Allowance for Losses Ratio (3)		1.06	%		1.06	%		1.05	%
30+ Delinquencies (1)	$	75.4		$	98.7		$	86.2
REO (Real Estate Owned)		62.0			63.1			50.9
TIO (Taxes, Insurance, Escrow and Other Advances)		16.4			16.3			15.0
Nonperforming Assets (Delinquencies + REO + TIO)	$	153.8		$	178.1		$	152.1
Nonperforming Assets Ratio (4)		8.24	%		9.40	%		7.63	%
Default Rate (5)		5.68	%		6.15	%		5.06	%
Fixed Rate Mortgages		5.55	%		5.84	%		4.58	%
Adjustable Rate Mortgages		14.64	%		27.55	%		33.96	%
Loss Severity (6)		11.85	%		12.08	%		16.80	%
Fixed Rate Mortgages		10.43	%		10.65	%		15.50	%
Adjustable Rate Mortgages		39.02	%		42.42	%		40.30	%
Number of Accounts Serviced (7)		34,724			35,236			37,408
Total Portfolio (8)	$	1,867.4		$	1,895.2		$	1,993.6
ARM Portfolio (9)	$	25.6		$	26.7		$	31.8
Prepayment Rate (Voluntary CPR)		2.64	%		2.95	%		3.56	%
Book Value per Share (10)	$	22.46		$	22.16		NM
Debt to Equity Ratio		2.16:1			2.23:1		NM

(1)	Delinquencies are defined as the percentage of principal balances outstanding which have monthly payments over 30 days past due. The calculation of delinquencies excludes from delinquent amounts those accounts that are in bankruptcy proceedings that are paying their mortgage payments in contractual compliance with bankruptcy court approved mortgage payment obligations.
(2)	The charge-off ratio is calculated as annualized net charge-offs, divided by average residential loans before the allowance for losses.
(3)	The allowance for losses ratio is calculated as period-end allowance for losses divided by period-end residential loans before the allowance for losses.
(4)	The nonperforming assets ratio is calculated as period-end non-performing assets, divided by period-end principal balance of residential loans plus REO and TIO.
(5)	Default rate is calculated as the annualized balance of repossessions for the quarter divided by the average total balance of the portfolio for the quarter.
(6)	Loss severities are calculated as the loss on sale of REO properties divided by the carrying value of REO.
(7)	Includes REO accounts.
(8)	Total portfolio includes the principal balance of residential loans, REO and TIO.
(9)	ARM portfolio includes the principal balance of adjustable rate residential loans and REO resulting from defaulted adjustable rate residential loans.
(10)	Book Value per share is calculated by dividing the Company’s equity by total shares issued and outstanding of 25,694,073.
NM	Not Meaningful

EX-99.2

Exhibit 99.2

WIMC Review 1st Quarter 2010

2 Table of Contents Safe Harbor Statement..................................... 3 Introduction............................................................... 4 Balance Sheet........................................................ 5 Income Statement.............................................. 8 Portfolio Metrics........................................................ 12

3 Safe Harbor Statement Certain statements in this presentation and in our public documents to which we refer, contain or incorporate by reference "forward-looking" statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Walter Investment Management Corp. is including this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical fact are forward-looking statements. Words such as "expect," "believe," "anticipate," "project," "estimate," "forecast," "objective," "plan," "goal," "may," "should," "will" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on the Company's current belief, intentions and expectations; however, forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements, to differ materially from those reflected in the statements made or incorporated in this release. Thus, these forward-looking statements are not guarantees of future performance and should not be relied upon as predictions of future events. These risks and uncertainties are contained in Walter Investment Management Corp.'s Annual Report on Form 10-K dated March 2, 2010, and Walter Investment Management Corp.'s other filings with the Securities and Exchange Commission. In particular (but not by way of limitation), the following important factors and assumptions could affect the Company's future results and could cause actual results to differ materially from those expressed in the forward-looking statements: local, regional, national and global economic trends and developments in general, and local, regional and national real estate and residential mortgage market trends and developments in particular; the availability of suitable qualifying investments for the proceeds of the Company's secondary offering and risks associated with any such investments we may pursue; the availability of additional investment capital and suitable qualifying investments, and risks associated with the expansion of our business activities; risks associated with the expansion of our business activities, including risks associated with expanding our business outside of our current geographic footprint and/or expanding the scope of our business to include activities not currently undertaken by our business; limitations imposed on the Company's business due to its REIT status and the Company's continued qualification as a REIT for federal income tax purposes; financing sources and availability, and future interest expense; fluctuations in interest rates and levels of mortgage prepayments; increases in costs and other general competitive factors; natural disasters and adverse weather conditions, especially to the extent they result in material payouts under insurance policies placed with our captive insurance subsidiary; changes in federal, state and local policies, laws and regulations affecting our business, including, without limitation, mortgage financing or servicing, and/or the rights and obligations of property owners, mortgagees and tenants; the effectiveness of risk management strategies; unexpected losses resulting from pending, threatened or unforeseen litigation or other third party claims against the Company; the ability or willingness of Walter Energy and other counterparties to satisfy its/their material obligations under its/their agreements with the Company; the Company's continued listing on the NYSE Amex; uninsured losses or losses in excess of insurance limits and the availability of adequate insurance coverage at reasonable costs; the integration of the former Hanover Capital Mortgage Holdings, Inc. business into that of Walter Investment Management, LLC and its affiliates (the "Merger"), and the realization of anticipated synergies, cost savings and growth opportunities from the Merger; future performance generally; and other presently unidentified factors. This WIMC Review contains or references certain non-GAAP financial measures which are intended to assist in the evaluation of certain financial information provided by the Company. Information regarding non-GAAP financial measures and the reconciliation of them to GAAP measures are provided within this document. The financial information presented is unaudited. Should any of the financial information upon which a forward-looking statement is based change upon audit, the forward-looking statement may also change. All forward looking statements set forth herein are qualified by these cautionary statements and are made only as of the date hereof. The Company undertakes no obligation to update or revise the information contained herein, including without limitation any forward-looking statements whether as a result of new information, subsequent events or circumstances, or otherwise, unless otherwise required by law.

4 Introduction Note to Readers: Results for the three months ended March 31, 2010 for Walter Investment Management Corp. ("WIMC") were filed with the Securities and Exchange Commission ("SEC") in a Form 10-Q on May 5, 2010. Results for the year ended December 31, 2009 were filed with the SEC in a Form 10-K on March 2, 2010. Results for the quarters ended September 30, 2009 and June 30, 2009 were filed with the SEC in a Form 10-Q on November 12, 2009 and August 14, 2009, respectively. Results as of and for the three year period ended December 31, 2008 and the quarter ended March 31, 2009 for Walter Investment Management, LLC ("WIM LLC"), the accounting predecessor to WIMC, were presented in a Form 8-K/A on July 10, 2009. Results for the quarter ended March 31, 2009 are available for Hanover Capital Mortgage Holdings Inc. ("Hanover") in their Form 10-Q filed with the SEC on May 15, 2009. These filings and our earnings press releases provide information about our financial results in accordance with generally accepted accounting principles (GAAP). We urge you to review these documents, which are available through our web site, www.walterinvestment.com. This document, called the WIMC Review, provides supplemental information about WIMC through a discussion of many GAAP, as well as non-GAAP measures. We believe that these figures provide additional insight into WIMC's business and future prospects. In each case in which we discuss a non-GAAP measure, you will find an explanation of how it has been calculated, why we think the figure is important, and a reconciliation between the GAAP and non-GAAP figures. We hope you find the WIMC Review helpful to your understanding of our business.

5 Balance Sheet The following table reflects a comparison of the GAAP balance sheets as of March 31, 2010 and December 31, 2009.

6 Balance Sheet Breakdown Net Assets The following table provides a breakdown of GAAP Net Assets between the securitized (encumbered) net assets and the unencumbered net assets (in millions). GAAP Reconciliation for 3/31/10 (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (1) Securitized residential loans liabilities in the above table consist of the following GAAP balances: mortgage-backed debt of $1,244.4 M, accounts payable of $0.5 M and accrued interest of $8.6 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M. (2) Other assets in the above table consist of the following GAAP balances: restricted cash of $8.9 M, receivables of $3.5 M, subordinated security of $1.8 M, and other assets of $5.2 M. Other liabilities in the above table consist of the following GAAP balances: accounts payable of $0.5 M, accrued expenses of $25.4 M, deferred income taxes of $0.2 M, and other liabilities of $0.7 M.

7 Mortgage Portfolio The following table provides a breakout of certain balances related to the residential loan portfolio by securitization trust and by vintage category at March 31, 2010.

8 GAAP Income Statement The table below provides a summary of GAAP income for the three months ended March 31, 2010 and 2009. Taxable income is pre-tax income as calculated for tax purposes. Taxable income differs from GAAP income. REIT taxable income is the primary determinant of the minimum amount of dividends that must be distributed in order to maintain the tax status as a REIT. REIT taxable income is pre-tax profit, as calculated for tax purposes, excluding taxable income earned at taxable subsidiaries. REITs are required to distribute at least 90% of their REIT taxable income as dividends. In order to provide comparability between periods presented, certain amounts have been reclassified from the previously reported unaudited consolidated financial statements to conform to the unaudited consolidated financial statement presentation of the current period.

9 Profitability Ratios - Unencumbered Residential Loans

10 Profitability Ratios - Residential Loans of Securitization Trusts

11 Non-Interest Expenses The table below provides a summary of overhead and servicing costs by function for the three months ended March 31, 2010 and 2009. (1) Increase is primarily attributable to additional costs associated with operating as a standalone, public company and the addition of overhead associated with Hanover's operations.

12 Summary Portfolio Metrics - Total Portfolio

13 Prepayment Speeds and Loss Severity - By Trust

14 Static Pool Data - Cumulative Losses Initial balances for WIMC Unpledged and Trusts XI, 2004-1, 2005-1, and 2006-1 are based on initial principal balance. For Trusts II, IV, VI, VII, VIII, and X, initial balances are based on initial economic balance. Economic balance, as defined in the trust agreements, is the present value of scheduled remaining monthly payments.

15 Static Pool Data - Cumulative Repossessions Initial balances for WIMC Unpledged and Trusts XI, 2004-1, 2005-1, and 2006-1 are based on initial principal balance. For Trusts II, IV, VI, VII, VIII, and X, initial balances are based on initial economic balance. Economic balance, as defined in the trust agreements, is the present value of scheduled remaining monthly payments.

16 Static Pool Data - 90+ Delinquency Delinquency rates for WIMC Unpledged and Trusts XI, 2004-1, 2005-1, and 2006-1 are based on outstanding principal balance. Delinquency rates for Trusts II, IV, VI, VII, VIII, and X are based on gross balance, as reported historically. Gross balances include unearned interest.

17 Static Pool Data - Prepayment Rates

18 Total Portfolio Note: Portfolio characteristics data relates to the servicing portfolio only.

19 Unencumbered Assets

20 Securitized Assets

21 Trust II

22 Trust IV

23 Trust VI

24 Trust VII

25 Trust VIII

26 Trust X

27 Trust XI

28 Trust 2004-1

29 Trust 2005-1

30 Trust 2006-1

31 Securitization Triggers Refer to indenture and all other securitization documents for further details on covenants and servicer requirements.