In general, real estate activity in the nation seemed to show some encouraging signs as nationwide average of home prices have appeared to have hit a bottom and are starting to slowly bounce back, although home prices continued to decline in many parts of the United States during the first six months of 2012. Some positive news indicates that construction of new homes continued to grow in the second quarter, although at a slow rate. However, foreclosures remain one of the biggest risks to the housing market recovery. As the industry-wide compliance issues associated with foreclosures are resolved, an increase in foreclosures is expected which is expected to result in downward pressure and uncertainty in the housing market.Although there has been some stabilization and improvement in defaults, the long-term portfolio continues to suffer losses and may continue for the foreseeable future until the real estate market becomes more stable, home prices improve across the United States, and there is a significant decline in the number of foreclosure properties in the market. At June 30, 2012, the Company’s residual interest in securitizations (represented by the difference between total trust assets and total trust liabilities) decreased to $23.0 million, compared to $26.5 million at December 31, 2011. The decrease in residual fair value for the six months ended June 30, 2012 was primarily due to $5.9 million in cash received from the residual interests, partially offset by a decrease in expected forward LIBOR interest rates and a reduction in the residual interest discount rate for some of the Company’s earlier vintage securitizations, which is used in the process to estimate the fair value of the long-term mortgage portfolio. All of the above amounts which relate to March 31, 2012 or 2011, June 30, 2012 or 2011, the quarters or year-to-date periods then ended, or to April or May 2012 are unaudited.