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|   | þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|--------------------------------------------------------------------------------------|

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

| Delaware(State or other jurisdiction of incorporation ororganization)                                           | 52-1449733(IRS Employer Identification No.) |
|-----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
|                                                                                                                                          |                                                       |
| 621 East Pratt Street, Suite 600Baltimore, Maryland(Address of principal executive offices) | 21202-3140(Zip Code)                                  |

| Title of each classCommon Shares | Name of each exchange on which registeredNone |
|------------------------------------------------------|-----------------------------------------------------------------------------|

| Large accelerated filer  ̈                                             | Accelerated filer  ̈    |
|----------------------------------------------------------------------------|-----------------------------|
|                                                                       |                        |
| Non-accelerated filer  ̈ (Do not check if a smaller reporting company) | Smaller reporting company x |

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| CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS | 4                                                                                                                  |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                                                      |                                                                                                               |
| EXPLANATORY NOTE                                          | 4                                                                                                                  |
|                                                      |                                                                                                               |   |
| PART I                                                    |                                                                                                               | 5 |
|                                                      |                                                                                                               |   |
| Item 1.                                                   | BUSINESS                                                                                                           | 5 |
|                                                      |                                                                                                               |   |
| Item 1A.                                             | RISK FACTORS                                                                                                       | 11 |
|                                                      |                                                                                                               |   |
| Item 1B.                                                  | UNRESOLVED STAFF COMMENTS                                                                                          | 18 |
|                                                      |                                                                                                               |   |
| Item 2.                                                   | PROPERTIES                                                                                                         | 18 |
|                                                      |                                                                                                               |   |
| Item 3.                                                   | LEGAL PROCEEDINGS                                                                                                  | 18 |
|                                                      |                                                                                                               |   |
| Item 4.                                                   | RESERVED                                                                                                           | 19 |
|                                                      |                                                                                                               |   |
| PART II                                                   |                                                                                                               | 19 |
|                                                      |                                                                                                               |   |
| Item 5.                                                   | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 19 |
|                                                      |                                                                                                               |   |
| Item 6.                                                   | SELECTED FINANCIAL DATA                                                                                            | 20 |
|                                                      |                                                                                                               |   |
| Item 7.                                                   | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                        | 21 |
|                                                      |                                                                                                               |   |
| Item 7A.                                                  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                         | 43 |
|                                                      |                                                                                                               |   |
| Item 8.                                                   | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                        | 43 |
|                                                      |                                                                                                               |   |
| Item 9.                                                   | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                               | 43 |
|                                                      |                                                                                                               |   |
| Item 9A.                                                  | CONTROLS AND PROCEDURES                                                                                            | 43 |
|                                                      |                                                                                                               |   |
| Item 9B.                                                  | OTHER INFORMATION                                                                                                  | 45 |
|                                                      |                                                                                                               |   |
| PART III                                                  |                                                                                                               | 46 |
|                                                      |                                                                                                               |   |
| Item 10.                                                  | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                             | 46 |
|                                                      |                                                                                                               |   |
| Item 11.                                                  | EXECUTIVE COMPENSATION                                                                                             | 52 |
|                                                      |                                                                                                               |   |
| Item 12.                                                  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS                     | 62 |
|                                                      |                                                                                                               |   |
| Item 13.                                                  | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                          | 63 |
|                                                      |                                                                                                               |   |
| Item 14.                                                  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                             | 65 |
|                                                      |                                                                                                               |   |
| PART IV                                                   |                                                                                                               | 66 |
|                                                      |                                                                                                               |   |
| Item 15.                                                  | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                         | 66 |
|                                                      |                                                                                                               |   |
| SIGNATURES                                                | S-1                                                                                                                |

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| Index to Financial Statements                                                                            |   |
|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                     |   |
| Report of Independent Registered Public Accounting Firm                                                  | F-1    |
|                                                                                                     |   |
| Consolidated Balance Sheets as of December 31, 2010, 2009, 2008 and 2007                                 | F-2    |
|                                                                                                     |   |
| Consolidated Statements of Operations for the Years Ended December 31, 2010, 2009, 2008 and 2007         | F-3    |
|                                                                                                     |   |
| Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2010, 2009, 2008 and 2007 | F-5    |
|                                                                                                     |   |
| Consolidated Statements of Equity for the Years Ended December 31, 2010, 2009, 2008 and 2007             | F-6    |
|                                                                                                     |   |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009, 2008 and 2007         | F-7    |
|                                                                                                     |   |
| Notes to Consolidated Financial Statements                                                               | F-9    |

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| Item 1. | BUSINESS |
|---------|----------|

----

|   | · | In October 1999, we acquired Midland Financial Holdings, Inc., primarily a delegated underwriter and servicer for Fannie Mae, a tax credit syndicator and an asset manager, in a strategic acquisition that diversified our operations. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In July 2003, we acquired the Housing and Community Investment business (“HCI”) of Lend Lease Real Estate Investments, Inc., formerly the tax credit equity syndication division of Boston Financial Group, in a strategic acquisition that established us as a market leader in the tax credit equity syndication business. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In February 2005, we acquired MONY Realty Capital, Inc. (“MONY”) from AXA Financial, Inc. (“AXA”) formerly the investment manager for several of MONY Life Insurance Company’s commercial real estate funds, in an acquisition that expanded our fund management business and brought us into the commercial real estate market with access to institutional investors. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In July 2005, we acquired Glaser Financial Group, Inc. (“Glaser”) a commercial mortgage lender for market rate multifamily and senior housing, in an acquisition that increased our access to lending transactions, geographically expanded our operations and further diversified our activities not related to affordable housing. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In May 2006, we acquired Reventures Management Company, LLC, a company that arranged financing for, and which developed, owned and operated renewable energy (e.g., solar energy, wind power and biomass) projects.  This brought us into the renewable energy finance and development area. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In February 2007, we acquired a mortgage brokerage business known as George Elkins Mortgage Banking. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | In September 2007, we acquired Sustainable Land Fund, a company that was formed to structure and manage investments in land with environmental attributes such as wetlands. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Affordable Housing Division was established to conduct activities related to affordable housing through three reportable segments, as follows: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Tax Credit Equity (“TCE”) - A business which created investment funds and finds investors for such funds that receive tax credits for investing in affordable housing partnerships (these funds are called Low Income Housing Tax Credit Funds or “LIHTC Funds”). |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Bonds - A business which originates and invests primarily in tax-exempt bonds secured by affordable housing. |
|--------|---|--------------------------------------------------------------------------------------------------------------|

|   | o | Affordable Debt - A business which originates and invests in loans secured by affordable housing. |
|--------|---|---------------------------------------------------------------------------------------------------|

|   | · | The Real Estate Division was established to conduct real estate finance activities through two reportable segments, as follows: |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | o | Agency Lending - A business which originated both market rate and affordable housing multifamily loans with the intention of selling them to government sponsored entities (i.e., Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) collectively referred to as agencies (“Agencies”)) or through programs created by them.  This division also sold permanent loans to third party investors, which were guaranteed by the Government National Mortgage Association (“Ginnie Mae”) and insured by the United States Department of Housing and Urban Development (“HUD”). |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Merchant Banking - A business which provided loan and bond originations, loan servicing, asset management, investment advisory and other services to institutional investors that finance or invest in various commercial real estate projects, including the sale of permanent loans to third party investors. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Renewable Ventures Division was established to finance, own and operate renewable energy and energy efficiency projects. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

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|   | · | TEB’s leverage ratio was 59.9%, which was below the incurrence limit of 60%; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | TEB’s liquidation preference ratios were at amounts that would restrict it from raising additional preferred equity on parity with the existing preferred shares outstanding; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | TEB’s ability to distribute cash to MuniMae is limited to Distributable Cash Flows (TEB’s net income adjusted to exclude the impact of non-cash items) and TEB does not have the ability to make redemptions of common stock or distributions to MuniMae other than from Distributable Cash Flows (“Restricted Payments”) because the current liquidation preference ratios prohibit it. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | high levels of unemployment and other adverse economic conditions, regionally or nationally; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | decreased occupancy and rent levels due to supply and demand imbalances; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | changes in interest rates that affect the value of the debt instruments or the value of the real estate that secures the debt instruments that we own, or that affect the availability of attractive investment opportunities; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lack of mortgage financing and reduced availability of mortgage financing, each of which can affect the prices for which real estate can be sold or even the ability to sell real estate at any acceptable price. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | If any person or group, other than Shelter Development Holdings, Inc., SCA Tax-Exempt Fund, MME I Corporation, MME II Corporation or their affiliates, acquires 10% or more of our shares, that person or group cannot, with a very limited exception, (1) engage in a business combination with us (including an acquisition from us of more than 10% of our assets or more than 5% of our shares) within five years after the person or group acquires the 10% or greater interest, unless our Board of Directors approved the business combination or approved the acquisition of a 10% or greater interest in us before it took place, or the business combination is approved by two-thirds of the members of our Board and holders of two-thirds of the shares that are not owned by the person or group that owns the 10% or greater interest; or (2) engage in a business combination with us until more than five years after the person or group acquires the 10% or greater interest, unless the business combination is recommended by our Board of Directors and approved by holders of 80% of our shares or of two-thirds of the shares that are not owned by the person or group that owns the 10% or greater interest. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If any person or group makes an acquisition of our shares that causes the person or group to be able to exercise between one-fifth and one-third of all voting power of our shares, between one-third and a majority of all voting power of our shares, or a majority or more of all voting power of our shares, the acquired shares will lose their voting power, except to the extent approved at a meeting by the vote of two-thirds of the shares not owned by the person or group, and we will have the right to redeem, for their fair market value, any of the acquired shares for which the shareholders do not approve voting rights. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | One third of our directors (except one, or in some circumstances two, directors designated by Shelter Development Holdings, Inc.) are elected each year to three-year terms. That could delay the time when somebody who acquires voting control of us could elect a majority of our directors. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 4. | RESERVED |
|---------|----------|

| Item 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

|                |   | Common Shares   |      |   | Cash Dividends |   |
|---------------------|--------|----------------------|-----------|--------|---------------------|--------|
|                |   | High/Low Prices |      |   | Per Share      |   |
| Fiscal Quarter |   | 2010                 |      |   | 2009                |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| First               |   | $                    | 0.29-0.16 |   |                | $      | 0.97-0.15 |   |   | $ | 17.45-4.20 |   |   | $ | − |   |   | $ | − |   |   | $ | 0.33 | (1) |
| Second              |   |                 | 0.41-0.11 |   |                |   | 0.55-0.32 |   |   |   | 5.85-2.47 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Third               |   |                 | 0.16-0.08 |   |                |   | 0.79-0.28 |   |   |   | 3.03-0.37 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Fourth              |   |                 | 0.30-0.10 |   |                |   | 0.78-0.18 |   |   |   | 0.97-0.12 |   |   |   | − |   |   |   | − |   |   |   | − |   |

| (1) | This is the Company’s fourth quarter 2007 dividend, declared and paid in the first quarter 2008. |
|-----|--------------------------------------------------------------------------------------------------------|

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| Item 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

|                                                                                                |   | For the years ended December 31, |     |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|----------|
| (in thousands, except per share data)                                      |   | 2010                                                      |     |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS DATA:                                                    |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest, fee and other income (1)                                                                  |   | $                                                         | 104,749  |   |   | $ | 129,749 |   |   | $ | 178,558 |   |   | $ | 238,230 |   |   | $ | 200,153 |   |
| Revenue from consolidated funds and ventures (2)                                                    |   |                                                      | 2,928    |   |   |   | 5,022 |   |   |   | 5,521 |   |   |   | 19,954 |   |   |   | 2,010 |   |
| Total revenue                                                                                       |   |                                                      | 107,677  |   |   |   | 134,771 |   |   |   | 184,079 |   |   |   | 258,184 |   |   |   | 202,163 |   |
|                                                                                                |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense and other expenses (1)                                                             |   |                                                      | (135,786 | ) |   |   | (196,185 | ) |   |   | (439,894 | ) |   |   | (358,146 | ) |   |   | (205,503 | ) |
| Expenses from consolidated funds and ventures (2)                                                   |   |                                                      | (5,989   | ) |   |   | (11,101 | ) |   |   | (9,501 | ) |   |   | (7,196 | ) |   |   | (3,514 | ) |
| Total expenses                                                                                      |   |                                                      | (141,775 | ) |   |   | (207,286 | ) |   |   | (449,395 | ) |   |   | (365,342 | ) |   |   | (209,017 | ) |
|                                                                                                |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net gains (losses) on asset sales, derivatives and extinguishment of liabilities                    |   |                                                      | 11,805   |   |   |   | (11,676 | ) |   |   | (55,057 | ) |   |   | (3,003 | ) |   |   | 15,327 |   |
| Equity in (losses) earnings of unconsolidated ventures                                              |   |                                                      | (217     | ) |   |   | (1,710 | ) |   |   | (666 | ) |   |   | 4,160 |   |   |   | 5,556 |   |
| Equity in losses from Lower Tier Property Partnerships (2)(3)                                       |   |                                                      | (46,658  | ) |   |   | (59,149 | ) |   |   | (51,875 | ) |   |   | (32,362 | ) |   |   | (14,702 | ) |
| Loss from continuing operations before income taxes                                                 |   |                                                      | (69,168  | ) |   |   | (145,050 | ) |   |   | (372,914 | ) |   |   | (138,363 | ) |   |   | (673 | ) |
| Income tax benefit (expense)                                                                        |   |                                                      | 772      |   |   |   | (608 | ) |   |   | (135 | ) |   |   | (3,023 | ) |   |   | (1,448 | ) |
| Loss from discontinued operations, net of tax (4)                                                   |   |                                                      | (4,061   | ) |   |   | (234,474 | ) |   |   | (500,519 | ) |   |   | (432,185 | ) |   |   | (304,466 | ) |
| Net loss                                                                                            |   |                                                      | (72,457  | ) |   |   | (380,132 | ) |   |   | (873,568 | ) |   |   | (573,571 | ) |   |   | (306,587 | ) |
| (Income) loss allocable to noncontrolling interests:                                                |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company                        |   |                                                      | (9,865   | ) |   |   | (9,372 | ) |   |   | (9,208 | ) |   |   | (9,424 | ) |   |   | (9,208 | ) |
| Net (losses) income allocable to noncontrolling interests in consolidated funds and ventures(2)(3): |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related to continuing operations                                                                    |   |                                                      | 53,854   |   |   |   | 67,738 |   |   |   | 57,634 |   |   |   | 24,484 |   |   |   | 16,140 |   |
| Related to discontinued operations                                                                  |   |                                                      | (241     | ) |   |   | 177,926 |   |   |   | 451,287 |   |   |   | 460,319 |   |   |   | 353,302 |   |
| Net (loss) income to common shareholders                                                            |   | $                                                         | (28,709  | ) |   | $ | (143,840 | ) |   | $ | (373,855 | ) |   | $ | (98,192 | ) |   | $ | 53,647 |   |
|                                                                                                |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                                                                   |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic (Loss) Earnings:                                                                              |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) earnings from continuing operations                                                          |   | $                                                         | (0.60    | ) |   | $ | (2.18 | ) |   | $ | (8.21 | ) |   | $ | (3.22 | ) |   | $ | 1.12 |   |
| (Loss) earnings per common share                                                                    |   |                                                      | (0.71    | ) |   |   | (3.59 | ) |   |   | (9.45 | ) |   |   | (2.50 | ) |   |   | 1.39 |   |
| Diluted (Loss) Earnings:                                                                            |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) earnings from continuing operations                                                          |   |                                                      | (0.60    | ) |   |   | (2.18 | ) |   |   | (8.21 | ) |   |   | (3.22 | ) |   |   | 1.12 |   |
| (Loss) earnings per common share                                                                    |   |                                                      | (0.71    | ) |   |   | (3.59 | ) |   |   | (9.45 | ) |   |   | (2.50 | ) |   |   | 1.37 |   |
|                                                                                                |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISTRIBUTIONS:                                                                                      |   |                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends paid to common shareholders                                                          |   | $                                                         | −  |   |   | $ | − |   |   | $ | 13,024 |   |   | $ | 81,814 |   |   | $ | 77,103 |   |
| Distributions per common share                                                                      |   |                                                      | −  |   |   |   | − |   |   |   | 0.33 |   |   |   | 2.08 |   |   |   | 2.00 |   |

|                                                            |   | December 31,2010 |      |   | December 31,2009 |   |      | December 31,2008 |   |   | December 31,2007 |   |   | December 31,2006 |      |
|-----------------------------------------------------------------|--------|-----------------------|-----------|--------|-----------------------|--------|-----------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|-----------|
| CONSOLIDATED BALANCE SHEETS DATA:                               |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |                  |      |
| Bonds (1)                                                       |   | $                     | 1,231,036 |   |                  | $      | 1,348,133 |                  |   | $      | 1,426,439             |   |   | $                     | 2,113,411 |   |   | $ | 1,770,113 |   |
| Other assets (1)                                                |   |                  | 226,505   |   |                  |   | 293,072   |                  |   |   | 830,011               |   |   |                  | 1,504,015 |   |   |   | 1,828,944 |   |
| Assets of consolidated funds and ventures (4)                   |   |                  | 601,995   |   |                  |   | 628,505   |                  |   |   | 5,103,548             |   |   |                  | 5,450,065 |   |   |   | 4,884,757 |   |
| Total assets                                                    |   |                  | 2,059,536 |   |                  |   | 2,269,710 |                  |   |   | 7,359,998             |   |   |                  | 9,067,491 |   |   |   | 8,483,814 |   |
|                                                            |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |                  |      |   |   |   |   |   |
| Debt (1)                                                        |   |                  | 1,143,886 |   |                  |   | 1,287,050 |                  |   |   | 1,596,281             |   |   |                  | 2,328,641 |   |   |   | 2,219,130 |   |
| Mandatorily redeemable preferred shares                         |   |                  | 133,529   |   |                  |   | 160,866   |                  |   |   | 162,250               |   |   |                  | 162,230   |   |   |   | 162,168 |   |
| Other liabilities                                               |   |                  | 53,901    |   |                  |   | 75,220    |                  |   |   | 260,580               |   |   |                  | 534,395   |   |   |   | 581,018 |   |
| Liabilities of consolidated funds and ventures (4)              |   |                  | 27,815    |   |                  |   | 52,447    |                  |   |   | 1,091,557             |   |   |                  | 1,831,816 |   |   |   | 2,045,148 |   |
| Total liabilities                                               |   |                  | 1,359,131 |   |                  |   | 1,575,583 |                  |   |   | 3,110,668             |   |   |                  | 4,857,082 |   |   |   | 5,007,464 |   |
|                                                            |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |                  |      |   |   |   |   |   |
| Noncontrolling interests in consolidated funds and ventures (4) |   |                  | 569,556   |   |                  |   | 567,383   |                  |   |   | 3,990,061             |   |   |                  | 3,524,201 |   |   |   | 2,639,749 |   |
| Perpetual preferred shares                                      |   |                  | 168,686   |   |                  |   | 168,686   |                  |   |   | 168,686               |   |   |                  | 168,686   |   |   |   | 168,686 |   |
| Total shareholders’ (deficit) equity                      |   |                  | (37,837   | )      |                  |   | (41,942   | )                     |   |   | 90,583                |   |   |                  | 517,522   |   |   |   | 667,915 |   |

| (1) | The significant decrease in interest, fees and other income and interest and other expenses is primarily due to the sales and liquidation of businesses and assets due to our liquidity issues.  From 2006 to 2010, this reduced our bonds and loans, as well as our debt and debt expense.  See Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These amounts represent income statement data of our consolidated funds and ventures that the Company has a minor legal interest in.  See “Notes to Consolidated Financial Statements - Note 20, Consolidated Funds and Ventures” included in this Report. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts primarily represent the losses related to the LIHTC Funds that are consolidated under ASC 810.  Virtually all of the losses are allocated to the limited partners in the LIHTC Funds.  This allocation is included in the “Net losses allocable to noncontrolling interest in consolidated funds and ventures.”  See “Notes to Consolidated Financial Statements - Note 20, Consolidated Funds and Ventures” included in this Report. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | The assets, liabilities and noncontrolling interests in consolidated funds and ventures decreased significantly in 2009, primarily due to the sale of our TCE business in 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

|   | · | The Affordable Housing Division was established to conduct activities related to affordable housing through three reportable segments, as follows: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | TCE - A business which created investment funds and finds investors for such funds that receive tax credits for investing in affordable housing partnerships (LIHTC Funds). |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Bonds - A business which originates and invests primarily in tax-exempt bonds secured by affordable housing. |
|--------|---|--------------------------------------------------------------------------------------------------------------|

|   | o | Affordable Debt - A business which originates and invests in loans secured by affordable housing. |
|--------|---|---------------------------------------------------------------------------------------------------|

|   | · | The Real Estate Division was established to conduct real estate finance activities through two reportable segments, as follows: |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | o | Agency Lending - A business which originated both market rate and affordable housing multifamily loans with the intention of selling them to government sponsored entities (i.e., Fannie Mae and Freddie Mac or through programs created by them.  This division also sold permanent loans to third party investors and the loans are guaranteed by Ginnie Mae and insured by HUD). |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Merchant Banking - A business which provided loan and bond originations, loan servicing, asset management, investment advisory and other services to institutional investors that finance or invest in various commercial real estate projects, including the sale of permanent loans to third party investors. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Renewable Ventures Division was established to finance, own and operate renewable energy and energy efficiency projects. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the determination as to whether an entity is a variable interest entity (“VIE”). |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | if the entity is considered a VIE, then the determination of whether we are the primary beneficiary of the VIE is needed and requires us to make judgments regarding: (1) the measurement of expected losses and returns related to the VIE and which party absorbs the most variability from those expectations, as well as (2) the existence of related party relationships between us and other investors in the entity, the relationship of the VIE to the various investors in the entity, and the design of the VIE. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if the entity is required to be consolidated, then upon initial consolidation, we record the assets, liabilities and noncontrolling interests at fair value.  Substantially all of our consolidated entities are investment entities that own real estate or real estate related investments and as such there are judgments related to the forecasted cash flows to be generated from the investments such as rental revenue and operating expenses, vacancy, replacement reserves and tax benefits (if any).  In addition, the determination of investor discount rates and capitalization rates is needed. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the borrower’s overall financial condition and historical payment record; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | the prospects for support from any financially responsible guarantors; and |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the net realizable value of any collateral, if appropriate. |
|--------|--------|-------------------------------------------------------------|

|   | · | tax benefits associated with future federal and state tax credits; |
|--------|--------|--------------------------------------------------------------------|

|   | · | tax benefits associated with future net operating losses (primarily depreciation taken on the real estate asset); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | cash flows used by and generated from the multifamily housing properties; as well as |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | any net cash generated from a sale or disposal of the property at the end of the investment period. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

----

----

| Table 1                                                                                  |   |   |    |   |   |   |     |   |   |   |     |   |
|-----------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
| (in thousands)                                                                           |   | 2010   |    |   | 2009   |   |     | 2008   |   |   | 2007     |   |
| Revenue:                                                                                      |   |   |    |   |   |   |     |   |   |   |     |   |
| Total interest income                                                                         |   | $      | 91,697  |   |   | $      | 110,968  |   |   | $      | 149,012  |   |   | $ | 212,038 |   |
| Total fee and other income                                                                    |   |   | 13,052  |   |   |   | 18,781   |   |   |   | 29,546   |   |   |   | 26,192 |   |
| Total revenue from consolidated funds and ventures                                            |   |   | 2,928   |   |   |   | 5,022    |   |   |   | 5,521    |   |   |   | 19,954 |   |
| Total revenue                                                                                 |   |   | 107,677 |   |   |   | 134,771  |   |   |   | 184,079  |   |   |   | 258,184 |   |
| Expenses:                                                                                     |   |   |    |   |   |   |     |   |   |   |     |   |   |   |   |   |
| Interest expense                                                                              |   |   | 66,573  |   |   |   | 79,566   |   |   |   | 115,590  |   |   |   | 131,713 |   |
| Operating expenses                                                                            |   |   | 44,212  |   |   |   | 73,802   |   |   |   | 164,504  |   |   |   | 143,817 |   |
| Impairment and provision for credit losses                                                    |   |   | 25,001  |   |   |   | 42,817   |   |   |   | 159,800  |   |   |   | 82,616 |   |
| Total expenses from consolidated funds and ventures                                           |   |   | 5,989   |   |   |   | 11,101   |   |   |   | 9,501    |   |   |   | 7,196 |   |
| Total expenses                                                                                |   |   | 141,775 |   |   |   | 207,286  |   |   |   | 449,395  |   |   |   | 365,342 |   |
| Net gains (losses) on asset sales, derivatives and extinguishment of liabilities              |   |   | 11,805  |   |   |   | (11,676  | )      |   |   | (55,057  | )      |   |   | (3,003 | ) |
| Equity in (losses) earnings from unconsolidated ventures                                      |   |   | (217    | )      |   |   | (1,710   | )      |   |   | (666     | )      |   |   | 4,160 |   |
| Equity in losses from Lower Tier Property Partnerships                                        |   |   | (46,658 | )      |   |   | (59,149  | )      |   |   | (51,875  | )      |   |   | (32,362 | ) |
| Loss from continuing operations before income taxes                                           |   |   | (69,168 | )      |   |   | (145,050 | )      |   |   | (372,914 | )      |   |   | (138,363 | ) |
| Income tax benefit (expense)                                                                  |   |   | 772     |   |   |   | (608     | )      |   |   | (135     | )      |   |   | (3,023 | ) |
| Loss from discontinued operations, net of tax                                                 |   |   | (4,061  | )      |   |   | (234,474 | )      |   |   | (500,519 | )      |   |   | (432,185 | ) |
| Net loss                                                                                      |   |   | (72,457 | )      |   |   | (380,132 | )      |   |   | (873,568 | )      |   |   | (573,571 | ) |
| (Income) loss allocable to noncontrolling interests:                                          |   |   |    |   |   |   |     |   |   |   |     |   |   |   |   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company                  |   |   | (9,865  | )      |   |   | (9,372   | )      |   |   | (9,208   | )      |   |   | (9,424 | ) |
| Net losses (income) allocable to noncontrolling interests in consolidated funds and ventures: |   |   |    |   |   |   |     |   |   |   |     |   |   |   |   |   |
| Related to continuing operations                                                              |   |   | 53,854  |   |   |   | 67,738   |   |   |   | 57,634   |   |   |   | 24,484 |   |
| Related to discontinued operations                                                            |   |   | (241    | )      |   |   | 177,926  |   |   |   | 451,287  |   |   |   | 460,319 |   |
| Net loss to common shareholders                                                               |   | $      | (28,709 | )      |   | $      | (143,840 | )      |   | $      | (373,855 | )      |   | $ | (98,192 | ) |

| Table 2                       |   |   |   |   |   |   |    |   |   |   |    |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| (in thousands)                |   | 2010   |   |   | 2009   |   |    | 2008   |   |   | 2007    |   |
| Interest on bonds                  |   | $      | 84,864 |   |   | $      | 95,737  |   |   | $      | 115,084 |   |   | $ | 141,580 |   |
| Interest on loans                  |   |   | 6,663  |   |   |   | 14,874  |   |   |   | 32,554  |   |   |   | 68,819 |   |
| Interest on short-term investments |   |   | 170    |   |   |   | 357     |   |   |   | 1,374   |   |   |   | 1,639 |   |
| Total interest income              |   | $      | 91,697 |   |   | $      | 110,968 |   |   | $      | 149,012 |   |   | $ | 212,038 |   |

----

| Table 3                       |   |   |   |   |   |   |   |   |   |   |    |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| (in thousands)                |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007    |   |
| Syndication fees                   |   | $      | 2,028  |   |   | $      | 2,273  |   |   | $      | 8,483   |   |   | $ | 10,372 |   |
| Asset management and advisory fees |   |   | 1,203  |   |   |   | 7,240  |   |   |   | 10,035  |   |   |   | 5,855 |   |
| Income on preferred stock          |   |   | 6,524  |   |   |   | 4,247  |   |   |   | − |   |   |   | − |   |
| Other  income                 |   |   | 3,297  |   |   |   | 5,021  |   |   |   | 11,028  |   |   |   | 9,965 |   |
| Total fee and other income         |   | $      | 13,052 |   |   | $      | 18,781 |   |   | $      | 29,546  |   |   | $ | 26,192 |   |

----

----

| Table 4        |   |   |   |   |   |   |   |   |   |   |    |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| (in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007    |   |
| Interest expense    |   | $      | 66,573 |   |   | $      | 79,566 |   |   | $      | 115,590 |   |   | $ | 131,713 |   |

| Table 5               |   |   |   |   |   |   |   |   |   |   |    |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| (in thousands)        |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007    |   |
| Salaries and benefits      |   | $      | 12,185 |   |   | $      | 21,641 |   |   | $      | 34,749  |   |   | $ | 34,380 |   |
| General and administrative |   |   | 7,460  |   |   |   | 13,621 |   |   |   | 18,802  |   |   |   | 15,818 |   |
| Professional fees          |   |   | 14,641 |   |   |   | 18,310 |   |   |   | 90,980  |   |   |   | 69,880 |   |
| Other expenses             |   |   | 9,926  |   |   |   | 20,230 |   |   |   | 19,973  |   |   |   | 23,739 |   |
| Total operating expenses   |   | $      | 44,212 |   |   | $      | 73,802 |   |   | $      | 164,504 |   |   | $ | 143,817 |   |

----

----

| Table 6                                                      |   |   |    |   |   |   |    |   |   |   |    |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| (in thousands)                                               |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |
| Impairment on bonds                                               |   | $      | 20,561  |   |   | $      | 41,474  |   |   | $      | 126,936 |   |   | $ | 27,071 |   |
| Provision for credit losses                                       |   |   | 4,440   |   |   |   | 1,343   |   |   |   | 32,864  |   |   |   | 49,759 |   |
| Impairment of goodwill and other intangibles                      |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 5,786 |   |
| Total impairments and valuation allowances related to investments |   | $      | 25,001  |   |   | $      | 42,817  |   |   | $      | 159,800 |   |   | $ | 82,616 |   |

----

| Table 7                                                                                |   |   |   |   |   |   |    |   |   |   |    |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| (in thousands)                                                                         |   | 2010   |   |   | 2009   |   |    | 2008   |   |   | 2007    |   |
| Net gains (losses) on sale of bonds                                                         |   | $      | 3,212  |   |   | $      | (3,249  | )      |   | $      | (14,509 | )      |   | $ | 6,507 |   |
| Net gains (losses) on loans                                                                 |   |   | 5,689  |   |   |   | (14,527 | )      |   |   | (16,480 | )      |   |   | 3,222 |   |
| Net (losses) gains on derivatives                                                           |   |   | (7,924 | )      |   |   | 2,239   |   |   |   | (28,608 | )      |   |   | (16,723 | ) |
| Net gains (losses) on sale of unconsolidated ventures                                       |   |   | 3,500  |   |   |   | (960    | )      |   |   | 5,166   |   |   |   | − |   |
| Net gains (losses) on early extinguishment of liabilities                                   |   |   | 7,328  |   |   |   | 4,821   |   |   |   | (626    | )      |   |   | 3,991 |   |
| Total net gains (losses) on bond sales, loans derivatives and extinguishment of liabilities |   | $      | 11,805 |   |   | $      | (11,676 | )      |   | $      | (55,057 | )      |   | $ | (3,003 | ) |

----

----

| Table 8                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (in thousands)                                      |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Equity in (losses) earnings from unconsolidated ventures |   | $      | (217   | )      |   | $      | (1,710 | )      |   | $      | (666   | )      |   | $ | 4,160 |   |

----

| Table 9                 |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (in thousands)          |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Income tax benefit (expense) |   | $      | 772    |   |   | $      | (608   | )      |   | $      | (135   | )      |   | $ | (3,023 | ) |

| Table 10                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (in thousands)                                                          |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company |   | $      | (9,865 | )      |   | $      | (9,372 | )      |   | $      | (9,208 | )      |   | $ | (9,424 | ) |

----

| Table 11                                                                                                      |   |                  |    |   |                  |   |    |                  |   |   |                  |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
|   (in thousands)                                                                                         |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
| Revenue:                                                                                                           |   |                  |    |   |                  |   |    |                  |   |   |                  |   |
| Solar fund revenue                                                                                                 |   | $                     | 1,048   |   |                  | $      | 884     |                  |   | $      | 912                   |   |   | $ | 558 |   |
| Rental and other income from real estate                                                                           |   |                  | 1,371   |   |                  |   | 2,867   |                  |   |   | 2,833                 |   |   |   | 1,615 |   |
| Interest and other income                                                                                          |   |                  | 509     |   |                  |   | 1,271   |                  |   |   | 1,776                 |   |   |   | 17,781 |   |
| Total revenue                                                                                                      |   |                  | 2,928   |   |                  |   | 5,022   |                  |   |   | 5,521                 |   |   |   | 19,954 |   |
|                                                                                                               |   |                  |    |   |                  |   |    |                  |   |   |                  |   |   |   |   |   |
| Expenses:                                                                                                          |   |                  |    |   |                  |   |    |                  |   |   |                  |   |   |   |   |   |
| Depreciation and amortization                                                                                      |   |                  | 4,306   |   |                  |   | 4,698   |                  |   |   | 4,775                 |   |   |   | 4,139 |   |
| Interest expense                                                                                                   |   |                  | 674     |   |                  |   | 355     |                  |   |   | 211                   |   |   |   | 195 |   |
| Impairments and valuation adjustments                                                                              |   |                  | (1,296  | )      |                  |   | 1,665   |                  |   |   | 600                   |   |   |   | 126 |   |
| Other operating expenses                                                                                           |   |                  | 2,305   |   |                  |   | 4,383   |                  |   |   | 3,915                 |   |   |   | 2,736 |   |
| Total expenses                                                                                                     |   |                  | 5,989   |   |                  |   | 11,101  |                  |   |   | 9,501                 |   |   |   | 7,196 |   |
|                                                                                                               |   |                  |    |   |                  |   |    |                  |   |   |                  |   |   |   |   |   |
| Equity in losses from Lower Tier Property Partnerships                                                             |   |                  | (46,658 | )      |                  |   | (59,149 | )                     |   |   | (51,875               | )      |   |   | (32,362 | ) |
| Net losses allocable to noncontrolling interests from consolidated funds and ventures (from continuing operations) |   |                  | 53,854  |   |                  |   | 67,738  |                  |   |   | 57,634                |   |   |   | 24,484 |   |
| Net income allocable to the common shareholders                                                                    |   | $                     | 4,135   |   |                  | $      | 2,510   |                  |   | $      | 1,779                 |   |   | $ | 4,880 |   |

----

| Table 12                                                                      |   |   |   |   |   |   |     |   |   |   |     |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
| (in thousands)                                                                |   | 2010   |   |   | 2009   |   |     | 2008   |   |   | 2007     |   |
| Income (loss) from discontinued operations                                         |   | $      | 1,464  |   |   | $      | (179,824 | )      |   | $      | (503,365 | )      |   | $ | (442,154 | ) |
| Net (loss) gain from disposal of business                                          |   |   | (5,525 | )      |   |   | (54,650  | )      |   |   | 2,846    |   |   |   | 9,969 |   |
| Total net loss from discontinued operations                                        |   |   | (4,061 | )      |   |   | (234,474 | )      |   |   | (500,519 | )      |   |   | (432,185 | ) |
| Discontinued net (income) loss allocable to noncontrolling interests               |   |   | (241   | )      |   |   | 177,926  |   |   |   | 451,287  |   |   |   | 460,319 |   |
| Discontinued net (loss) income to common shareholders from discontinued operations |   | $      | (4,302 | )      |   | $      | (56,548  | )      |   | $      | (49,232  | )      |   | $ | 28,134 |   |

----

| (in thousands)                                           |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007     |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|
| Unrestricted cash and cash equivalents at beginning of period |   | $      | 18,084  |   |   | $      | 41,089  |   |   | $      | 48,807   |   |   | $ | 49,085 |   |
| Net cash provided by (used in):                               |   |   |    |   |   |   |    |   |   |   |     |   |   |   |   |   |
| Operating activities                                          |   |   | 20,489  |   |   |   | (22,464 | )      |   |   | (22,619  | )      |   |   | 149,941 |   |
| Investing activities                                          |   |   | 59,648  |   |   |   | 46,607  |   |   |   | (357,396 | )      |   |   | (1,064,999 | ) |
| Financing activities                                          |   |   | (65,677 | )      |   |   | (47,148 | )      |   |   | 372,297  |   |   |   | 914,780 |   |
| Net increase (decrease) in cash and cash equivalents          |   |   | 14,460  |   |   |   | (23,005 | )      |   |   | (7,718   | )      |   |   | (278 | ) |
| Unrestricted cash and cash equivalents at end of period (1)   |   | $      | 32,544  |   |   | $      | 18,084  |   |   | $      | 41,089   |   |   | $ | 48,807 |   |

|   | (1) | At December 31, 2010, 2009, 2008 and 2007, our unrestricted cash included TEB’s unrestricted cash of $25.2 million, $12.4 million, $15.2 million and $17.6 million, respectively; however, distributions of this cash to the Company are subject to certain restrictions (see “Notes to Consolidated Financial Statements – Note 1, Description of the Business and Basis of Presentation – Key Risks Related to the Company’s Bond Investing Activities”). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (dollars in thousands)                            |   | December 31,2010 |      |   | Weighted-AverageInterest Rate atPeriod-End |   |
|-------------------------------------------------------------|--------|-----------------------|-----------|--------|------------------------------------------------------|--------|
|                                                        |   |                  |      |   |                                                 |   |
| Debt related to bond investing activities (1):              |   |                  |      |   |                                                 |   |
| Senior interests and debt owed to securitization trusts (2) |   | $                     | 748,100   |   |                                                 |   | 0.7 | % |
| Mandatorily redeemable preferred shares (3)                 |   |                  | 133,529   |   |                                                 |   | 8.5 |   |
| Notes payable and other debt (4)                            |   |                  | 74,098    |   |                                                 |   | 6.6 |   |
| Total bond related debt                                     |   |                  | 955,727   |   |                                                 |   |   |   |
|                                                        |   |                  |      |   |                                                 |   |   |   |
| Non-bond related debt:                                      |   |                  |      |   |                                                 |   |   |   |
| Notes payable and other                                     |   |                  | 133,787   |   |                                                 |   | 8.4 |   |
| Subordinated debentures (5)                                 |   |                  | 183,711   |   |                                                 |   | 8.8 |   |
| Line of credit facilities                                   |   |                  | 4,190     |   |                                                 |   | 6.0 |   |
| Total non-bond related debt                                 |   |                  | 321,688   |   |                                                 |   |   |   |
|                                                        |   |                  |      |   |                                                 |   |   |   |
| Total debt                                                  |   | $                     | 1,277,415 |   |                                                 |   |   |   |

|   | (1) | Debt related to bond investing activities is debt that is either collateralized or securitized with bonds or other debt obligations of TEB and TEI. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | We also incur on-going fees related to credit enhancement, liquidity, custodian, trustee and remarketing as well as upfront debt issuance costs, which when added to the weighted average interest rate brings the overall weighted average interest expense (due within one year) to 1.9%, at December 31, 2010.  These additional fees bring the weighted average interest rate (due after one year) to 2.0% at December 31, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Included in the mandatorily redeemable preferred shares balance are unamortized discounts of $4.4 million at December 31, 2010, respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Included in the notes payable and other debt are unamortized discounts of $1.8 million at December 31, 2010. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (5) | Included in the subordinated debentures is an unamortized discount of $13.0 million at December 31, 2010. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

----

----

|                                         |   | 2010            |    |
|----------------------------------------------|--------|-----------------|---------|
| (in thousands)                          |   | MaximumExposure |    |   | CarryingAmount |   |
| Mortgage banking loss-sharing agreements (1) |   | $               | 430     |   |   | $ | 379 |   |
| Indemnification contracts (2)                |   |            | 110,665 |   |   |   | 2,198 |   |
| Other financial/payment guarantees (3)       |   |            | 8,284   |   |   |   | 4,658 |   |
|                                         |   | $               | 119,379 |   |   | $ | 7,235 |   |

| (1) | As part of the sale of our Agency Lending business, we effectively retained the DUS obligation related to specific loans. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (2) | We have entered into indemnification contracts with investors in our LIHTC Funds to compensate them for losses resulting from a recapture of tax credits due to foreclosure or difficulties in reaching occupancy milestones with respect to certain LIHTC property investments. We had no cash payments under these indemnification agreements for the year ended December 31, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | We have entered into arrangements that require us to make payments in the event that a third party fails to perform on its financial obligations.  Generally, we provide these guarantees in conjunction with the sale or placement of an asset with a third party.  The terms of such guarantees vary based on the performance of the asset. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | December 31, 2010 |
|----------------------------------|--------|-----------------------------|
| (dollars in thousands) |   | CarryingAmount              |   |   | Face Amount |   |   | Weighted-average Interest Rates |   | Maturity Dates |
| Solar Funds:                     |   |                        |   |   |   |   |   |   |   |   |
| Notes payable                    |   | $                           | 3,709 |   |   | $ | 3,709 |   |   |   | 8.3 | % (1)  | Various dates through December 2022 |
| Total debt                       |   | $                           | 3,709 |   |   | $ | 3,709 |   |   |   |   |   |   |

|   | (1) | This debt is also entitled to a portion of our development and other fees as contingent interest.  Since inception, $0.1 million of contingent interest has been paid. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                        |   |   |      |   | Payment due by period |   |
|-------------------------------------------------------------|--------|--------|-----------|--------|--------------------------------------|--------|
| (in thousands)                                         |   | Total  |      |   | Less than 1 year      |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
| Line of credit facilities                                   |   | $      | 4,190     |   |                                 | $      | 4,190 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |
| Senior interests and debt owed to securitization trusts (1) |   |   | 748,100   |   |                                 |   | 15,985 |   |   |   | 55,140 |   |   |   | 42,255 |   |   |   | 634,720 |   |
| Notes payable and other debt                                |   |   | 207,885   |   |                                 |   | 112,174 |   |   |   | 47,909 |   |   |   | 609 |   |   |   | 47,193 |   |
| Subordinated debentures                                     |   |   | 183,711   |   |                                 |   | − |   |   |   | − |   |   |   | 15,427 |   |   |   | 168,284 |   |
| Mandatorily redeemable preferred shares                     |   |   | 133,529   |   |                                 |   | 5,558 |   |   |   | 12,436 |   |   |   | 14,428 |   |   |   | 101,107 |   |
| Operating lease obligations (2)                             |   |   | 15,726    |   |                                 |   | 3,887 |   |   |   | 7,642 |   |   |   | 3,832 |   |   |   | 365 |   |
| Unfunded loan commitments (3)                               |   |   | 315       |   |                                 |   | 315 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Unfunded equity commitments (4)                             |   |   | 20,970    |   |                                 |   | 20,970 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Debt related to consolidated funds and ventures (5)         |   |   | 3,709     |   |                                 |   | 181 |   |   |   | 446 |   |   |   | 526 |   |   |   | 2,556 |   |
| Total                                                       |   | $      | 1,318,135 |   |                                 | $      | 163,260 |   |   | $ | 123,573 |   |   | $ | 77,077 |   |   | $ | 954,225 |   |

| (1) | Although these future debt payments are pursuant to the underlying debt agreements, the securitization trusts have credit enhancement and liquidity facility agreements that mature prior to these dates. At December 31, 2010, we had maturing credit enhancement and liquidity facilities totaling $71.3 million in 2011 and $598.3 million in 2013.  Historically, these have been renewed; however, there can be no assurance that this will continue. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We have entered into non-cancelable operating leases for office space and equipment. These leases expire on various dates through 2016. See “Notes to Consolidated Financial Statements - Note 14, Commitments and Contingencies” included in this Report. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Unfunded loan commitments are commitments to extend credit to a customer as long as there is no violation of any condition established in the contract.  See “Notes to Consolidated Financial Statements - Note 3, Loans Held for Investment and Loans Held for Sale” included in this Report. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | As the limited partner in real estate operating partnerships, we have committed to extend equity to real estate operating partnerships in accordance with the partnership documents. This total amount is equity commitments of our consolidated LIHTC Funds to extend equity to Lower Tier Property Partnerships, which is funded primarily from the limited partners’ capital in the LIHTC Funds and not from us.  The timing of advancing money on these commitments is not dependent on the passage of time, but is dependent on various milestones and events occurring as detailed in the partnership agreements.  Estimating the timing for each partnership is not practical and, as such all amounts are shown in the less than one year column.  See “Notes to Consolidated Financial Statements - Note 20, Consolidated Funds and Ventures” included in this Report. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (5) | Debt related to consolidated ventures consists of notes payable arrangements of our solar funds that we consolidated.  See “Notes to Consolidated Financial Statements - Note 20, Consolidated Funds and Ventures” included in this Report. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|---------|---------------------------------------------|

| Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

----

| 1. | Overall Control Environment.  We did not maintain an effective overall control environment, which is the foundation needed for effective internal control over financial reporting, as evidenced by the following weaknesses: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have not been able to effectively maintain our accounting and financial reporting for the years 2010, 2009, 2008 and 2007 on a timely basis.  This was primarily because of our efforts being focused on the accounting and financial statement preparation for the financial statements for 2006 and prior years that were presented in the Company’s 2006 Annual Report on Form 10-K (which was filed with the SEC on April 29, 2009).  Specifically, we did not have processes in place to provide timely supervisory review of our financial statements and significant accounting transactions.  We believe that with the filing of this Report we will be able to maintain our reporting on a timely basis with the SEC. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We did not maintain an accounting policy function that was timely in the review and updating of our accounting policies, procedures and evaluation of significant transactions for the 2007 to 2010 periods. Beginning in the first quarter of 2011, we believe we have an accounting policy function that will provide for timely reviews of accounting policy changes, significant transaction reviews and other accounting policy support that will be sufficient for timely filing of financial reports with the SEC. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | There are significant estimates and judgments related to the application of our accounting policies, especially in the valuation area, and we were not timely in the preparation or review of our accounting policies and accounting implementation related to these judgmental areas.  We are actively working to remediate these weaknesses. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have not performed timely business unit and senior management reviews of our GAAP based financial results.  Although the financial statements included in this Report have been reviewed by senior management and the Board, these reviews were not performed on a timely basis.  This review process is expected to be conducted on a timely basis beginning with the March 31, 2011 quarterly financial statements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Although we have documented our key accounting policies and accounting for significant transactions, this process was not completed on a timely basis.  We also have not yet documented our key accounting and reporting processes and related internal controls associated with those processes (see “Remediation of Material Weaknesses” below). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Valuations. Many of the Company’s accounting policies are dependent on valuation results for assets and liabilities.  Our bonds and derivatives are carried at fair value, our held for sale loans are carried at the lower of cost or fair value, and our held for investment loans are carried at amortized cost, less any specific impairment reserves (which are generally based on the fair value of the collateral).  Since these assets and liabilities that are subject to some form of recurring or non-recurring fair value accounting are not traded on established exchanges our fair values are based on indirect observable data.  Our processes and internal control over valuations have material weaknesses in the following areas; inadequate supervisory review of values, non-timely preparation of valuations and inadequate documentation associated with our valuations.  The Company is actively remediating these weaknesses (see below). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Consolidation Accounting.  We did not maintain effective controls over the accounting for our variable interests in variable interest entities.  More specifically, the consolidation accounting assessment related to these areas was not performed timely, and in some cases our initial conclusions were not correct.  In addition, our initial allocation of income related to our interests was not correct.  The Company is actively remediating these weaknesses (see below). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Equity Method Accounting.  We did not maintain effective controls to ensure accurate application of the equity method of accounting for investments in certain partnerships.  More specifically, we did not conduct timely reviews of the underlying financial results of our LIHTC Funds’ investments in Lower Tier Property Partnerships.  The Company is actively remediating these weaknesses (see below). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | We now focus our attention on ensuring that our financial reporting is in accordance with GAAP, and, in contrast to our previous use of certain non-GAAP metrics, we no longer use any alternative measure of our financial performance. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have developed, adopted and documented formal accounting and reporting policies with respect to all of our significant transactions that are relevant to our business and necessary to properly account for our results for the periods presented in this Report.  This includes policies regarding consolidation accounting, bond accounting, equity method accounting, accounting for derivatives, accounting for mortgage servicing rights, accounting for loans, purchase accounting, and accounting for property and equipment, payroll and accounts payable. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We are strengtheninging our policies and procedures related to our accounting for assets and liabilities that are dependent on fair value measurements.  A Valuation Committee has been formed that will be responsible for the review and approval of all significant fair value measurements.  We also will incorporate a multilevel supervisory review of valuations, including a review of the integrity of the underlying data and clerical accuracy of the fair value models.  Some of these procedures have been implemented as of December 31, 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have been able to reorganize our accounting group such that a significant portion of our accounting is performed by employees and not consultants.  This provides a level of consistency, historical company knowledge and understanding of our transactions and how to account for them.  Although we are continuing to use consultants in some areas, these areas are limited and will be transitioned to full time employees in the near term. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We are implementing a more timely review by the accounting group of business transactions.  The accounting group will be involved as the business transactions are contemplated and will provide timely accounting support and accounting policy implementation as the transaction unfolds and therefore this will allow us to account for the consummation of transactions on a timely basis. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We are revising our risk assessment processes to align them better with the changing nature and complexity of our various lines of business and with the way we will be assessing risk under Auditing Standard No. 5. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                |   | Age |   | Position(s)                                          |
|---------------------|--------|-----|--------|------------------------------------------------------|
| Michael L. Falcone  |   | 49  |   | Chief Executive Officer, President and Director      |
| David Kay           |   | 54  |   | Chief Financial Officer and Executive Vice President |
| Earl W. Cole, III   |   | 57  |   | Executive Vice President                             |
| Gary A. Mentesana   |   | 46  |   | Executive Vice President and Treasurer               |
| Charles C. Baum     |   | 69  |   | Director                                             |
| Mark K. Joseph      |   | 72  |   | Director and Chairman of the Board                   |
| Douglas A. McGregor |   | 69  |   | Director                                             |
| Arthur S. Mehlman   |   | 69  |   | Director                                             |
| Fred N. Pratt, Jr.  |   | 66  |   | Director                                             |

----

----

----

|   | · | the integrity of our financial statements, the financial reporting process, and internal controls over financial reporting; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | the performance of our internal audit function; |
|--------|--------|-------------------------------------------------|

|   | · | the appointment, engagement and performance of our independent registered public accounting firm and the evaluation of the independent registered public accounting firm’s qualifications and independence; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | compliance with our Code of Ethics and Principles of Business Integrity, and legal and regulatory requirements, including our disclosure controls and procedures. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | review our executive compensation policy and programs to ensure that they (1) effectively motivate the CEO and other executive officers and key employees to achieve our financial goals and strategic objectives; (2) properly align the interests of these employees with the long-term interests of our shareholders; and (3) are sufficiently competitive to attract and retain the executive resources necessary for the successful management of our businesses; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | review trends in management compensation, oversee the development of new compensation plans (including performance-based, equity-based and other incentive programs as well as salary, bonus and deferred compensation arrangements) and, when appropriate, make recommendations to the Board regarding new plans and revisions to existing plans; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | annually review and approve corporate goals and objectives relevant to the compensation of our Chief Executive Officer and other executive officers and key employees, evaluate the performance of such individuals and approve the compensation for such individuals; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | annually evaluate the compensation of the members of the Board; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | review our management succession plan for the Chief Executive Officer and other executive officers and key employees. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

----

|   | · | developing and implementing corporate governance guidelines; |
|--------|--------|--------------------------------------------------------------|

|   | · | identifying and recommending qualified individuals to serve as members of the Board; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | evaluating and recommending the size and composition of the Board and its Committees (including making determinations concerning composition of the Board and its Committees under the applicable requirements of the SEC and the NYSE); and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | monitoring a process to assess the effectiveness of the Board and its Committees. |
|--------|--------|-----------------------------------------------------------------------------------|

----

----

| Name and Principal Position  |   | Year   |   | Salary |    |   | Bonus (1) |   |      | StockAwards (2) |   |   | Non-equityIncentive PlanCompensation (2) |   |   | Total  |    |
|------------------------------|--------|--------|--------|--------|---------|--------|-----------|--------|-----------|-----------------|--------|--------|-----------------------------------------------|--------|--------|--------|---------|
| Michael L. Falcone           |   | 2007   |   | $      | 468,344 |   |      | $      | 368,750   |            |   | $      | 18,227                                        |   |   | $      | 396,928 | (3) |   | $ | 1,252,249 |   |
| CEO and President            |   | 2008   |   |   | 494,378 |   |      |   | −   |            |   |   | 27,896                                        |   |   |   | 29,161  | (4) |   |   | 551,434 |   |
|                         |   | 2009   |   |   | 519,904 |   |      |   | −   |            |   |   | 452                                           |   |   |   | 8,339   |   |   |   | 528,695 |   |
|                         |   | 2010   |   |   | 501,100 |   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | 501,100 |   |
|                         |   |   |   |   |    |   |      |   |      |            |   |   |                                          |   |   |   |    |   |   |   |   |   |
| Gary A. Mentesana            |   | 2007   |   |   | 340,063 |   |      |   | 200,000   |            |   |   | 8,822                                         |   |   |   | 370,378 | (5) |   |   | 919,263 |   |
| Executive Vice President     |   | 2008   |   |   | 354,789 |   |      |   | 37,500    |            |   |   | 9,125                                         |   |   |   | 18,639  | (6) |   |   | 420,053 |   |
|                         |   | 2009   |   |   | 369,249 |   |      |   | −   |            |   |   | 1,129                                         | (7)    |   |   | 30,612  |   |   |   | 400,990 |   |
|                         |   | 2010   |   |   | 365,946 |   |      |   | −   |            |   |   | 110                                           |   |   |   | 7,425   |   |   |   | 373,481 |   |
|                         |   |   |   |   |    |   |      |   |      |            |   |   |                                          |   |   |   |    |   |   |   |   |   |
| David Kay CFO and            |   | 2007   |   |   | 29,477  |   |      |   | −   |            |   |   | 3,211                                         |   |   |   | 100,000 |   |   |   | 132,688 |   |
| Executive Vice President (8) |   | 2008   |   |   | 448,400 |   |      |   | −   |            |   |   | -                                             |   |   |   | 2,018   | (9) |   |   | 450,418 |   |
|                         |   | 2009   |   |   | 463,024 |   |      |   | 1,364,585 |            |   |   | 1,032                                         |   |   |   | 100,000 |   |   |   | 1,928,642 |   |
|                         |   | 2010   |   |   | 466,230 |   |      |   | 150,351   |            |   |   | 780                                           |   |   |   | 100,000 |   |   |   | 717,361 |   |
|                         |   |   |   |   |    |   |      |   |      |            |   |   |                                          |   |   |   |    |   |   |   |   |   |
| Charles M. Pinckney          |   | 2007   |   |   | 388,294 |   |      |   | 650,000   |            |   |   | 1,557                                         |   |   |   | 29,167  |   |   |   | 1,069,018 |   |
| COO (resigned 12/31/08)      |   | 2008   |   |   | 471,972 |   |      |   | 190,000   |            |   |   | −                                       |   |   |   | 17,247  | (10) |   |   | 679,219 |   |
|                         |   | 2009   |   |   | 98,766  | (11)   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | 98,766 |   |
|                         |   | 2010   |   |   | − |   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | − |   |
|                         |   |   |   |   |    |   |      |   |      |            |   |   |                                          |   |   |   |    |   |   |   |   |   |
| Jenny Netzer                 |   | 2007   |   |   | 323,986 |   |      |   | 325,000   |            |   |   | 8,151                                         |   |   |   | 16,667  |   |   |   | 673,804 |   |
| Executive Vice President     |   | 2008   |   |   | 347,251 |   |      |   | −   |            |   |   | −                                       |   |   |   | 996     | (12) |   |   | 348,247 |   |
| (resigned 02/06/09)          |   | 2009   |   |   | 426,004 | (11)   |      |   | −   |            |   |   | 2,723                                         | (7)    |   |   | − |   |   |   | 428,727 |   |
|                         |   | 2010   |   |   | 40,385  | (11)   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | 40,385 |   |
|                         |   |   |   |   |    |   |      |   |      |            |   |   |                                          |   |   |   |    |   |   |   |   |   |
| Melanie M. Lundquist         |   | 2007   |   |   | 478,603 | (11)   |      |   | 200,000   |            |   |   | 1,295                                         |   |   |   | − |   |   |   | 679,898 |   |
| CFO and Executive Vice       |   | 2008   |   |   | 300,000 | (11)   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | 300,000 |   |
| President                    |   | 2009   |   |   | − |   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | − |   |
| (resigned 07/27/07)          |   | 2010   |   |   | − |   |      |   | −   |            |   |   | −                                       |   |   |   | − |   |   |   | − |   |

| (1) | Amounts represent the cash awards earned by the named executive officer under our performance-based annual incentive bonus.  For a discussion of the grant of these awards, see the accompanying footnotes below and “Employment Agreements and Other Agreements,” below. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The awards are payable on each vesting date 30% in cash and 70% with our common shares.  The cash components are included under Non-Equity Incentive Plan Compensation and the deferred shares components are included in Stock Awards.  Amounts include the dollar amount recognized for under GAAP for financial statement reporting purposes.  Amounts in the “Stock Awards” column reflect expense related to grants of deferred shares pursuant to our Employee Share Incentive Plans.  For a discussion of the assumptions used in the valuation of the awards included in the “Stock Awards” column, see Note 16 to our 2007-2010 audited financial statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) |  Amount includes a payment of $356,298 for options that expired in 2007.  The payment was authorized by the Compensation Committee on April 2, 2007 in order to provide employees of the Company who had held options for 10 years, the benefits of the long-held options which the employees were unable to exercise since the Company was not current in its financial reporting.  The Compensation Committee valued the options based on the weighted average closing price of the Company’s shares for the month of March 2007 ($28.61 per share). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amount includes $4,156 in dividends due on deferred share awards which were paid in cash. Dividend payments in cash were made in 2008 due to the fact that the Company was unable to issue dividends in common shares because the Company was not current in its financial reporting.  The Company has not declared a dividend since the first quarter 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Amounts include a payment of $345,373 for options that expired in 2007.  The payment was authorized by the Compensation Committee on April 2, 2007 in order to provide employees of the Company who had held options for 10 years, the benefits of the long-held options which the employees were unable to exercise since the Company was not current in its financial reporting.  The Compensation Committee valued the options based on the weighted average closing price of the Company’s shares for the month of March 2007 ($28.61 per share). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Amounts include $1,968 in dividends due on deferred share awards which were paid in cash. Dividend payments in cash were made in 2008 due to the fact that the Company was unable to issue dividends in common shares because the Company was not current in its financial reporting.  The Company has not declared a dividend since the first quarter 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Amounts include the 2007 award that vest one-fifth on the award date and one-fifth on each of the first four anniversaries of that date; except that no portion of the award vests until the Form 10-K for fiscal year 2006 is filed.  On February 13, 2009 the Company filed its Form 10-K for fiscal year 2006, which triggered the vesting of shares held from 2007, 2008 and 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Mr. Kay’s 2009 bonus was predominantly based on completing and filing the Company’s 2006 Annual Report on Form 10-K, which occurred in April 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Amounts include $2,018 in dividends due on deferred share awards which were paid in cash. Dividend payments in cash were made in 2008 due to the fact that the Company was unable to issue dividends in common shares because the Company was not current in its financial reporting.  The Company has not declared a dividend since the first quarter of 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Amounts include $580 in dividends due on deferred share awards which were paid in cash. Dividend payments in cash were made in 2008 due to the fact that the Company was unable to issue dividends in common shares because the Company was not current in its financial reporting.  The Company has not declared a dividend since the first quarter 2008. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes amounts for severance payments made to Ms. Lundquist, Ms. Netzer and Mr. Pinckney. |
|------|---------------------------------------------------------------------------------------------|

| (12) | Amounts include $747 in dividends due on deferred share awards which were paid in cash. Dividend payments in cash were made in 2008 due to the fact that the Company was unable to issue dividends in common shares because the Company was not current in its financial reporting.  The Company has not declared a dividend since the first quarter 2008. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                |   |   |   | Option Awards                                              |    | Stock Awards |                                                                     |
|---------------------|--------|--------|--------|-----------------------------------------------------------------|---------|-------------------|--------------------------------------------------------------------------|
| Name           |   | Year   |   | Number ofSecuritiesUnderlyingUnexercisedOptionsExercisable |    |              | Number ofSecuritiesUnderlyingUnexercised OptionsUn-exercisable |   |   | Option ExercisePrice |   | OptionExpiration Dateand VestingDate, AsApplicable |   | Number ofShares ThatHave NotVested |   |   | Market Value ofShares That HaveNot Vested (1) |   |
| Michael L. Falcone  |   | 2007   |   |                                                            | 30,362  | (2)               |                                                                     |   | − |   |   | $ | 16.87 |   | 04/24/07 |   |   | − |   |   | $ | − |   |
|                |   |   |   |                                                            | 100,932 |              |                                                                     |   | 100,932 | (3) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 918 | (5) |   |   | 13,623 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 1,318 | (6) |   |   | 19,559 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 629 | (6) |   |   | 9,334 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 628 | (7) |   |   | 9,320 |   |
|                |   | 2008   |   |                                                            | 151,398 |              |                                                                     |   | 50,466 | (4) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 628 | (7) |   |   | 170 |   |
|                |   | 2009   |   |                                                            | 201,863 |              |                                                                     |   | − |   |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   | 2010   |   |                                                            | 201,863 |              |                                                                     |   | − |   |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            | 166,667 |              |                                                                     |   | 333,333 | (8) |   |   | 0.23 |   | 05/05/20 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David Kay           |   | 2007   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 9,174 | (9) |   |   | 136,142 |   |
|                |   | 2008   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 9,174 | (9) |   |   | 2,477 |   |
|                |   | 2009   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 4,587 | (10) |   |   | 1,009 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gary A. Mentesana   |   | 2007   |   |                                                            | 29,431  | (11)              |                                                                     |   | − |   |   |   | 16.87 |   | 04/24/07 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            | 31,056  |              |                                                                     |   | 31,056 | (3) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 658 | (6) |   |   | 9,765 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 1,257 | (6) |   |   | 18,654 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 3,046 | (12) |   |   | 45,203 |   |
|                |   | 2008   |   |                                                            | 46,584  |              |                                                                     |   | 15,528 | (4) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 629 | (7) |   |   | 170 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 3,046 | (12) |   |   | 822 |   |
|                |   | 2009   |   |                                                            | 62,112  |              |                                                                     |   | − |   |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 1,218 | (13) |   |   | 268 |   |
|                |   | 2010   |   |                                                            | 62,112  |              |                                                                     |   | − |   |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            | 116,667 |              |                                                                     |   | 233,334 | (8) |   |   | 0.23 |   | 5/10/20 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 609 | (14) |   |   | 73 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charles M. Pinckney |   | 2007   |   |                                                            | 62,112  |              |                                                                     |   | 62,112 | (16) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            | − |              |                                                                     |   | 125,000 | (16) |   |   | 23.94 |   | 08/27/17 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 1,318 | (15) |   |   | 19,559 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 6,770 | (16) |   |   | 100,467 |   |
|                |   | 2008   |   |                                                            | 93,168  |              |                                                                     |   | 31,056 | (16) |   |   | 26.50 |   | 04/07/16 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            | 41,667  |              |                                                                     |   | 83,334 | (16) |   |   | 23.94 |   | 08/27/17 |   |   | − |   |   |   | − |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 6,770 | (16) |   |   | 1,828 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jenny Netzer        |   | 2007   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 4,922 |   |   |   | 73,040 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 4,528 | (17) |   |   | 67,196 |   |
|                |   | 2008   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 4,922 | (18) |   |   | 1,329 |   |
|                |   |   |   |                                                            |    |              |                                                                     |   |   |   |   |   |   |   |   |   |   | 2,264 | (18) |   |   | 611 |   |

| (1) | Market value calculated by multiplying the closing market price of MuniMae’s Common Stock on December 31st of each year by the number of unvested deferred shares. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Pursuant to a letter agreement dated April 5, 2007, outstanding options available under this 1997 option grant settled for $356,298.  FMV for the purposes of the settlement was $28.61 or the weighted average price for March 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3) | The remaining unvested stock options vested in equal increments on February 1, 2008 and 2009. |
|-----|-----------------------------------------------------------------------------------------------|

| (4) | The remaining unvested stock options vested vest in equal increments in 2009. |
|-----|-------------------------------------------------------------------------------|

| (5) | The remaining unvested deferred shares vested on January 1, 2008. |
|-----|-------------------------------------------------------------------|

| (6) | The remaining unvested deferred shares vested on February 1, 2008. |
|-----|--------------------------------------------------------------------|

| (7) | The remaining unvested deferred shares vested on February 1, 2009. |
|-----|--------------------------------------------------------------------|

| (8) | Pursuant to an option agreement dated May 5, 2010. The unvested stock options will vest in equal increments on May 5, 2011 and 2012. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (9) | The remaining unvested deferred shares vested on February 28, 2009 and 2010. |
|-----|------------------------------------------------------------------------------|

| (10) | The remaining unvested deferred shares vested on February 28, 2010. |
|------|---------------------------------------------------------------------|

| (11) | Pursuant to a letter agreement dated April 5, 2007, outstanding options available under this 1997 option grant settled for $345,373.  FMV for the purposes of the settlement was $28.61 or the weighted average price for March 2007. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | The remaining unvested deferred shares vested in equal increments on April 6, 2007 and February 1, 2008, 2009, 2010 and 2011, except that no portion of these shares vested until the filing of the Company’s 2006 Annual Report on Form 10-K. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | The remaining unvested deferred shares vested on February 1 2010 and 2011. |
|------|----------------------------------------------------------------------------|

| (14) | The remaining unvested deferred shares vested on February 1 2011. |
|------|-------------------------------------------------------------------|

| (15) | Mr. Pinckney rejected the 1,318 deferred shares that vested on February 1, 2008. |
|------|----------------------------------------------------------------------------------|

| (16) | All of these shares and options were forfeited on December 31, 2008, when Mr. Pinckney left the Company. |
|------|----------------------------------------------------------------------------------------------------------|

| (17) | Ms. Netzer rejected the 2,264 deferred shares that vested on February 1, 2008. |
|------|--------------------------------------------------------------------------------|

| (18) | All of these shares vested on February 6, 2009, when Ms. Netzer left the Company. |
|------|-----------------------------------------------------------------------------------|

|   | · | We may terminate the agreement for cause, which includes Mr. Falcone’s gross negligence, intentional misconduct, conviction of a serious crime, breach of certain non-competition restrictions or breach of the duty of loyalty. "Cause" also includes certain violations of the law and certain failures by Mr. Falcone to perform services reasonably requested of him. If we terminate the agreement for cause or Mr. Falcone terminates the agreement for other than good reason (as defined in the employment agreement), he will receive his base salary up through the date of termination but no portion of any incentive compensation for the fiscal year. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Upon termination of the agreement by (i) us without cause, (ii) Mr. Falcone for good reason or (iii) disability, Mr. Falcone is entitled to receive benefits through the date of termination, a cash severance up to $1,000,000 to be paid in four equal quarterly payments beginning on the first day of the first calendar month following the termination date, and any outstanding deferred cash and equity awards will become fully vested. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Mr. Falcone may terminate the agreement at any time after July 1, 2011, by providing thirty (30) days written notice. In such event, Mr. Falcone is entitled to receive $500,000 (in early termination compensation).  In the event of termination under such provision, Mr. Falcone will not be entitled to any unvested outstanding restricted or deferred share awards, share options or other type of award. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement provides for a death benefit equal to $1,000,000 in the event of Mr. Falcone's death. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | For a 12-month period following termination of his employment, Mr. Falcone may not compete with the Company, may not to divulge confidential Company information, and may not solicit Company employees or customers. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement requires us to indemnify Mr. Falcone from any and all liability for acts or omissions performed in the course of his employment. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We may terminate the agreement for cause, which includes Mr. Mentesana’s gross negligence, intentional misconduct, conviction of a serious crime, breach of certain non-competition restrictions or breach of the duty of loyalty. "Cause" also includes certain violations of the law and certain failures by Mr. Mentesana to perform services reasonably requested of him. If we terminate the agreement for cause or Mr. Mentesana terminates the agreement for other than good reason (as defined in the Agreement), he will receive his base salary up through the date of termination but no portion of any incentive compensation for the fiscal year. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Upon termination of the agreement by (i) us without cause, (ii) Mr. Mentesana for good reason or (iii) disability, Mr. Mentesana is entitled to receive benefits through the date of termination, a cash severance of $500,000 to be paid in four equal quarterly payments beginning on the first day of the first calendar month following the termination date, and any outstanding deferred cash and equity awards will become fully vested. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement provides for a death benefit equal to $500,000 in the event of Mr. Mentesana's death. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | For a 12-month period following termination of his employment, Mr. Mentesana has agreed not to compete with the Company, not to divulge confidential Company information, or solicit Company employees or customers. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement requires us to indemnify Mr. Mentesana from any and all liability for acts or omissions performed in the course of his employment. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We were entitled to terminate the agreement for cause, which included Mr. Kay’s intentional misconduct, conviction of a serious crime, breach of certain non-competition restrictions or breach of the duty of loyalty. "Cause" also included certain violations of the law and certain failures by Mr. Kay to perform services reasonably requested of him. If we terminated the agreement for cause or Mr. Kay terminated the agreement for other than good reason (defined below), he would have received his base compensation up through the date of termination but no portion of any incentive compensation for the fiscal year. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If we terminated the agreement without cause, Mr. Kay would have been entitled to receive his base compensation through the date of termination, a proportionate share of the incentive compensation that he would have earned for that year and a cash severance payment equal to two times his then current base compensation, but no such severance payment would have been made if Mr. Kay had received a change of control bonus as described above. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If Mr. Kay was terminated as a result of a disability, he was entitled to receive his base compensation through the date of termination, a proportionate share of the incentive compensation that he would have earned for that year and a cash severance payment equal to the greater of (1) his then current base compensation or (2) the base compensation that he would have received between the termination date and the expiration of the agreement. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If Mr. Kay terminated the agreement for good reason (e.g., reduction of compensation or diminution of duties), he was entitled to receive his base compensation through the date of termination, a proportionate share of the incentive compensation that he would have earned for that year and a cash severance payment equal to two times his then current base compensation, but no such severance payment would have been made if Mr. Kay had received a change of control bonus as described above. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Upon termination of the agreement by us without cause, by Mr. Kay for good reason or upon his death or disability, any outstanding deferred cash and equity awards were to have become fully vested. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement provided for a death benefit equal to two years’ base compensation in the event of Mr. Kay's death. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | For a 12-month period following termination of his employment, Mr. Kay agreed not to compete with the Company, and for a two year period following the termination of his employment, Mr. Kay agreed not to divulge confidential Company information, solicit Company employees or customers or disparage the Company. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The agreement required us to indemnify Mr. Kay from any and all liability for acts or omissions performed in the course of his employment, provided that such acts or omissions do not constitute (a) criminal conduct, (b) willful misconduct or (c) fraud. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                |   | Year   |   | Fees Earned orPaid in Cash (1) |    |   | StockAwards (2) |   |    | Change in value ofnonqualified deferredcompensation earnings (3) |   |   | Endingvalue ofdeferredshares |   |
|---------------------|--------|--------|--------|---------------------------------------------------------|---------|--------|----------------------|--------|---------|------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
| Charles C. Baum     |   | 2007   |   | $                                                       | 150,041 |   |                 | $      | 20,000  |                                                                                           |   | $      | (283,359                          | )      |   | $ | 461,161 |   |
|                |   | 2008   |   |                                                    | 115,049 |   |                 |   | 20,000  |                                                                                           |   |   | (429,758                          | )      |   |   | 31,403 |   |
|                |   | 2009   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | 2,951                             |   |   |   | 34,354 |   |
|                |   | 2010   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | (1,251                            | )      |   |   | 33,103 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Richard O. Berndt   |   | 2007   |   |                                                    | 109,588 |   |                 |   | 20,000  |                                                                                           |   |   | (220,659                          | )      |   |   | 350,788 |   |
|                |   | 2008   |   |                                                    | 97,051  |   |                 |   | 20,000  |                                                                                           |   |   | (344,098                          | )      |   |   | 6,690 |   |
|                |   | 2009   |   |                                                    | 45,328  |   |                 |   | − |                                                                                           |   |   | 13,175                            |   |   |   | 19,865 |   |
|                |   | 2010   |   |                                                    | − |   |                 |   | − |                                                                                           |   |   | (9,030                            | )      |   |   | 10,835 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Eddie C. Brown      |   | 2007   |   |                                                    | 77,743  |   |                 |   | 20,000  |                                                                                           |   |   | (70,623                           | )      |   |   | 185,901 |   |
|                |   | 2008   |   |                                                    | 83,624  |   |                 |   | 20,000  |                                                                                           |   |   | (166,274                          | )      |   |   | 19,640 |   |
|                |   | 2009   |   |                                                    | 41,412  |   |                 |   | − |                                                                                           |   |   | 4,229                             |   |   |   | 23,869 |   |
|                |   | 2010   |   |                                                    | − |   |                 |   | − |                                                                                           |   |   | (10,850                           | )      |   |   | 13,020 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Robert S. Hillman   |   | 2007   |   |                                                    | 149,149 |   |                 |   | 20,000  |                                                                                           |   |   | (269,985                          | )      |   |   | 453,361 |   |
|                |   | 2008   |   |                                                    | 100,375 |   |                 |   | 20,000  |                                                                                           |   |   | (425,301                          | )      |   |   | 28,060 |   |
|                |   | 2009   |   |                                                    | 47,076  |   |                 |   | − |                                                                                           |   |   | 6,348                             |   |   |   | 34,408 |   |
|                |   | 2010   |   |                                                    | − |   |                 |   | − |                                                                                           |   |   | (15,640                           | )      |   |   | 18,768 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Barbara B. Lucas    |   | 2007   |   |                                                    | 92,847  |   |                 |   | 20,000  |                                                                                           |   |   | 35,816                            |   |   |   | 113,794 |   |
|                |   | 2008   |   |                                                    | 90,042  |   |                 |   | 20,000  |                                                                                           |   |   | (92,594                           | )      |   |   | 21,200 |   |
|                |   | 2009   |   |                                                    | 42,410  |   |                 |   | − |                                                                                           |   |   | 5,458                             |   |   |   | 26,658 |   |
|                |   | 2010   |   |                                                    | − |   |                 |   | − |                                                                                           |   |   | (12,117                           | )      |   |   | 14,541 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Douglas A. McGregor |   | 2007   |   |                                                    | 137,754 |   |                 |   | 20,000  |                                                                                           |   |   | (164,987                          | )      |   |   | 348,145 |   |
|                |   | 2008   |   |                                                    | 113,410 |   |                 |   | 20,000  |                                                                                           |   |   | (318,151                          | )      |   |   | 29,994 |   |
|                |   | 2009   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | 5,417                             |   |   |   | 35,411 |   |
|                |   | 2010   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | (1,732                            | )      |   |   | 33,679 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Arthur S. Mehlman   |   | 2007   |   |                                                    | 81,000  |   |                 |   | 20,000  |                                                                                           |   |   | −                           |   |   |   | − |   |
|                |   | 2008   |   |                                                    | 114,250 |   |                 |   | 20,000  |                                                                                           |   |   | −                           |   |   |   | − |   |
|                |   | 2009   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | 18,038                            |   |   |   | 18,038 |   |
|                |   | 2010   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | 6,165                             |   |   |   | 24,203 |   |
|                |   |   |   |                                                    |    |   |                 |   |    |                                                                                           |   |   |                              |   |   |   |   |   |
| Fred N. Pratt, J    |   | 2007   |   |                                                    | 99,783  |   |                 |   | 20,000  |                                                                                           |   |   | (66,559                           | )      |   |   | 218,153 |   |
|                |   | 2008   |   |                                                    | 93,624  |   |                 |   | 20,000  |                                                                                           |   |   | (197,669                          | )      |   |   | 20,484 |   |
|                |   | 2009   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | 14,588                            |   |   |   | 35,072 |   |
|                |   | 2010   |   |                                                    | 50,000  |   |                 |   | − |                                                                                           |   |   | (1,578                            | )      |   |   | 33,494 |   |

| (1) | Amounts shown for fees earned in 2007 were deferred at the election of the director as follows: Messrs. Baum, Berndt, Brown, Hillman, McGregor, Pratt and Ms. Lucas made elections under the Non-Employee Directors’ Share Plans to defer 100% of their fees.  Amounts shown for fees earned in 2009 and 2010 were capped at $50,000 and paid as follows: Messrs. Baum, Berndt, , Hillman, McGregor, Mehlman and Ms. Lucas made elections under the Non-Employee Directors’ Share Plans to receive restricted shares delivered at the end of each quarter; Messrs. Pratt and Brown elected deferred shares. Messrs. Brown, Hillman, and Ms. Lucas resigned from the board on September 30, 2009 and Mr. Berndt resigned on January 20, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts shown for restricted share awards refer to the director’s annual equity award converted into restricted shares using the closing price of the Company’s common stock on the date of the annual shareholders meeting.  Since no annual shareholders meeting was held in 2007 and 2008 the Equity Awards were not granted.  Such unpaid Equity Awards will be paid at the next annual meeting of shareholders. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amounts represent solely the determined aggregate change in the director’s accumulated benefit under our deferred compensation program from December 31, 2006 to December 31, 2010. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                |   | Year   |   | ExercisableOptions (1) |    |   | Un-exercisableOptions |   |
|---------------------|--------|--------|--------|-----------------------------|---------|--------|-----------------------|--------|
| Charles C. Baum     |   | 2007   |   |                        | 25,000  |   |                  |   | − |   |
|                |   | 2008   |   |                        | 22,500  |   |                  |   | − |   |
|                |   | 2009   |   |                        | 20,000  |   |                  |   | − |   |
|                |   | 2010   |   |                        | 15,000  |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Richard O. Berndt   |   | 2007   |   |                        | 17,000  |   |                  |   | − |   |
|                |   | 2008   |   |                        | 16,000  |   |                  |   | − |   |
|                |   | 2009   |   |                        | 16,000  |   |                  |   | − |   |
|                |   | 2010   |   |                        | 15,000  |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Eddie C. Brown      |   | 2007   |   |                        | 12,000  |   |                  |   | − |   |
|                |   | 2008   |   |                        | 12,000  |   |                  |   | − |   |
|                |   | 2009   |   |                        | 12,000  |   |                  |   | − |   |
|                |   | 2010   |   |                        | − |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Robert S. Hillman   |   | 2007   |   |                        | 25,000  |   |                  |   | − |   |
|                |   | 2008   |   |                        | 22,500  |   |                  |   | − |   |
|                |   | 2009   |   |                        | 20,000  |   |                  |   | − |   |
|                |   | 2010   |   |                        | − |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Barbara B. Lucas    |   | 2007   |   |                        | 4,666   |   |                  |   | 2,333 |   |
|                |   | 2008   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2009   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2010   |   |                        | − |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Douglas A. McGregor |   | 2007   |   |                        | 22,500  |   |                  |   | − |   |
|                |   | 2008   |   |                        | 22,500  |   |                  |   | − |   |
|                |   | 2009   |   |                        | 20,000  |   |                  |   | − |   |
|                |   | 2010   |   |                        | 15,000  |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Arthur S. Mehlman   |   | 2007   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2008   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2009   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2010   |   |                        | 7,000   |   |                  |   | − |   |
|                |   |   |   |                        |    |   |                  |   |   |   |
| Fred N. Pratt, J    |   | 2007   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2008   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2009   |   |                        | 7,000   |   |                  |   | − |   |
|                |   | 2010   |   |                        | 7,000   |   |                  |   | − |   |

| (1) | The weighted average exercise price per share for the exercisable options were $23.35, $23.50, $23.78 and $24.44 for the years ended December 31, 2007, 2008, 2009 and 2010, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

| Name (1)                                    |   | Amount and Nature ofBeneficial Ownership |      |   | Percent of Class (5) |   |
|--------------------------------------------------|--------|--------------------------------------------------------------|-----------|--------|-------------------------------------|--------|
| Directors:                                       |   |                                                         |      |   |                                |   |
| Mark K. Joseph                                   |   |                                                         | 1,081,953 | (2)    |                                |   | 2.68 | % |
| Michael L. Falcone                               |   |                                                         | 543,839   | (3)    |                                |   | 1.35 |   |
| Charles C. Baum                                  |   |                                                         | 184,928   | (4)    |                                |   | * |   |
| Douglas A. McGregor                              |   |                                                         | 214,887   | (4)    |                                |   | * |   |
| Arthur S. Mehlman                                |   |                                                         | 68,198    | (4)    |                                |   | * |   |
| Fred N. Pratt, Jr.                               |   |                                                         | 82,687    | (4)    |                                |   | * |   |
| Non-Director Named Executive Officers:           |   |                                                         |      |   |                                |   |   |   |
| David Kay                                        |   |                                                         | 13,761    |   |                                |   | * |   |
| Gary A. Mentesana                                |   |                                                         | 369,189   |   |                                |   | * |   |
| All Directors and Executive Officers (8 persons) |   |                                                         | 2,559,442 |   |                                |   | 6.34 |   |

| * | Represents less than 1.0% of the total number of common shares outstanding. |
|---|-----------------------------------------------------------------------------|

| (1) | An address for each person listed in the table below is c/o Municipal Mortgage & Equity, LLC, Pier IV Building, 621 E.  Pratt Street, Suite 600, Baltimore, MD 21202. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amount includes 754,674 shares of Common Stock held indirectly by Mr. Joseph as follows: SCA Associates 95-II Limited Partnership - 277,982; SCA Associates 86-II Limited Partnership - 203,140; The Shelter Policy Institute I, Inc.  - 187,466; SDC Associates Limited Partnership - 50,786; Shelter Development Holdings, Inc.  - 26,729; SCA Custodial Co.  Inc.  - 5,084; MME I Corporation - 3,483; and MME II Corporation - 4. Mr. Joseph disclaims beneficial ownership of such shares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amount includes 45,439 shares of Common Stock held indirectly by Mr. Falcone as follows: SCA Associates 95-II Limited Partnership – 26,741; SCA Associates 86-II Limited Partnership – 6,094; SDC Associates Limited Partnership – 12,026 and the Michael and Beth Falcone Foundation - 578.  Mr. Falcone disclaims beneficial ownership of such shares. Excludes shares of Common Stock indirectly held by Mr. Falcone (except for the 578 shares of Common Stock held by Mr. Falcone through the Michael and Beth Falcone Family Foundation) since these common shares are presented in the number of common shares beneficially owned by Mr. Joseph. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amount excludes shares earned by directors but not yet issued. On December 31, 2010 the amounts of earned shares not issued were: Baum 119,747, McGregor 120,588, Mehlman 144,321 and Pratt 203,430. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Percent of class is based upon shares of Common Stock issued and outstanding, and shares which could have been acquired within 60 days of December 31, 2010 pursuant to the exercise of stock options and/or the vesting of deferred/restricted shares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Equity Compensation Plans       |   | Number of Securities to be IssuedUpon Exercise of OutstandingOptions, Warrants and Rights |      |   | Weighted-Average ExercisePrice of OutstandingOptions, Warrants andRights (1) |   |   | Number of Securities Remainfor Future Issuance UnderEquity Compensation Plans(Excluding Securities reflectedin First Column) |   |
|-------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Employee shares incentive plans           |   |                                                                                                                                             | 1,145,031 |   |                                                                                                       | $      | 7.01   |                                                                                                                                                                                     |   |   | 1,237,993 |   |
| Non-employee directors’ share plans |   |                                                                                                                                             | 59,000    |   |                                                                                                       |   | 24.44  |                                                                                                                                                                                     |   |   | 553,641 |   |
| Total                                     |   |                                                                                                                                             | 1,204,031 |   |                                                                                                       |   |   |                                                                                                                                                                                     |   |   | 1,791,634 |   |

| (1) | The weighted-average exercise price does not include the 233,256 shares issuable upon vesting of outstanding deferred shares from the employee share incentive plans and 3,517 shares issuable upon vesting of outstanding restricted shares from the non-employee  directors’ share plans, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

----

----

| (in thousands)                |   | 2010   |    |   | 2009   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|
|                               |   |   |    |   |   |   |
| Audit fees (1)                     |   | $      | 4,055   |   |   | $      | 1,925 |   |
| Audit related fees                 |   |   | − |   |   |   | − |   |
| Total audit and audit related fees |   |   | 4,055   |   |   |   | 1,925 |   |
| Tax fees                           |   |   | − |   |   |   | − |   |
| All other fees                     |   |   | − |   |   |   | − |   |
| Total KPMG fees (2)                |   | $      | 4,055   |   |   | $      | 1,925 |   |

| (1) | Audit fees include fees for the audit of the consolidated financial statements, separate audits of certain subsidiaries and services that are normally provided in connection with statutory and regulatory filings or engagements. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The total audit and audit related fees are presented on the basis of when these fees were billed to the Company.  In 2009, the Company completed the audit of its restated 2004 and 2005 financial statements and the audit of the 2006 financial statements.  The financial statements for the 2007, 2008 and 2009 periods were primarily prepared and audited in 2010.  The 2010 financial statements were primarily audited in the first quarter of 2011 and the Company expects to be billed approximately $0.9 million in audit and audit related fees for the Company’s consolidated audit and certain subsidiary audits. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | The following is a list of the consolidated financial statements included at the end of this Report: |
|-----|------------------------------------------------------------------------------------------------------|

| (2) | Financial Statement Schedules: |
|-----|--------------------------------|

| (3) | Exhibit Index |
|-----|---------------|

----

|                                   | MUNICIPAL MORTGAGE & EQUITY, LLC |
|----------------------------------------|--------------------------------------|
|                                   |                                 |   |
|                                   | By:                             |   | /s/ Michael L.  Falcone |
|                                   |                                 | Name:   | Michael L.  Falcone |
| Dated:   March 31, 2011 |                                 | Title: | Chief Executive Officer and President |
|                                   |                                 |   | (Principal Executive Officer) |

| By:    |              | /s/ Michael L.  Falcone                          |   | March 31, 2011 |
|--------|-------------------|------------------------------------------------------------|--------|---------------------|
|   | Name:   | Michael L.  Falcone                              |   |
|   | Title:            | Chief Executive Officer, President and Director            |   |
|   |              | (Principal Executive Officer)                              |   |
|   |              |                                                       |   |
| By:    |              | /s/ David Kay                                              |   | March 31, 2011 |
|   | Name:             | David Kay                                                  |   |
|   | Title:            | Chief Financial Officer and Executive Vice President       |   |
|   |              | (Principal Financial Officer and Chief Accounting Officer) |   |

| By: |   | /s/ Mark K.  Joseph |   | March 31, 2011 |
|-----|--------|-------------------------------|--------|---------------------|

|                  | Name:  | Mark K.  Joseph          |   |
|-----------------------|--------|------------------------------------|--------|
|                  | Title: | Chairman of the Board of Directors |   |
|                  |   |                               |   |
| By:                   |   | /s/ Charles C.  Baum     |   | March 31, 2011 |
|                  | Name:  | Charles C.  Baum         |   |
|                  | Title: | Director                           |   |
|                  |   |                               |   |
| By:    |   | /s/ Douglas A.  McGregor |   | March 31, 2011 |
|                  | Name:  | Douglas A.  McGregor     |   |
|                  | Title: | Director                           |   |

----

| By:    |              | /s/ Arthur S.  Mehlman  |   | March 31, 2011 |
|-----------------------|-------------------|-----------------------------------|--------|---------------------|
|                  | Name:   | Arthur S.  Mehlman      |   |
|                  | Title:            | Director                          |   |
|                  |              |                              |   |
| By:                   |              | /s/ Fred N.  Pratt, Jr. |   | March 31, 2011 |
|                  | Name:             | Fred N.  Pratt, Jr.     |   |
|                  | Title:            | Director                          |   |

----

----

|                                                                                                                                                                                                                                                                              |   | December 31,2010 |      |   | December 31,2009 |   |      | December 31,2008 |   |   | December 31,2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|--------|-----------------------|--------|-----------|-----------------------|--------|--------|-----------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                            |   |                  |      |   |                  |   |      |                  |   |   |                  |   |
| Cash and cash equivalents (Note 1)                                                                                                                                                                                                                                                |   | $                     | 32,544    |   |                  | $      | 18,084    |                  |   | $      | 41,089                |   |   | $ | 48,807 |   |
| Restricted cash                                                                                                                                                                                                                                                                   |   |                  | 24,987    |   |                  |   | 21,762    |                  |   |   | 38,083                |   |   |   | 43,277 |   |
| Bonds available-for-sale (includes $1,197,180; $1,327,089; $1,405,039 and $1,976,756 pledged as collateral)                                                                                                                                                                       |   |                  | 1,231,036 |   |                  |   | 1,348,133 |                  |   |   | 1,426,439             |   |   |   | 2,113,411 |   |
| Loans held for investment, net of allowance for loan losses (includes $53,096; $64,714; $113,466 and $157,620 pledged as collateral)                                                                                                                                              |   |                  | 53,933    |   |                  |   | 65,958    |                  |   |   | 115,036               |   |   |   | 163,149 |   |
| Loans held for sale (includes $18,024; $61,275; $232,402 and $423,255 pledged as collateral)                                                                                                                                                                                      |   |                  | 18,989    |   |                  |   | 64,020    |                  |   |   | 242,306               |   |   |   | 513,991 |   |
| Investment in preferred stock (includes $2,000 and $5,000 pledged as collateral)                                                                                                                                                                                                  |   |                  | 36,371    |   |                  |   | 36,857    |                  |   |   | −               |   |   |   | − |   |
| Investments in unconsolidated ventures (includes $6,450; zero; $98,889 and $358,744 pledged as collateral)                                                                                                                                                                        |   |                  | 6,842     |   |                  |   | 66        |                  |   |   | 102,422               |   |   |   | 397,065 |   |
| Mortgage servicing rights                                                                                                                                                                                                                                                         |   |                  | −   |   |                  |   | −   |                  |   |   | 97,973                |   |   |   | 95,110 |   |
| Goodwill and other intangibles, net                                                                                                                                                                                                                                               |   |                  | −   |   |                  |   | −   |                  |   |   | 81,292                |   |   |   | 111,195 |   |
| Derivative assets                                                                                                                                                                                                                                                                 |   |                  | 6,812     |   |                  |   | 6,291     |                  |   |   | 11,310                |   |   |   | 11,423 |   |
| Other assets (includes $12,527; $12,632; $14,071; and zero pledged as collateral)                                                                                                                                                                                                 |   |                  | 46,027    |   |                  |   | 80,034    |                  |   |   | 100,500               |   |   |   | 119,998 |   |
| Assets of consolidated funds and ventures (Notes 1 and 20):                                                                                                                                                                                                                       |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Investments in Lower Tier Property Partnerships                                                                                                                                                                                                                                   |   |                  | 436,971   |   |                  |   | 499,714   |                  |   |   | 4,501,665             |   |   |   | 4,800,496 |   |
| Other assets                                                                                                                                                                                                                                                                      |   |                  | 165,024   |   |                  |   | 128,791   |                  |   |   | 601,883               |   |   |   | 649,569 |   |
| Total assets of consolidated funds and ventures                                                                                                                                                                                                                                   |   |                  | 601,995   |   |                  |   | 628,505   |                  |   |   | 5,103,548             |   |   |   | 5,450,065 |   |
| Total assets                                                                                                                                                                                                                                                                      |   | $                     | 2,059,536 |   |                  | $      | 2,269,710 |                  |   | $      | 7,359,998             |   |   | $ | 9,067,491 |   |
|                                                                                                                                                                                                                                                                              |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                                                                            |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Debt                                                                                                                                                                                                                                                                              |   | $                     | 1,277,415 |   |                  | $      | 1,447,916 |                  |   | $      | 1,758,531             |   |   | $ | 2,490,871 |   |
| Guarantee obligations                                                                                                                                                                                                                                                             |   |                  | 7,235     |   |                  |   | 4,090     |                  |   |   | 18,398                |   |   |   | 15,780 |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                             |   |                  | 18,890    |   |                  |   | 37,453    |                  |   |   | 59,574                |   |   |   | 72,600 |   |
| Derivative liabilities                                                                                                                                                                                                                                                            |   |                  | 20,153    |   |                  |   | 18,449    |                  |   |   | 43,080                |   |   |   | 45,209 |   |
| Deferred revenue                                                                                                                                                                                                                                                                  |   |                  | 1,290     |   |                  |   | 7,503     |                  |   |   | 33,797                |   |   |   | 83,503 |   |
| Other liabilities                                                                                                                                                                                                                                                                 |   |                  | 6,333     |   |                  |   | 7,725     |                  |   |   | 23,343                |   |   |   | 31,212 |   |
| Unfunded equity commitments to investments in unconsolidated ventures                                                                                                                                                                                                             |   |                  | −   |   |                  |   | −   |                  |   |   | 82,388                |   |   |   | 286,091 |   |
| Liabilities of consolidated funds and ventures (Notes 1 and 20):                                                                                                                                                                                                                  |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Debt                                                                                                                                                                                                                                                                              |   |                  | 3,709     |   |                  |   | 3,892     |                  |   |   | 434,846               |   |   |   | 779,121 |   |
| Unfunded equity commitments to Lower Tier Property Partnerships                                                                                                                                                                                                                   |   |                  | 20,970    |   |                  |   | 43,871    |                  |   |   | 536,811               |   |   |   | 945,107 |   |
| Other liabilities                                                                                                                                                                                                                                                                 |   |                  | 3,136     |   |                  |   | 4,684     |                  |   |   | 119,900               |   |   |   | 107,588 |   |
| Total liabilities of consolidated funds and ventures                                                                                                                                                                                                                              |   |                  | 27,815    |   |                  |   | 52,447    |                  |   |   | 1,091,557             |   |   |   | 1,831,816 |   |
| Total liabilities                                                                                                                                                                                                                                                                 |   | $                     | 1,359,131 |   |                  | $      | 1,575,583 |                  |   | $      | 3,110,668             |   |   | $ | 4,857,082 |   |
|                                                                                                                                                                                                                                                                              |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                                                                     |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
|                                                                                                                                                                                                                                                                              |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Equity:                                                                                                                                                                                                                                                                           |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Perpetual preferred shareholders’ equity in a subsidiary company, liquidation  preference of $173,000 for all years presented                                                                                                                                     |   | $                     | 168,686   |   |                  | $      | 168,686   |                  |   | $      | 168,686               |   |   | $ | 168,686 |   |
| Noncontrolling interests in consolidated funds and ventures (net of $1,922; $4,286; $804,855 and $1,671,827 of subscriptions receivable)                                                                                                                                     |   |                  | 569,556   |   |                  |   | 567,383   |                  |   |   | 3,990,061             |   |   |   | 3,524,201 |   |
| Common shareholders’ equity:                                                                                                                                                                                                                                                |   |                  |      |   |                  |   |      |                  |   |   |                  |   |   |   |   |   |
| Common shares, no par value (40,204,049; 40,048,446; 39,177,133 and 39,125,359 shares issued and outstanding and 647,782; 314,992; 685,807 and 264,514 non-employee directors’ and employee deferred shares issued at December 31, 2010, 2009, 2008 and 2007, respectively) |   |                  | (130,466  | )      |                  |   | (101,876  | )                     |   |   | 41,684                |   |   |   | 424,395 |   |
| Accumulated other comprehensive income                                                                                                                                                                                                                                            |   |                  | 92,629    |   |                  |   | 59,934    |                  |   |   | 48,899                |   |   |   | 93,127 |   |
| Total common shareholders’ equity (deficit)                                                                                                                                                                                                                                 |   |                  | (37,837   | )      |                  |   | (41,942   | )                     |   |   | 90,583                |   |   |   | 517,522 |   |
| Total equity                                                                                                                                                                                                                                                                      |   |                  | 700,405   |   |                  |   | 694,127   |                  |   |   | 4,249,330             |   |   |   | 4,210,409 |   |
| Total liabilities and equity                                                                                                                                                                                                                                                      |   | $                     | 2,059,536 |   |                  | $      | 2,269,710 |                  |   | $      | 7,359,998             |   |   | $ | 9,067,491 |   |

----

|                                                                                          |   | For the years endedDecember 31, |    |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                                                          |   | 2010                                                |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| REVENUE                                                                                       |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Interest income:                                                                              |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Interest on bonds                                                                             |   | $                                                   | 84,864  |   |   | $ | 95,737 |   |   | $ | 115,084 |   |   | $ | 141,580 |   |
| Interest on loans                                                                             |   |                                                | 6,663   |   |   |   | 14,874 |   |   |   | 32,554 |   |   |   | 68,819 |   |
| Interest on short-term investments                                                            |   |                                                | 170     |   |   |   | 357 |   |   |   | 1,374 |   |   |   | 1,639 |   |
| Total interest income                                                                         |   |                                                | 91,697  |   |   |   | 110,968 |   |   |   | 149,012 |   |   |   | 212,038 |   |
|                                                                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fee and other income:                                                                         |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Syndication fees                                                                              |   |                                                | 2,028   |   |   |   | 2,273 |   |   |   | 8,483 |   |   |   | 10,372 |   |
| Asset management and advisory fees                                                            |   |                                                | 1,203   |   |   |   | 7,240 |   |   |   | 10,035 |   |   |   | 5,855 |   |
| Income on preferred stock investment                                                          |   |                                                | 6,524   |   |   |   | 4,247 |   |   |   | − |   |   |   | − |   |
| Other income                                                                                  |   |                                                | 3,297   |   |   |   | 5,021 |   |   |   | 11,028 |   |   |   | 9,965 |   |
| Total fee and other income                                                                    |   |                                                | 13,052  |   |   |   | 18,781 |   |   |   | 29,546 |   |   |   | 26,192 |   |
|                                                                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue from consolidated funds and ventures                                                  |   |                                                | 2,928   |   |   |   | 5,022 |   |   |   | 5,521 |   |   |   | 19,954 |   |
| Total revenue                                                                                 |   |                                                | 107,677 |   |   |   | 134,771 |   |   |   | 184,079 |   |   |   | 258,184 |   |
|                                                                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                                      |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                              |   |                                                | 66,573  |   |   |   | 79,566 |   |   |   | 115,590 |   |   |   | 131,713 |   |
| Salaries and benefits                                                                         |   |                                                | 12,185  |   |   |   | 21,641 |   |   |   | 34,749 |   |   |   | 34,380 |   |
| General and administrative                                                                    |   |                                                | 7,460   |   |   |   | 13,621 |   |   |   | 18,802 |   |   |   | 15,818 |   |
| Professional fees                                                                             |   |                                                | 14,641  |   |   |   | 18,310 |   |   |   | 90,980 |   |   |   | 69,880 |   |
| Impairment on bonds                                                                           |   |                                                | 20,561  |   |   |   | 41,474 |   |   |   | 126,936 |   |   |   | 27,071 |   |
| Provision for credit losses                                                                   |   |                                                | 4,440   |   |   |   | 1,343 |   |   |   | 32,864 |   |   |   | 49,759 |   |
| Impairment of goodwill and other intangibles                                                  |   |                                                | − |   |   |   | − |   |   |   | − |   |   |   | 5,786 |   |
| Other expenses                                                                                |   |                                                | 9,926   |   |   |   | 20,230 |   |   |   | 19,973 |   |   |   | 23,739 |   |
| Expenses from consolidated funds and ventures                                                 |   |                                                | 5,989   |   |   |   | 11,101 |   |   |   | 9,501 |   |   |   | 7,196 |   |
| Total expenses                                                                                |   |                                                | 141,775 |   |   |   | 207,286 |   |   |   | 449,395 |   |   |   | 365,342 |   |
|                                                                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net gains (losses) on sale of bonds                                                           |   |                                                | 3,212   |   |   |   | (3,249 | ) |   |   | (14,509 | ) |   |   | 6,507 |   |
| Net gains (losses) on loans                                                                   |   |                                                | 5,689   |   |   |   | (14,527 | ) |   |   | (16,480 | ) |   |   | 3,222 |   |
| Net (losses) gains on derivatives                                                             |   |                                                | (7,924  | ) |   |   | 2,239 |   |   |   | (28,608 | ) |   |   | (16,723 | ) |
| Net gains (losses) on sale of unconsolidated ventures                                         |   |                                                | 3,500   |   |   |   | (960 | ) |   |   | 5,166 |   |   |   | − |   |
| Net gains (losses) on early extinguishments of liabilities                                    |   |                                                | 7,328   |   |   |   | 4,821 |   |   |   | (626 | ) |   |   | 3,991 |   |
| Equity in (losses) earnings from unconsolidated ventures                                      |   |                                                | (217    | ) |   |   | (1,710 | ) |   |   | (666 | ) |   |   | 4,160 |   |
| Equity in losses from Lower Tier Property Partnerships                                        |   |                                                | (46,658 | ) |   |   | (59,149 | ) |   |   | (51,875 | ) |   |   | (32,362 | ) |
| Loss from continuing operations before income taxes                                           |   |                                                | (69,168 | ) |   |   | (145,050 | ) |   |   | (372,914 | ) |   |   | (138,363 | ) |
| Income tax benefit (expense)                                                                  |   |                                                | 772     |   |   |   | (608 | ) |   |   | (135 | ) |   |   | (3,023 | ) |
| Loss from discontinued operations, net of tax                                                 |   |                                                | (4,061  | ) |   |   | (234,474 | ) |   |   | (500,519 | ) |   |   | (432,185 | ) |
| Net loss                                                                                      |   |                                                | (72,457 | ) |   |   | (380,132 | ) |   |   | (873,568 | ) |   |   | (573,571 | ) |
| (Income) loss allocable to noncontrolling interests:                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company                  |   |                                                | (9,865  | ) |   |   | (9,372 | ) |   |   | (9,208 | ) |   |   | (9,424 | ) |
| Net losses (income) allocable to noncontrolling interests in consolidated funds and ventures: |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related to continuing operations                                                              |   |                                                | 53,854  |   |   |   | 67,738 |   |   |   | 57,634 |   |   |   | 24,484 |   |
| Related to discontinued operations                                                            |   |                                                | (241    | ) |   |   | 177,926 |   |   |   | 451,287 |   |   |   | 460,319 |   |
| Net loss to common shareholders                                                               |   | $                                                   | (28,709 | ) |   | $ | (143,840 | ) |   | $ | (373,855 | ) |   | $ | (98,192 | ) |

----

|                                       |   | For the years endedDecember 31, |   |
|--------------------------------------------|--------|-----------------------------------------------------|--------|
|                                       |   | 2010                                                |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Basic and diluted loss per common share:   |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations            |   | $                                                   | (0.60  | ) |   | $ | (2.18 | ) |   | $ | (8.21 | ) |   | $ | (3.22 | ) |
| (Loss) income from discontinued operations |   |                                                | (0.11  | ) |   |   | (1.41 | ) |   |   | (1.24 | ) |   |   | 0.72 |   |
| Loss per common share                      |   | $                                                   | (0.71  | ) |   | $ | (3.59 | ) |   | $ | (9.45 | ) |   | $ | (2.50 | ) |
|                                       |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding |   |                                                | 40,548 |   |   |   | 40,052 |   |   |   | 39,553 |   |   |   | 39,278 |   |

----

|                                                                                     |   | For the years endedDecember 31, |    |
|------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                                                     |   | 2010                                                |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                     |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                 |   | $                                                   | (72,457 | ) |   | $ | (380,132 | ) |   | $ | (873,568 | ) |   | $ | (573,571 | ) |
|                                                                                     |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss) allocable to common shareholders:                      |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on bonds available-for-sale:                                   |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized net holding gains (losses) arising during the period                          |   |                                                | 14,591  |   |   |   | (27,663 | ) |   |   | (164,656 | ) |   |   | (27,181 | ) |
| Reversal of unrealized gains on sold/redeemed bonds                                      |   |                                                | (3,367  | ) |   |   | (2,194 | ) |   |   | (6,635 | ) |   |   | (7,753 | ) |
| Reclassification of unrealized losses to income                                          |   |                                                | 20,561  |   |   |   | 41,474 |   |   |   | 126,936 |   |   |   | 27,071 |   |
| Reclassification of unrealized (gains) losses due to consolidation of funds and ventures |   |                                                | − |   |   |   | − |   |   |   | (91 | ) |   |   | 4 |   |
| Total unrealized gains (losses) on bonds available-for-sale                              |   |                                                | 31,785  |   |   |   | 11,617 |   |   |   | (44,446 | ) |   |   | (7,859 | ) |
| Currency translation adjustment                                                          |   |                                                | 910     |   |   |   | (582 | ) |   |   | 218 |   |   |   | (39 | ) |
| Other comprehensive income (loss) allocable to common shareholders                       |   |                                                | 32,695  |   |   |   | 11,035 |   |   |   | (44,228 | ) |   |   | (7,898 | ) |
|                                                                                     |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss) allocable to noncontrolling interests:                 |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Currency translation adjustment                                                          |   |                                                | 6,884   |   |   |   | − |   |   |   | − |   |   |   | − |   |
|                                                                                     |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                                                       |   | $                                                   | (32,878 | ) |   | $ | (369,097 | ) |   | $ | (917,796 | ) |   | $ | (581,469 | ) |

----

|                                                                                               |   | Common Shares |    |   | AccumulatedOtherComprehensiveIncome (Loss) |   |     | CommonShareholders’Equity |   |   | PerpetualPreferredShareholders’Equity |   |   | NoncontrollingInterest inConsolidatedFunds andVentures |     |   | Total  |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------------------------------------|--------|----------|---------------------------------|--------|--------|---------------------------------------------|--------|--------|------------------------------------------------------------------|----------|--------|--------|--------|
|                                                                                               |   | Number             |    |   | Amount                                          |   |     |                            |   |   |                                        |   |   |                                                             |     |   |   |   |   |   |   |
|                                                                                               |   |               |    |   |                                            |   |     |                            |   |   |                                        |   |   |                                                             |     |   |   |   |   |   |   |
| Balance, December 31, 2006                                                                         |   |               | 38,694  |   |                                            | $      | 566,890  |                            |   | $      | 101,025                                     |   |   | $                                                                | 667,915  |   |   | $      | 168,686 |   |   | $ | 2,639,749 |   |   | $ | 3,476,350 |   |
| Net (loss) income                                                                                  |   |               | − |   |                                            |   | (98,192  | )                               |   |   | −                                     |   |   |                                                             | (98,192  | )      |   |   | 9,424 |   |   |   | (484,803 | ) |   |   | (573,571 | ) |
| Other comprehensive loss                                                                           |   |               | − |   |                                            |   | −  |                            |   |   | (7,898                                      | )      |   |                                                             | (7,898   | )      |   |   | − |   |   |   | − |   |   |   | (7,898 | ) |
| Distributions                                                                                      |   |               | − |   |                                            |   | (81,814  | )                               |   |   | −                                     |   |   |                                                             | (81,814  | )      |   |   | (9,424 | ) |   |   | (94,658 | ) |   |   | (185,896 | ) |
| Common and deferred shares issued under employee and non-employee director share plans             |   |               | 224     |   |                                            |   | 3,300    |                            |   |   | −                                     |   |   |                                                             | 3,300    |   |   |   | − |   |   |   | − |   |   |   | 3,300 |   |
| Mark to market activity for liability classified awards previously classified as equity            |   |               | − |   |                                            |   | 2,325    |                            |   |   | −                                     |   |   |                                                             | 2,325    |   |   |   | − |   |   |   | − |   |   |   | 2,325 |   |
| Issuance of common shares related to business acquisition                                          |   |               | 472     |   |                                            |   | 12,969   |                            |   |   | −                                     |   |   |                                                             | 12,969   |   |   |   | − |   |   |   | − |   |   |   | 12,969 |   |
| Cumulative effect of a change in accounting principle                                              |   |               | − |   |                                            |   | 18,917   |                            |   |   | −                                     |   |   |                                                             | 18,917   |   |   |   | − |   |   |   | − |   |   |   | 18,917 |   |
| Contributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 1,442,031 |   |   |   | 1,442,031 |   |
| Net change due to consolidation or disposition                                                     |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 21,882 |   |   |   | 21,882 |   |
| Balance, December 31, 2007                                                                         |   |               | 39,390  |   |                                            |   | 424,395  |                            |   |   | 93,127                                      |   |   |                                                             | 517,522  |   |   |   | 168,686 |   |   |   | 3,524,201 |   |   |   | 4,210,409 |   |
| Net (loss) income                                                                                  |   |               | − |   |                                            |   | (373,855 | )                               |   |   | −                                     |   |   |                                                             | (373,855 | )      |   |   | 9,208 |   |   |   | (508,921 | ) |   |   | (873,568 | ) |
| Other comprehensive loss                                                                           |   |               | − |   |                                            |   | −  |                            |   |   | (44,228                                     | )      |   |                                                             | (44,228  | )      |   |   | − |   |   |   | − |   |   |   | (44,228 | ) |
| Distributions                                                                                      |   |               | − |   |                                            |   | (13,024  | )                               |   |   | −                                     |   |   |                                                             | (13,024  | )      |   |   | (9,208 | ) |   |   | (36,623 | ) |   |   | (58,855 | ) |
| Common and deferred shares issued under employee and non-employee share plans                      |   |               | 473     |   |                                            |   | 1,405    |                            |   |   | −                                     |   |   |                                                             | 1,405    |   |   |   | − |   |   |   | − |   |   |   | 1,405 |   |
| Mark to market activity for liability classified awards previously classified as equity            |   |               | − |   |                                            |   | 2,763    |                            |   |   | −                                     |   |   |                                                             | 2,763    |   |   |   | − |   |   |   | − |   |   |   | 2,763 |   |
| Contributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 998,017 |   |   |   | 998,017 |   |
| Net change due to consolidation or disposition                                                     |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 13,387 |   |   |   | 13,387 |   |
| Balance, December 31, 2008                                                                         |   |               | 39,863  |   |                                            |   | 41,684   |                            |   |   | 48,899                                      |   |   |                                                             | 90,583   |   |   |   | 168,686 |   |   |   | 3,990,061 |   |   |   | 4,249,330 |   |
| Net (loss) income                                                                                  |   |               | − |   |                                            |   | (143,840 | )                               |   |   | −                                     |   |   |                                                             | (143,840 | )      |   |   | 9,372 |   |   |   | (245,664 | ) |   |   | (380,132 | ) |
| Other comprehensive income                                                                         |   |               | − |   |                                            |   | −  |                            |   |   | 11,035                                      |   |   |                                                             | 11,035   |   |   |   | − |   |   |   | − |   |   |   | 11,035 |   |
| Distributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | (9,372 | ) |   |   | (14,067 | ) |   |   | (23,439 | ) |
| Common, restricted and deferred shares issued under employee and non-employee director share plans |   |               | 500     |   |                                            |   | 213      |                            |   |   | −                                     |   |   |                                                             | 213      |   |   |   | − |   |   |   | − |   |   |   | 213 |   |
| Mark to market activity for liability classified awards previously classified as equity            |   |               | − |   |                                            |   | 67       |                            |   |   | −                                     |   |   |                                                             | 67       |   |   |   | − |   |   |   | − |   |   |   | 67 |   |
| Contributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 239,475 |   |   |   | 239,475 |   |
| Net change due to consolidation or disposition                                                     |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | (3,402,422 | ) |   |   | (3,402,422 | ) |
| Balance, December 31, 2009                                                                         |   |               | 40,363  |   |                                            |   | (101,876 | )                               |   |   | 59,934                                      |   |   |                                                             | (41,942  | )      |   |   | 168,686 |   |   |   | 567,383 |   |   |   | 694,127 |   |
| Net (loss) income                                                                                  |   |               | − |   |                                            |   | (28,709  | )                               |   |   | −                                     |   |   |                                                             | (28,709  | )      |   |   | 9,865 |   |   |   | (53,613 | ) |   |   | (72,457 | ) |
| Other comprehensive income                                                                         |   |               | − |   |                                            |   | −  |                            |   |   | 32,695                                      |   |   |                                                             | 32,695   |   |   |   | − |   |   |   | 6,884 |   |   |   | 39,579 |   |
| Distributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | (9,865 | ) |   |   | (6,236 | ) |   |   | (16,101 | ) |
| Common, restricted and deferred shares issued under employee and non-employee director share plans |   |               | 488     |   |                                            |   | 116      |                            |   |   | −                                     |   |   |                                                             | 116      |   |   |   | − |   |   |   | − |   |   |   | 116 |   |
| Mark to market activity for liability classified awards previously classified as equity            |   |               | − |   |                                            |   | 3        |                            |   |   | −                                     |   |   |                                                             | 3        |   |   |   | − |   |   |   | − |   |   |   | 3 |   |
| Contributions                                                                                      |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 37,812 |   |   |   | 37,812 |   |
| Net change due to consolidation or disposition                                                     |   |               | − |   |                                            |   | −  |                            |   |   | −                                     |   |   |                                                             | −  |   |   |   | − |   |   |   | 17,326 |   |   |   | 17,326 |   |
| Balance, December 31, 2010                                                                         |   |               | 40,851  |   |                                            | $      | (130,466 | )                               |   | $      | 92,629                                      |   |   | $                                                                | (37,837  | )      |   | $      | 168,686 |   |   | $ | 569,556 |   |   | $ | 700,405 |   |

----

|                                                                                                             |   | For the years endedDecember 31, |     |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|----------|
|                                                                                                             |   | 2010                                                |     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                            |   |                                                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                         |   | $                                                   | (72,457  | ) |   | $ | (380,132 | ) |   | $ | (873,568 | ) |   | $ | (573,571 | ) |
| Less net loss attributable to noncontrolling interests                                                           |   |                                                | (43,748  | ) |   |   | (236,292 | ) |   |   | (499,713 | ) |   |   | (475,379 | ) |
| Net loss to common shareholders                                                                                  |   |                                                | (28,709  | ) |   |   | (143,840 | ) |   |   | (373,855 | ) |   |   | (98,192 | ) |
| Adjustments to reconcile net loss to common shareholders to net cash provided by (used in) operating activities: |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (gains) losses on sales of bonds and loans                                                                   |   |                                                | (8,901   | ) |   |   | 15,569 |   |   |   | 11,982 |   |   |   | (29,516 | ) |
| Net losses (gains) on sales of real estate and businesses                                                        |   |                                                | 1,665    |   |   |   | 58,323 |   |   |   | (41,251 | ) |   |   | (26,328 | ) |
| Provisions for credit losses and impairment                                                                      |   |                                                | 23,705   |   |   |   | 80,765 |   |   |   | 351,717 |   |   |   | 219,333 |   |
| Equity in losses, net from investments in partnerships                                                           |   |                                                | 46,875   |   |   |   | 198,430 |   |   |   | 384,517 |   |   |   | 361,703 |   |
| Net losses allocable to noncontrolling interests from consolidated funds and ventures                            |   |                                                | (53,614  | ) |   |   | (245,663 | ) |   |   | (508,921 | ) |   |   | (484,803 | ) |
| Income allocable to perpetual preferred shareholders of a subsidiary company                                     |   |                                                | 9,865    |   |   |   | 9,372 |   |   |   | 9,208 |   |   |   | 9,424 |   |
| Distributions received from investments in partnerships                                                          |   |                                                | −  |   |   |   | − |   |   |   | 11,598 |   |   |   | 6,752 |   |
| Purchases, advances on and originations of loans held for sale                                                   |   |                                                | (375     | ) |   |   | (88,108 | ) |   |   | (839,905 | ) |   |   | (978,489 | ) |
| Principal payments and sales proceeds received on loans held for sale                                            |   |                                                | 15,920   |   |   |   | 135,303 |   |   |   | 947,354 |   |   |   | 1,172,700 |   |
| Other                                                                                                            |   |                                                | 14,058   |   |   |   | (42,615 | ) |   |   | 24,937 |   |   |   | (2,643 | ) |
| Net cash provided by (used in) operating activities                                                              |   |                                                | 20,489   |   |   |   | (22,464 | ) |   |   | (22,619 | ) |   |   | 149,941 |   |
|                                                                                                             |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                            |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances on and purchases of bonds                                                                               |   |                                                | (5,950   | ) |   |   | (7,598 | ) |   |   | (68,138 | ) |   |   | (280,822 | ) |
| Principal payments and sales proceeds received on bonds                                                          |   |                                                | 51,037   |   |   |   | 63,800 |   |   |   | 74,627 |   |   |   | 78,747 |   |
| Advances on and originations of loans held for investment                                                        |   |                                                | (94      | ) |   |   | (8,087 | ) |   |   | (59,176 | ) |   |   | (234,010 | ) |
| Principal payments received on loans held for investment                                                         |   |                                                | 39,675   |   |   |   | 62,869 |   |   |   | 184,024 |   |   |   | 282,676 |   |
| Purchases of real estate and property and equipment                                                              |   |                                                | (47,769  | ) |   |   | (232,632 | ) |   |   | (648,069 | ) |   |   | (990,994 | ) |
| Proceeds from the sale of real estate and businesses                                                             |   |                                                | 5,879    |   |   |   | 100,917 |   |   |   | 166,275 |   |   |   | 81,318 |   |
| Acquisition of assets and businesses                                                                             |   |                                                | −  |   |   |   | − |   |   |   | − |   |   |   | (11,072 | ) |
| Decrease (increase) in restricted cash and cash of consolidated funds and ventures                               |   |                                                | 16,413   |   |   |   | 59,338 |   |   |   | (21,025 | ) |   |   | (23,588 | ) |
| Investments in partnerships                                                                                      |   |                                                | (226     | ) |   |   | (1,149 | ) |   |   | (5,456 | ) |   |   | (19,967 | ) |
| Capital distributions received from investments in partnerships                                                  |   |                                                | 683      |   |   |   | 9,149 |   |   |   | 19,542 |   |   |   | 52,713 |   |
| Net cash provided by (used in) investing activities                                                              |   |                                                | 59,648   |   |   |   | 46,607 |   |   |   | (357,396 | ) |   |   | (1,064,999 | ) |
|                                                                                                             |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                            |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net proceeds from borrowing activity                                                                             |   |                                                | 14,248   |   |   |   | 266,852 |   |   |   | 2,176,690 |   |   |   | 3,179,259 |   |
| Repayment of borrowings                                                                                          |   |                                                | (100,438 | ) |   |   | (502,036 | ) |   |   | (2,697,497 | ) |   |   | (3,124,314 | ) |
| Payment of debt issue costs                                                                                      |   |                                                | (1,198   | ) |   |   | (2,546 | ) |   |   | (10,277 | ) |   |   | (2,260 | ) |
| Contributions from holders of noncontrolling interests                                                           |   |                                                | 37,812   |   |   |   | 213,857 |   |   |   | 962,236 |   |   |   | 1,047,991 |   |
| Distributions paid to holders of noncontrolling interests                                                        |   |                                                | (6,236   | ) |   |   | (14,067 | ) |   |   | (36,623 | ) |   |   | (94,658 | ) |
| Distributions paid to perpetual preferred shareholders of a subsidiary company                                   |   |                                                | (9,865   | ) |   |   | (9,208 | ) |   |   | (9,208 | ) |   |   | (9,424 | ) |
| Distributions paid to common shareholders                                                                        |   |                                                | −  |   |   |   | − |   |   |   | (13,024 | ) |   |   | (81,814 | ) |
| Net cash (used in) provided by financing activities                                                              |   |                                                | (65,677  | ) |   |   | (47,148 | ) |   |   | 372,297 |   |   |   | 914,780 |   |
|                                                                                                             |   |                                                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                             |   |                                                | 14,460   |   |   |   | (23,005 | ) |   |   | (7,718 | ) |   |   | (278 | ) |
| Unrestricted cash and cash equivalents at beginning of period                                                    |   |                                                | 18,084   |   |   |   | 41,089 |   |   |   | 48,807 |   |   |   | 49,085 |   |
| Unrestricted cash and cash equivalents at end of period (Note 1)                                                 |   | $                                                   | 32,544   |   |   | $ | 18,084 |   |   | $ | 41,089 |   |   | $ | 48,807 |   |

----

|                                                                                                    |   | For the years endedDecember 31, |    |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                                                                    |   | 2010                                                |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                                        |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Interest paid                                                                                           |   | $                                                   | 55,688  |   |   | $ | 83,816 |   |   | $ | 140,888 |   |   | $ | 161,707 |   |
| Income taxes paid                                                                                       |   |                                                | 42      |   |   |   | 101 |   |   |   | 135 |   |   |   | 7,224 |   |
| Interest capitalized                                                                                    |   |                                                | − |   |   |   | 831 |   |   |   | 5,242 |   |   |   | 20,022 |   |
|                                                                                                    |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities:                                                            |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt assumed upon acquisition of interests in securitization trusts                                     |   |                                                | 634     |   |   |   | 52,534 |   |   |   | 30,500 |   |   |   | 244,170 |   |
| Debt and liabilities extinguished through sales and collections on bonds                                |   |                                                | 93,617  |   |   |   | 52,795 |   |   |   | 521,175 |   |   |   | 18,261 |   |
| Common shares issued to settle debt                                                                     |   |                                                | − |   |   |   | − |   |   |   | − |   |   |   | 12,969 |   |
| Transfer of loans to settle debt                                                                        |   |                                                | − |   |   |   | 96,952 |   |   |   | 8,093 |   |   |   | 17,114 |   |
| (Decrease) increase in unfunded commitments for equity investments                                      |   |                                                | (20,100 | ) |   |   | (295,618 | ) |   |   | (612,704 | ) |   |   | 16,334 |   |
| Increase in assets due to initial consolidation of funds and ventures                                   |   |                                                | 45,692  |   |   |   | − |   |   |   | 15,520 |   |   |   | 23,905 |   |
| Increase in liabilities and noncontrolling interests due to initial consolidation of funds and ventures |   |                                                | 45,692  |   |   |   | − |   |   |   | 16,009 |   |   |   | 25,546 |   |
| Decrease in assets due to deconsolidation of funds and ventures                                         |   |                                                | 29,141  |   |   |   | 172,089 |   |   |   | 77,953 |   |   |   | 6,809 |   |
| Decrease in liabilities and noncontrolling interests due to deconsolidation of funds and ventures       |   |                                                | 25,107  |   |   |   | 184,363 |   |   |   | 81,141 |   |   |   | 20,158 |   |
| Subscription receivable and related debt extinguishment                                                 |   |                                                | − |   |   |   | 25,618 |   |   |   | 35,781 |   |   |   | 394,040 |   |
| Assets received in troubled debt restructuring                                                          |   |                                                | 9,450   |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Unrealized gains (losses) included in other comprehensive income                                        |   |                                                | 39,579  |   |   |   | 11,035 |   |   |   | (44,228 | ) |   |   | (7,898 | ) |

----

|   | · | Tax Credit Equity (“TCE”) - A business which created investment funds and finds investors for such funds that receive tax credits for investing in affordable housing partnerships (these funds are called Low Income Housing Tax Credit Funds or “LIHTC Funds”). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Bonds - A business which originates and invests primarily in tax-exempt bonds secured by affordable housing. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | Affordable Debt - A business which originates and invests in loans secured by affordable housing. |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | Agency Lending - A business which originated both market rate and affordable housing multifamily loans with the intention of selling them to government sponsored entities (i.e., Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) collectively referred to as agencies (“Agencies”) or through programs created by them.  This division also sold permanent loans to third party investors and the loans are guaranteed by the Government National Mortgage Association (“Ginnie Mae”) and insured by the United States Department of Housing and Urban Development (“HUD”). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Merchant Banking - A business which provided loan and bond originations, loan servicing, asset management, investment advisory and other services to institutional investors that finance or invest in various commercial real estate projects, including the sale of permanent loans to third party investors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | TEB’s leverage ratio was 59.9%, which was effectively at the incurrence limit of 60%; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | TEB’s liquidation preference ratios were at amounts that would restrict it from raising additional preferred equity on parity with the existing preferred shares outstanding; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | TEB’s ability to distribute cash to MuniMae was and continues to be limited to Distributable Cash Flows (TEB’s net income adjusted to exclude the impact of non-cash items) and TEB does not have the ability to make redemptions of common stock or distributions to MuniMae other than Distributable Cash Flows (“Restricted Payments”) because the current liquidation preference ratios prohibit it. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provides for forbearance from the minimum net asset value requirement and the financial reporting requirement contained in the interest rate swap agreements until the earlier of June 30, 2012 or when TEB is in compliance with its leverage and liquidation incurrence ratios. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires the Company to post a portion of the common distributions that are remitted to the Company as follows: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | o | For quarterly distributions beginning in the fourth quarter of 2010 and continuing through to the third quarter of 2011, the Company will post restricted dividends with the Counterparty that are equal to 50% of common distributions less $0.8 million. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | For quarterly distributions beginning in the fourth quarter of 2011 and continuing until TEB is in compliance with both its leverage ratio and liquidation preference ratios, the Company will post restricted dividends with the Counterparty equal to 50% of common distributions.  Once TEB is in compliance with its leverage ratio and liquidation preference ratios there will be no restrictions on common distributions. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | Under the first step (indication of impairment), the fair value of the reporting unit (which is based on a discounted cash flow analysis) is compared to the carrying value of the reporting unit (including goodwill).  If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Under step two (measurement of impairment), an impairment loss is recognized for any excess carrying amount of the reporting unit’s goodwill over the implied fair value for that goodwill.  The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation.  The residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

----

----

|                   |   | December 31, 2010 |      |
|------------------------|--------|-----------------------------|-----------|
| (in thousands)    |   | UnpaidPrincipalBalance      |      |   | BasisAdjustments (1) |   |   | UnrealizedLosses |   |   | UnrealizedGain |   |   | Fair Value |   |
| Mortgage revenue bonds |   | $                           | 1,196,695 |   |   | $ | (7,852 | ) |   | $ | (145,684 | ) |   | $ | 69,883 |   |   | $ | 1,113,042 |   |
| Other bonds            |   |                        | 148,793   |   |   |   | (13,369 | ) |   |   | (39,590 | ) |   |   | 22,160 |   |   |   | 117,994 |   |
| Total                  |   | $                           | 1,345,488 |   |   | $ | (21,221 | ) |   | $ | (185,274 | ) |   | $ | 92,043 |   |   | $ | 1,231,036 |   |

|                   |   | December 31, 2009 |      |
|------------------------|--------|-----------------------------|-----------|
| (in thousands)    |   | UnpaidPrincipalBalance      |      |   | BasisAdjustments (1) |   |   | UnrealizedLosses |   |   | UnrealizedGain |   |   | Fair Value |   |
| Mortgage revenue bonds |   | $                           | 1,313,944 |   |   | $ | (9,451 | ) |   | $ | (134,313 | ) |   | $ | 40,517 |   |   | $ | 1,210,697 |   |
| Other bonds            |   |                        | 171,570   |   |   |   | (18,262 | ) |   |   | (35,614 | ) |   |   | 19,742 |   |   |   | 137,436 |   |
| Total                  |   | $                           | 1,485,514 |   |   | $ | (27,713 | ) |   | $ | (169,927 | ) |   | $ | 60,259 |   |   | $ | 1,348,133 |   |

|                   |   | December 31, 2008 |      |
|------------------------|--------|-----------------------------|-----------|
| (in thousands)    |   | UnpaidPrincipalBalance      |      |   | BasisAdjustments (1) |   |   | UnrealizedLosses |   |   | UnrealizedGain |   |   | Fair Value |   |
| Mortgage revenue bonds |   | $                           | 1,430,671 |   |   | $ | (29,014 | ) |   | $ | (107,013 | ) |   | $ | 48,103 |   |   | $ | 1,342,747 |   |
| Other bonds            |   |                        | 114,695   |   |   |   | (1,279 | ) |   |   | (30,263 | ) |   |   | 539 |   |   |   | 83,692 |   |
| Total                  |   | $                           | 1,545,366 |   |   | $ | (30,293 | ) |   | $ | (137,276 | ) |   | $ | 48,642 |   |   | $ | 1,426,439 |   |

|                   |   | December 31, 2007 |      |
|------------------------|--------|-----------------------------|-----------|
| (in thousands)    |   | UnpaidPrincipalBalance      |      |   | BasisAdjustments (1) |   |   | UnrealizedLosses |   |   | UnrealizedGain |   |   | Fair Value |   |
| Mortgage revenue bonds |   | $                           | 1,546,127 |   |   | $ | (29,012 | ) |   | $ | (35,174 | ) |   | $ | 87,871 |   |   | $ | 1,569,812 |   |
| Other bonds            |   |                        | 556,667   |   |   |   | 665 |   |   |   | (18,951 | ) |   |   | 5,218 |   |   |   | 543,599 |   |
| Total                  |   | $                           | 2,102,794 |   |   | $ | (28,347 | ) |   | $ | (54,125 | ) |   | $ | 93,089 |   |   | $ | 2,113,411 |   |

|   | (1) | Includes premiums, discounts and deferred costs. |
|--------|-----|--------------------------------------------------|

----

|                                                             |   | December 31, 2010 |      |
|------------------------------------------------------------------|--------|-----------------------------|-----------|
| (in thousands)                                              |   | Amortized Cost         |      |   | Fair Value |   |
| Non-Amortizing:                                                  |   |                        |      |   |   |   |
| Due in less than one year                                        |   | $                           | −   |   |   | $ | − |   |
| Due between one and five years                                   |   |                        | −   |   |   |   | − |   |
| Due between five and ten years                                   |   |                        | −   |   |   |   | − |   |
| Due after ten years                                              |   |                        | 20,172    |   |   |   | 40,641 |   |
| Amortizing:                                                      |   |                        | −   |   |   |   | − |   |
| Due at stated maturity dates between December 2013 and June 2056 |   |                        | 1,118,821 |   |   |   | 1,190,395 |   |
|                                                             |   | $                           | 1,138,993 |   |   | $ | 1,231,036 |   |

|                                                                             |   | December 31, 2010  |      |
|----------------------------------------------------------------------------------|--------|------------------------------|-----------|
| (in thousands)                                                              |   | Unpaid PrincipalBalance |      |   | AmortizedCost |   |   | Fair Value |   |
| Bonds that may be prepaid without restrictions or penalties at December 31, 2010 |   | $                            | 143,088   |   |   | $ | 111,529 |   |   | $ | 133,144 |   |
| 2011                                                                             |   |                         | 18,775    |   |   |   | 16,437 |   |   |   | 17,473 |   |
| 2012                                                                             |   |                         | 31,284    |   |   |   | 25,658 |   |   |   | 26,646 |   |
| 2013                                                                             |   |                         | 16,871    |   |   |   | 14,968 |   |   |   | 15,964 |   |
| 2014                                                                             |   |                         | 29,163    |   |   |   | 28,814 |   |   |   | 30,169 |   |
| Thereafter                                                                       |   |                         | 1,005,550 |   |   |   | 856,303 |   |   |   | 910,894 |   |
| Bonds that may not be prepaid                                                    |   |                         | 100,757   |   |   |   | 85,284 |   |   |   | 96,746 |   |
| Total                                                                            |   | $                            | 1,345,488 |   |   | $ | 1,138,993 |   |   | $ | 1,231,036 |   |

|                                                                 |   | For the years ended December 31, |    |
|----------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                                                  |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Bond impairment recognized on bonds held at each period-end          |   | $                                                         | (19,944 | ) |   | $ | (39,456 | ) |   | $ | (105,998 | ) |   | $ | (26,195 | ) |
| Bond impairment recognized on bonds sold/redeemed during each period |   |                                                      | (617    | ) |   |   | (2,018 | ) |   |   | (20,938 | ) |   |   | (876 | ) |
| Losses recognized at time of sale/redemption                         |   |                                                      | − |   |   |   | (4,732 | ) |   |   | (20,777 | ) |   |   | (178 | ) |
| Gains recognized at time of sale/redemption                          |   |                                                      | 3,212   |   |   |   | 1,483 |   |   |   | 6,268 |   |   |   | 6,685 |   |
| Total net losses on bonds                                            |   | $                                                         | (17,349 | ) |   | $ | (44,723 | ) |   | $ | (141,445 | ) |   | $ | (20,564 | ) |

----

| (in thousands)      |   | December 31,2010 |   |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|--------------------------|--------|-----------------------|--------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Construction             |   | $                     | 5,601  |   |                  | $      | 40,135  |                  |   | $      | 58,143                |   |   | $ | 153,366 |   |
| Permanent                |   |                  | 20,647 |   |                  |   | 27,103  |                  |   |   | 46,612                |   |   |   | 151,912 |   |
| Bridge                   |   |                  | 1,793  |   |                  |   | 3,230   |                  |   |   | 125,925               |   |   |   | 173,717 |   |
| Other                    |   |                  | 640    |   |                  |   | 26,134  |                  |   |   | 27,521                |   |   |   | 43,634 |   |
|                     |   |                  | 28,681 |   |                  |   | 96,602  |                  |   |   | 258,201               |   |   |   | 522,629 |   |
| LOCOM Adjustment         |   |                  | (9,692 | )      |                  |   | (32,582 | )                     |   |   | (15,895               | )      |   |   | (8,638 | ) |
| Loans held for sale, net |   | $                     | 18,989 |   |                  | $      | 64,020  |                  |   | $      | 242,306               |   |   | $ | 513,991 |   |

----

|                              |   | For the years ended December 31, |    |
|-----------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)               |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Balance-January 1,                |   | $                                                         | 32,582  |   |   | $ | 15,895 |   |   | $ | 8,638 |   |   | $ | − |   |
| LOCOM adjustments                 |   |                                                      | (208    | ) |   |   | 16,622 |   |   |   | 12,946 |   |   |   | 8,638 |   |
| Recoveries and (charge-offs), net |   |                                                      | (22,682 | ) |   |   | 65 |   |   |   | (5,689 | ) |   |   | − |   |
| Balance-December 31,              |   | $                                                         | 9,692   |   |   | $ | 32,582 |   |   | $ | 15,895 |   |   | $ | 8,638 |   |

| (in thousands)            |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|--------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Construction                   |   | $                     | 31,776  |   |                  | $      | 39,677  |                  |   | $      | 64,495                |   |   | $ | 64,115 |   |
| Permanent                      |   |                  | 9,048   |   |                  |   | 9,382   |                  |   |   | 9,626                 |   |   |   | 10,149 |   |
| Bridge                         |   |                  | 27,177  |   |                  |   | 27,159  |                  |   |   | 91,091                |   |   |   | 107,456 |   |
| Other                          |   |                  | 19,645  |   |                  |   | 18,978  |                  |   |   | 19,868                |   |   |   | 18,303 |   |
|                           |   |                  | 87,646  |   |                  |   | 95,196  |                  |   |   | 185,080               |   |   |   | 200,023 |   |
| Allowance for loan losses      |   |                  | (33,713 | )      |                  |   | (29,238 | )                     |   |   | (70,044               | )      |   |   | (36,874 | ) |
| Loans held for investment, net |   | $                     | 53,933  |   |                  | $      | 65,958  |                  |   | $      | 115,036               |   |   | $ | 163,149 |   |

| (in thousands) |   | TotalCurrent |   |   | 30-59 DaysPast Due |   |    | 60-89 DaysPast Due |   |   | Greater Than90 Days |   |
|---------------------|--------|--------------|--------|--------|------------------------------|--------|---------|------------------------------|--------|--------|-------------------------------|--------|
| December 31, 2010   |   | $            | 46,472 |   |                         | $      | − |                         |   | $      | −                       |   |   | $ | 7,461 |   |

| (in thousands)                           |   | December 31,2010 |    |   | December 31,2009 |   |   | December 31,2008 |   |   | December 31,2007 |   |
|-----------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Impaired loans with a specific reserve        |   | $                     | 9,450   |   |                  | $      | 31,803 |                  |   | $      | 82,420                |   |   | $ | 54,028 |   |
| Impaired loans without a specific reserve (1) |   |                  | − |   |                  |   | 21,777 |                  |   |   | 35,325                |   |   |   | 27,091 |   |
| Total impaired loans                          |   | $                     | 9,450   |   |                  | $      | 53,580 |                  |   | $      | 117,745               |   |   | $ | 81,119 |   |
|                                          |   |                  |    |   |                  |   |   |                  |   |   |                  |   |   |   |   |   |
| Average carrying value of impaired loans      |   | $                     | 9,847   |   |                  | $      | 57,370 |                  |   | $      | 117,389               |   |   | $ | 59,550 |   |

|   | (1) | A loan is impaired when it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement; however, when the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, the loan does not require a specific reserve. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | For the years ended December 31, |    |
|------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Balance-January 1,                 |   | $                                                         | 29,238  |   |   | $ | 70,044 |   |   | $ | 36,874 |   |   | $ | 10,877 |   |
| Provision for loan losses          |   |                                                      | 4,440   |   |   |   | 1,343 |   |   |   | 32,864 |   |   |   | 50,380 | (1) |
| (Charge-offs) and recoveries, net  |   |                                                      | 35      |   |   |   | (42,149 | ) |   |   | 306 |   |   |   | (1,428 | ) |
| Transfer of HFI loans to HFS loans |   |                                                      | − |   |   |   | − |   |   |   | − |   |   |   | (22,955 | ) |
| Balance-December 31,               |   | $                                                         | 33,713  |   |   | $ | 29,238 |   |   | $ | 70,044 |   |   | $ | 36,874 |   |

|   | (1) | Does not include a $0.6 million provision reduction related to the release of reserves for unfunded loan commitments that was recorded in 2007.  The reserve for unfunded loan commitments is recorded through “Other liabilities.” |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                                               |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|-------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Investments in Real Estate Related Entities                       |   | $                     | 6,842   |   |                  | $      | 66      |                  |   | $      | 14,680                |   |   | $ | 35,610 |   |
| Investments in unconsolidated Lower Tier Property Partnerships    |   |                  | − |   |                  |   | − |                  |   |   | 84,992                |   |   |   | 358,705 |   |
| Investments in Common Stock of Special Purpose Financing Entities |   |                  | − |   |                  |   | − |                  |   |   | 2,750                 |   |   |   | 2,750 |   |
| Total investment in unconsolidated ventures                       |   | $                     | 6,842   |   |                  | $      | 66      |                  |   | $      | 102,422               |   |   | $ | 397,065 |   |

| (in thousands)                     |   | December 31,2010 |   |   | December 31,2009 |   |   | December 31,2008 |   |   | December 31,2007 |   |
|-----------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Investments in unconsolidated ventures: |   |                  |   |   |                  |   |   |                  |   |   |                  |   |
| Total assets (primarily real estate)    |   | $                     | 66,601 |   |                  | $      | 40,103 |                  |   | $      | 603,199               |   |   | $ | 906,352 |   |
| Total liabilities (primarily debt)      |   |                  | 22,600 |   |                  |   | 115    |                  |   |   | 301,593               |   |   |   | 529,382 |   |

----

|                                                  |   | For the years ended December 31, |    |
|-------------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                                   |   | 2009                                                      |    |   | 2008 |   |   | 2007 |   |
| Balance-January 1,                                    |   | $                                                         | 97,973  |   |   | $ | 95,110 |   |   | $ | 72,074 |   |
| Cumulative effect of change in accounting principle   |   |                                                      | − |   |   |   | − |   |   |   | 18,917 |   |
| MSRs retained on sales of loans                       |   |                                                      | 1,615   |   |   |   | 18,116 |   |   |   | 15,741 |   |
| MSRs applied to acquisition pipeline                  |   |                                                      | − |   |   |   | 73 |   |   |   | 463 |   |
| Fair value changes in valuation inputs or assumptions |   |                                                      | 13      |   |   |   | (12,152 | ) |   |   | (6,995 | ) |
| Fair value changes due to payments                    |   |                                                      | (633    | ) |   |   | (3,174 | ) |   |   | (5,090 | ) |
| MSRs sold through sale of business                    |   |                                                      | (98,968 | ) |   |   | − |   |   |   | − |   |
| Balance-December 31,                                  |   | $                                                         | − |   |   | $ | 97,973 |   |   | $ | 95,110 |   |

|                                    |   | December 31, 2008 |   | December 31, 2007 |
|-----------------------------------------|--------|-----------------------------|--------|-----------------------------|
| Weighted-average discount rate          |   | 10.93%                      |   | 11.25%                      |
| Weighted-average call protection period |   | 8.7 years                   |   | 8.3 years                   |
| Weighted-average escrow earnings rate   |   | 3%                          |   | 3.8%                        |

----

| (in thousands) |   | Tax CreditEquity |    |   | AgencyLending |   |    | MerchantBanking |   |   | Total   |   |
|---------------------|--------|-----------------------|---------|--------|---------------|--------|---------|-----------------|--------|--------|---------|--------|
| January 1, 2007     |   | $                     | 71,104  |   |          | $      | 25,539  |            |   | $      | 5,785   |   |   | $ | 102,428 |   |
| Acquisitions        |   |                  | − |   |          |   | − |            |   |   | 10,512  |   |   |   | 10,512 |   |
| Impairment          |   |                  | − |   |          |   | − |            |   |   | (16,297 | )      |   |   | (16,297 | ) |
| Other (1)           |   |                  | (1,119  | )      |          |   | − |            |   |   | − |   |   |   | (1,119 | ) |
| December 31, 2007   |   |                  | 69,985  |   |          |   | 25,539  |            |   |   | − |   |   |   | 95,524 |   |
| Impairment          |   |                  | − |   |          |   | (25,539 | )               |   |   | − |   |   |   | (25,539 | ) |
| December 31, 2008   |   |                  | 69,985  |   |          |   | − |            |   |   | − |   |   |   | 69,985 |   |
| Sale of business    |   |                  | (69,985 | )      |          |   | − |            |   |   | − |   |   |   | (69,985 | ) |
| December 31, 2009   |   | $                     | − |   |          | $      | − |            |   | $      | − |   |   | $ | − |   |

| (1) | Income tax benefit realized from the amortization of goodwill for tax reporting purposes. |
|-----|-------------------------------------------------------------------------------------------|

----

| (in thousands)               |   | December 31,2010 |   |   | December 31,2009 |   |   | December 31,2008 |   |   | December 31,2007 |   |
|-----------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Other assets:                     |   |                  |   |   |                  |   |   |                  |   |   |                  |   |
| Accrued interest receivable       |   | $                     | 10,793 |   |                  | $      | 13,019 |                  |   | $      | 16,502                |   |   | $ | 24,133 |   |
| Property and equipment, net       |   |                  | 1,453  |   |                  |   | 16,204 |                  |   |   | 19,148                |   |   |   | 24,851 |   |
| Federal and state tax receivables |   |                  | 5,539  |   |                  |   | 14,945 |                  |   |   | 15,133                |   |   |   | 13,149 |   |
| Debt issue costs, net             |   |                  | 10,349 |   |                  |   | 12,932 |                  |   |   | 15,568                |   |   |   | 15,250 |   |
| Real estate owned                 |   |                  | 13,231 |   |                  |   | 12,998 |                  |   |   | 14,281                |   |   |   | 3,474 |   |
| Other assets                      |   |                  | 4,662  |   |                  |   | 9,936  |                  |   |   | 19,868                |   |   |   | 39,141 |   |
| Total other assets                |   | $                     | 46,027 |   |                  | $      | 80,034 |                  |   | $      | 100,500               |   |   | $ | 119,998 |   |

|                                   |   | Fair Value             |    |
|----------------------------------------|--------|-----------------------------|---------|
|                                   |   | December 31, 2010 |    |   | December 31, 2009 |   |   | December 31, 2008 |   |   | December 31, 2007 |   |
| (in thousands)                    |   | Assets                      |    |   | Liabilities |   |   | Assets |   |   | Liabilities |   |   | Assets |   |   | Liabilities |   |   | Assets |   |   | Liabilities |   |
|                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps                    |   | $                           | 6,812   |   |   | $ | 19,561 |   |   | $ | 6,154 |   |   | $ | 17,530 |   |   | $ | 7,168 |   |   | $ | 33,514 |   |   | $ | 2,557 |   |   | $ | 24,785 |   |
| Interest rate lock commitments         |   |                        | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 3,125 |   |   |   | 586 |   |   |   | 8,849 |   |   |   | 37 |   |
| Forward loan sales commitments         |   |                        | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 674 |   |   |   | 3,444 |   |   |   | 17 |   |   |   | 9,525 |   |
| Share price guarantee                  |   |                        | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 3,722 |   |
| Put options                            |   |                        | − |   |   |   | 96 |   |   |   | − |   |   |   | 60 |   |   |   | − |   |   |   | 4,952 |   |   |   | − |   |   |   | 4,945 |   |
| Total return swaps                     |   |                        | − |   |   |   | 42 |   |   |   | 137 |   |   |   | − |   |   |   | 343 |   |   |   | − |   |   |   | − |   |   |   | 320 |   |
| Embedded derivatives:                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain share arrangements                |   |                        | − |   |   |   | 454 |   |   |   | − |   |   |   | 456 |   |   |   | − |   |   |   | 584 |   |   |   | − |   |   |   | 1,875 |   |
| Option to extend debt maturity         |   |                        | − |   |   |   | − |   |   |   | − |   |   |   | 403 |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Total derivative financial instruments |   | $                           | 6,812   |   |   | $ | 20,153 |   |   | $ | 6,291 |   |   | $ | 18,449 |   |   | $ | 11,310 |   |   | $ | 43,080 |   |   | $ | 11,423 |   |   | $ | 45,209 |   |

|                           |   | Notional              |    |
|--------------------------------|--------|-----------------------|---------|
| (in thousands)            |   | December 31,2010 |    |   | December 31,2009 |   |   | December 31,2008 |   |   | December 31,2007 |   |
|                           |   |                  |    |   |   |   |   |   |   |   |   |   |
| Interest rate swaps            |   | $                     | 303,735 |   |   | $ | 341,856 |   |   | $ | 458,945 |   |   | $ | 915,485 |   |
| Interest rate lock commitments |   |                  | − |   |   |   | − |   |   |   | 217,172 |   |   |   | 328,678 |   |
| Forward loan sales commitments |   |                  | − |   |   |   | − |   |   |   | 158,187 |   |   |   | 292,164 |   |
| Share price guarantee          |   |                  | − |   |   |   | − |   |   |   | − |   |   |   | 7,679 |   |
| Put options                    |   |                  | 15,970  |   |   |   | 7,970 |   |   |   | 14,574 |   |   |   | 14,574 |   |
| Total return swaps             |   |                  | 8,004   |   |   |   | 8,058 |   |   |   | 37,319 |   |   |   | 37,855 |   |
| Embedded derivatives:          |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Option to extend debt maturity |   |                  | − |   |   |   | 11,250 |   |   |   | − |   |   |   | − |   |

----

|                           |   | Realized/Unrealized Gains (Losses) Reported Through Continuing OperationsFor the years ended December 31, |    |
|--------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| (in thousands)            |   | 2010                                                                                                                                                             |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                           |   |                                                                                                                                                             |    |   |   |   |   |   |   |   |   |   |
| Interest rate swaps (1)        |   | $                                                                                                                                                                | (7,814  | ) |   | $ | 1,902 |   |   | $ | (31,862 | ) |   | $ | (20,728 | ) |
| Interest rate lock commitments |   |                                                                                                                                                             | − |   |   |   | − |   |   |   | (208 | ) |   |   | 250 |   |
| Put options                    |   |                                                                                                                                                             | (36     | ) |   |   | 1 |   |   |   | (8 | ) |   |   | 2,869 |   |
| Bond purchase agreements       |   |                                                                                                                                                             | − |   |   |   | − |   |   |   | − |   |   |   | (1,433 | ) |
| Total return swaps (1)         |   |                                                                                                                                                             | (479    | ) |   |   | 99 |   |   |   | 2,220 |   |   |   | 950 |   |
| Embedded derivatives:          |   |                                                                                                                                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain share arrangements        |   |                                                                                                                                                             | 2       |   |   |   | 128 |   |   |   | 1,250 |   |   |   | 1,369 |   |
| Option to extend debt maturity |   |                                                                                                                                                             | 403     |   |   |   | 109 |   |   |   | − |   |   |   | − |   |
| Total                          |   | $                                                                                                                                                                | (7,924  | ) |   | $ | 2,239 |   |   | $ | (28,608 | ) |   | $ | (16,723 | ) |

|   | (1) | The cash paid and received on both interest rate swaps and total return swaps is settled on a net basis and recorded through “Net gains (losses) on derivatives.”  Net cash paid was $6.7 million, $8.5 million and $5.9 million for years ended December 31, 2010, 2009 and 2008, respectively.  Net cash received was $2.1 million for the year ended December 31, 2007. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Realized/Unrealized Gains (Losses) ReportedThrough Discontinued OperationsFor the years ended December 31, |    |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| (in thousands)            |   | 2009                                                                                                                                                         |    |   | 2008 |   |   | 2007 |   |
|                           |   |                                                                                                                                                         |    |   |   |   |   |   |   |
| Interest rate lock commitments |   | $                                                                                                                                                            | (7,041  | ) |   | $ | (4,783 | ) |   | $ | 15,629 |   |
| Forward loan sales commitments |   |                                                                                                                                                         | 6,688   |   |   |   | 7,269 |   |   |   | (18,703 | ) |
| Share price guarantee          |   |                                                                                                                                                         | − |   |   |   | (733 | ) |   |   | (8,033 | ) |
| Total                          |   | $                                                                                                                                                            | (353    | ) |   | $ | 1,753 |   |   | $ | (11,107 | ) |

----

----

| (in thousands)                                      |   | December 31,2010 |      |   | Weighted-AverageInterest Rate atPeriod-End |   |    | December 31,2009 |   |   | Weighted-AverageInterest Rate atPeriod-End |   |   | December 31,2008 |    |   | Weighted- AverageInterest Rate atPeriod-End (1) |   |      | December 31,2007 |   |   | Weighted-AverageInterest Rate atPeriod-End (1) |   |
|----------------------------------------------------------|--------|-----------------------|-----------|--------|------------------------------------------------------|--------|---------|-----------------------|--------|--------|------------------------------------------------------|--------|--------|-----------------------|---------|--------|---------------------------------------------------------------------|--------|-----------|-----------------------|--------|--------|---------------------------------------------------------------|--------|
| Debt related to bond investing activities (2):           |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |
| Senior interests and debt owed to securitization trusts: |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |
| Due within one year (3)                                  |   | $                     | 15,985    | (4)    |                                                 |   | 0.4     | %                     |   | $      | 10,940                                               |   |   |                  | 2.4     | %      |                                                                | $      | 68,896    |                  |   |   | 4.1                                                           | %      |   | $ | 12,955 |   |   |   | 3.9 | % |
| Due after one year (3)                                   |   |                  | 732,115   |   |                                                 |   | 0.7     |                  |   |   | 798,895                                              |   |   |                  | 0.8     |   |                                                                |   | 858,956   |                  |   |   | 1.9                                                           |   |   |   | 1,516,859 |   |   |   | 4.2 |   |
| Mandatorily redeemable preferred shares (5):             |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due within one year                                      |   |                  | 5,558     |   |                                                 |   | 7.5     |                  |   |   | 6,839                                                |   |   |                  | 7.1     |   |                                                                |   | 1,635     |                  |   |   | 6.7                                                           |   |   |   | − |   |   |   | − |   |
| Due after one year                                       |   |                  | 127,971   |   |                                                 |   | 8.6     |                  |   |   | 154,027                                              |   |   |                  | 7.5     |   |                                                                |   | 160,615   |                  |   |   | 7.1                                                           |   |   |   | 162,230 |   |   |   | 7.1 |   |
| Notes payable and other debt (6):                        |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due within one year                                      |   |                  | 5,654     |   |                                                 |   | 6.0     |                  |   |   | 57,256                                               |   |   |                  | 13.4    |   |                                                                |   | −   |                  |   |   | −                                                       |   |   |   | − |   |   |   | − |   |
| Due after one year                                       |   |                  | 68,444    |   |                                                 |   | 6.7     |                  |   |   | 68,128                                               |   |   |                  | 6.7     |   |                                                                |   | 32,192    |                  |   |   | 7.5                                                           |   |   |   | − |   |   |   | − |   |
| Line of credit facilities:                               |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due after one year                                       |   |                  | −   |   |                                                 |   | − |                  |   |   | −                                              |   |   |                  | − |   |                                                                |   | 20,835    |                  |   |   | 5.4                                                           |   |   |   | 21,440 |   |   |   | 6.6 |   |
| Total bond related debt                                  |   |                  | 955,727   |   |                                                 |   |    |                  |   |   | 1,096,085                                            |   |   |                  |    |   |                                                                |   | 1,143,129 |                  |   |   |                                                          |   |   |   | 1,713,484 |   |   |   |   |   |
|                                                     |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Non-bond related debt:                                   |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Notes payable and other debt:                            |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due within one year                                      |   |                  | 106,520   |   |                                                 |   | 7.4     |                  |   |   | 156,774                                              |   |   |                  | 5.7     |   |                                                                |   | 173,243   |                  |   |   | 6.3                                                           |   |   |   | 198,999 |   |   |   | 6.6 |   |
| Due after one year                                       |   |                  | 27,267    |   |                                                 |   | 12.1    |                  |   |   | 19,930                                               |   |   |                  | 7.5     |   |                                                                |   | 164,418   |                  |   |   | 5.7                                                           |   |   |   | 124,285 |   |   |   | 6.6 |   |
| Subordinated debentures (7)                              |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due after one year                                       |   |                  | 183,711   |   |                                                 |   | 8.8     |                  |   |   | 175,127                                              |   |   |                  | 8.8     |   |                                                                |   | 175,500   |                  |   |   | 8.6                                                           |   |   |   | 175,500 |   |   |   | 8.6 |   |
| Line of credit facilities:                               |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Due within one year                                      |   |                  | 4,190     |   |                                                 |   | 6.0     |                  |   |   | −                                              |   |   |                  | − |   |                                                                |   | 102,241   |                  |   |   | 6.3                                                           |   |   |   | 244,603 |   |   |   | 6.0 |   |
| Due after one year                                       |   |                  | −   |   |                                                 |   | − |                  |   |   | −                                              |   |   |                  | − |   |                                                                |   | −   |                  |   |   | −                                                       |   |   |   | 34,000 |   |   |   | 7.7 |   |
| Total non-bond related debt                              |   |                  | 321,688   |   |                                                 |   |    |                  |   |   | 351,831                                              |   |   |                  |    |   |                                                                |   | 615,402   |                  |   |   |                                                          |   |   |   | 777,387 |   |   |   |   |   |
|                                                     |   |                  |      |   |                                                 |   |    |                  |   |   |                                                 |   |   |                  |    |   |                                                                |   |      |                  |   |   |                                                          |   |   |   |   |   |   |   |   |   |
| Total debt                                               |   | $                     | 1,277,415 |   |                                                 |   |    |                  |   | $      | 1,447,916                                            |   |   |                  |    |   |                                                                | $      | 1,758,531 |                  |   |   |                                                          |   |   | $ | 2,490,871 |   |   |   |   |   |

|   | (1) | Certain institutions provide the Company with interest credits based on balances held in escrow related to the Company’s loan servicing portfolio for 2007, 2008 and up through the sale of the Agency Lending business in 2009.  These credits are used to offset amounts charged for interest expense on outstanding line of credit balances.  The weighted-average interest rates exclude the effects of any such interest credits. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Debt related to bond investing activities is debt that is either collateralized or securitized by bonds or other debt obligations of TEB and TEI. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The Company also incurs on-going fees related to credit enhancement, liquidity, custodian, trustee and remarketing as well as upfront debt issuance costs, which when added to the weighted average interest rate brings the overall weighted average interest expense (due within one year) to 1.9%, 3.2%, 4.7% and 4.6% at December 31, 2010, 2009, 2008 and 2007, respectively.  These additional fees bring the weighted average interest rate (due after one year) to 2.0%, 2.0%, 3.1% and 4.7% at December 31, 2010, 2009, 2008 and 2007, respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | This amount relates to one trust with a maturity date of May 1, 2011 at December 31, 2010.  As of February 10, 2011, the trust was amended and the maturity date was extended to 2033. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Included in the mandatorily redeemable preferred shares balance are unamortized discounts of $4.4 million, $5.5 million, $5.7 million and $5.8 million at December 31, 2010, 2009, 2008 and 2007, respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Included in the notes payable and other debt are unamortized discounts of $1.8 million at December 31, 2010 and 2009 and unamortized discounts of $1.9 million at December 31, 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Included in the subordinated debentures is an unamortized discount of $13.0 million and $24.4 million at December 31, 2010 and 2009, respectively.  (See table below which shows that the total principal due will ultimately be $196.7 million.)  There was no discount related to this debt prior to its restructuring in 2009. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                    |   | Issue Date      |   | Numberof Shares |   |   | LiquidationAmountPer Share |   |      | AnnualDistributionRate |   |   | AnnualAggregateDistribution andRedemption Rate |   | Next Remarketing/Mandatory TenderDate |   | MandatoryRedemptionDate |
|---------------------------------------------------------|--------|----------------------|--------|----------------------|--------|--------|---------------------------------|--------|-----------|------------------------|--------|--------|----------------------------------------------------------|--------|-------------------------------------------------|--------|-------------------------|
| Series A Mandatorily Redeemable Preferred Shares   |   | May 27, 1999    |   |                 | 37.5   |   |                            | $      | 2,000,000 |                   |   |   | 7.50                                                     | %      |                                            |   | 12.68                   | % | June 30, 2011 |   | June 30, 2049 |
|                                                    |   |                 |   |                 |   |   |                            |   |      |                   |   |   |                                                     |   |                                            |   |                    |   |   |   |   |
| Series B Mandatorily Redeemable Preferred Shares   |   | June 2, 2000    |   |                 | 30     |   |                            |   | 2,000,000 |                   |   |   | 9.56                                                     |   |                                            |   | N/A                     |   | November 1, 2011 |   | June 30, 2050 |
|                                                    |   |                 |   |                 |   |   |                            |   |      |                   |   |   |                                                     |   |                                            |   |                    |   |   |   |   |
| Series B-1 Mandatorily Redeemable Preferred Shares |   | October 9, 2001 |   |                 | 4      |   |                            |   | 2,000,000 |                   |   |   | 9.56                                                     |   |                                            |   | N/A                     |   | November 1, 2011 |   | June 30, 2050 |

|   | · | The Series B and B-1 shares were subject to remarketing on November 1, 2010.  The holders of a majority of the outstanding Series B and B-1 shares, voting separately, elected to waive the November 1, 2010 remarketing requirement, effective November 1, 2010, and to increase the distribution rate on the Series B and B-1 from 7.75% and 6.8%, respectively, to 9.56% for one year.  As a result, the next mandatory remarketing date for the Series B and B-1 Preferred Shares will occur on November 1, 2011. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Effective June 30, 2009, the Series Exhibit for Series A was amended and restated.  The amendment increased the distribution rate from 6.88% to 7.50% effective July 1, 2009 on the outstanding mandatorily redeemable preferred shares and provided for redemptions of shares beginning in October 31, 2009 and continuing through October 31, 2021, for an annual aggregate distribution and redemption rate of 12.68%.  The holders of a majority of the outstanding Series A shares, voting separately, elected to waive the June 30, 2010 remarketing requirement.  As a result, the next mandatory remarketing date for the Series A Preferred Shares will occur on June 30, 2011. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During 2009, $136.7 million of the Trusts preferred securities were exchanged for $169.2 million of new subordinated debentures.  The terms of the debt were modified to provide for reduced interest payments for the first 3 years in exchange for higher principal payout at maturity (as well as interim redemptions).  MFH now has debt obligations directly to the investors as opposed to the Trusts.  The carrying amount of MFH’s debt continues to be $136.7 million at the time of the modification; however, the $32.5 million of additional principal due at maturity will be amortized into interest expense using the effective interest method with a corresponding increase in the debt balance. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During 2009, $30.0 million of Trust preferred securities were exchanged for $30.0 million of subordinated debentures issued directly by MMIC.  All other terms remained substantially the same. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During 2009, $5.7 million of Trust preferred securities were bought back at 12% of the original principal amount, respectively, resulting in a $4.8 million gain on debt extinguishment. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During 2010, the remaining $0.3 million of Trust preferred securities were bought back at 12% of the original principal amount resulting in a $0.2 million gain on debt extinguishment. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (dollars in thousands) |   |               |    |   |                 |   |    |                   |   |                   |    |                     |          |                         |
|----------------------------------|--------|--------------------|---------|--------|----------------------|--------|---------|------------------------|--------|------------------------|---------|--------------------------|---------------|------------------------------|
| Issuer                           |   | DebenturePrincipal |    |   | NetDiscount (1) |   |    | DebentureCarryingValue |   | OptionalRedemptionDate |    | InterimPrincipalPayments |          | DebenturesMaturity Date |   | Coupon Interest Rate |
| MMIC                             |   | $                  | 30,000  |   |                 | $      | − |                   |   | $                      | 30,000  |                     | May 5, 2014   |                         |   | − |   | May 5, 2034 |   | 9.5% to May 2014, then greater of 9.5% or 6.0% plus 10 year Treasury |
| MFH                              |   |               | 58,420  |   |                 |   | (4,405  | )                      |   |                   | 54,015  |                     | May 5, 2014   |                         |   | − |   | May 5, 2034 |   | 0.75% to January 2012, 9.5% to May 2014,  then greater of 9.5% or 6.0% plus 10 year Treasury |
| MFH                              |   |               | 61,000  |   |                 |   | (4,625  | )                      |   |                   | 56,375  |                     | March 30,2010 |                         | $8,900 dueJune 2014 |   | March 30, 2035 |   | 0.75% to May 2012, 8.05% to May 2015, then 3 month LIBOR plus 3.3% |
| MFH                              |   |               | 47,275  |   |                 |   | (3,954  | )                      |   |                   | 43,321  |                     | July 30, 2010 |                         | $6,500 dueJuly 2014 |   | July 30, 2035 |   |  0.75% to May 2012, 7.62% to May 2015, then 3 month LIBOR plus 3.3% |
|                             |   | $                  | 196,695 |   |                 | $      | (12,984 | )                      |   | $                      | 183,711 |                     |          |                         |   |   |   |   |   |   |

| (1) | The discount represents additional principal owed for which no cash proceeds were received less the amount of cumulative discount that has been amortized through December 31, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in thousands) |   |   |      |
|---------------------|--------|--------|-----------|
| 2011 (1)            |   | $      | 137,907   |   |
| 2012                |   |   | 67,524    |   |
| 2013                |   |   | 47,961    |   |
| 2014                |   |   | 32,898    |   |
| 2015                |   |   | 39,821    |   |
| Thereafter          |   |   | 951,304   |   |
| Total               |   | $      | 1,277,415 |   |

| (1) | Of this amount, $93.1 million represents proceeds from the legal transfer of assets that failed to receive sale accounting and are therefore accounted for as a secured borrowing, $61.3 million of which is subject to the above mentioned forbearance agreements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                  |   | December 31, 2010 |    |   | December 31, 2009 |   |    | December 31, 2008 |   |   | December 31, 2007 |   |
|-----------------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|---------|-----------------------------|--------|--------|-----------------------------|--------|
| (in thousands)                                                   |   | CarryingAmount              |    |   | EstimatedFair Value    |   |    | CarryingAmount              |   |   | EstimatedFair Value    |   |   | CarryingAmount |   |   | EstimatedFair Value |   |   | CarryingAmount |   |   | EstimatedFair Value |   |
| Assets:                                                               |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for investment                                             |   | $                           | 53,933  |   |                        | $      | 52,045  |                        |   | $      | 65,958                      |   |   | $ | 65,658 |   |   | $ | 115,036 |   |   | $ | 112,508 |   |   | $ | 163,149 |   |   | $ | 162,657 |   |
| Loans held for sale                                                   |   |                        | 18,989  |   |                        |   | 20,156  |                        |   |   | 64,020                      |   |   |   | 64,020 |   |   |   | 242,306 |   |   |   | 242,643 |   |   |   | 513,991 |   |   |   | 517,549 |   |
| Investment in preferred stock                                         |   |                        | 36,371  |   |                        |   | 37,487  |                        |   |   | 36,857                      |   |   |   | 37,205 |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Assets of consolidated funds and ventures:                            |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale                                                   |   |                        | − |   |                        |   | − |                        |   |   | 4,375                       |   |   |   | 4,375 |   |   |   | 6,182 |   |   |   | 6,182 |   |   |   | 6,663 |   |   |   | 6,663 |   |
|                                                                  |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                          |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Line of credit facilities                                             |   |                        | 4,190   |   |                        |   | 4,190   |                        |   |   | −                     |   |   |   | − |   |   |   | 123,076 |   |   |   | 123,076 |   |   |   | 300,043 |   |   |   | 300,043 |   |
| Senior interests and debt owed to securitization trusts               |   |                        | 748,100 |   |                        |   | 748,665 |                        |   |   | 809,835                     |   |   |   | 810,957 |   |   |   | 927,852 |   |   |   | 928,499 |   |   |   | 1,529,814 |   |   |   | 1,531,517 |   |
| Notes payable and other debt                                          |   |                        | 207,885 |   |                        |   | 162,024 |                        |   |   | 302,088                     |   |   |   | 259,231 |   |   |   | 369,853 |   |   |   | 318,502 |   |   |   | 323,284 |   |   |   | 283,376 |   |
| Subordinated debentures                                               |   |                        | 183,711 |   |                        |   | 27,537  |                        |   |   | 175,127                     |   |   |   | 30,993 |   |   |   | 175,500 |   |   |   | 29,150 |   |   |   | 175,500 |   |   |   | 90,105 |   |
| Mandatorily redeemable preferred shares                               |   |                        | 133,529 |   |                        |   | 123,444 |                        |   |   | 160,866                     |   |   |   | 146,978 |   |   |   | 162,250 |   |   |   | 132,992 |   |   |   | 162,230 |   |   |   | 176,292 |   |
| Liabilities of consolidated funds and ventures:                       |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bridge financing                                                      |   |                        | − |   |                        |   | − |                        |   |   | −                     |   |   |   | − |   |   |   | 233,042 |   |   |   | 233,042 |   |   |   | 498,587 |   |   |   | 498,587 |   |
| Mortgage debt                                                         |   |                        | − |   |                        |   | − |                        |   |   | −                     |   |   |   | − |   |   |   | 104,946 |   |   |   | 86,568 |   |   |   | 147,717 |   |   |   | 135,979 |   |
| Mortgage debt included in Liabilities related to assets held for sale |   |                        | − |   |                        |   | − |                        |   |   | −                     |   |   |   | − |   |   |   | 56,656 |   |   |   | 49,999 |   |   |   | 40,108 |   |   |   | 31,948 |   |
| Notes payable                                                         |   |                        | 3,709   |   |                        |   | 3,709   |                        |   |   | 3,892                       |   |   |   | 3,892 |   |   |   | 96,858 |   |   |   | 99,379 |   |   |   | 132,817 |   |   |   | 134,833 |   |
|                                                                  |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | NotionalAmount              |    |   | EstimatedFair Value         |   |    | NotionalAmount              |   |   | EstimatedFair Value         |   |   | NotionalAmount |   |   | EstimatedFair Value |   |   | NotionalAmount |   |   | EstimatedFair Value |   |
| Off-Balance Sheet Financial Instruments:                              |   |                        |    |   |                        |   |    |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lending Commitments                                                   |   | $                           | 315     |   |                        | $      | 315     |                        |   | $      | 1,094                       |   |   | $ | 1,074 |   |   | $ | 12,231 |   |   | $ | 11,564 |   |   | $ | 117,413 |   |   | $ | 116,813 |   |

----

----

|   | · | Level 1:  Quoted prices in active markets for identical instruments. |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | Level 2:  Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs or significant value drivers are observable in active markets. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3:  Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   |                  | Fair Value Measurement Levels at December 31, 2010 |   |
|--------------------------|--------|-----------------------|---------------------------------------------------------------------------------------|--------|
| (in thousands)      |   | December 31,2010 |                                                                                  |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                  |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |
| Bonds available-for-sale |   | $                     | 1,231,036                                                                             |   |   | $ | − |   |   | $ | − |   |   | $ | 1,231,036 |   |
| Derivative assets        |   |                  | 6,812                                                                                 |   |   |   | − |   |   |   | 6,812 |   |   |   | − |   |
|                     |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:             |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities   |   | $                     | 20,153                                                                                |   |   | $ | − |   |   | $ | 19,603 |   |   | $ | 550 |   |

|                     |   |                  | Fair Value Measurement Levels at December 31, 2009 |   |
|--------------------------|--------|-----------------------|---------------------------------------------------------------------------------------|--------|
| (in thousands)      |   | December 31,2009 |                                                                                  |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                  |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |
| Bonds available-for-sale |   | $                     | 1,348,133                                                                             |   |   | $ | − |   |   | $ | − |   |   | $ | 1,348,133 |   |
| Derivative assets        |   |                  | 6,291                                                                                 |   |   |   | − |   |   |   | 6,291 |   |   |   | − |   |
|                     |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:             |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities   |   | $                     | 18,449                                                                                |   |   | $ | − |   |   | $ | 17,530 |   |   | $ | 919 |   |

|                      |   |                  | Fair Value Measurement Levels at December 31, 2008 |   |
|---------------------------|--------|-----------------------|---------------------------------------------------------------------------------------|--------|
| (in thousands)       |   | December 31,2008 |                                                                                  |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |
| Bonds available-for-sale  |   | $                     | 1,426,439                                                                             |   |   | $ | − |   |   | $ | − |   |   | $ | 1,426,439 |   |
| Mortgage servicing rights |   |                  | 97,973                                                                                |   |   |   | − |   |   |   | − |   |   |   | 97,973 |   |
| Derivative assets         |   |                  | 11,310                                                                                |   |   |   | − |   |   |   | 7,511 |   |   |   | 3,799 |   |
| Interest only strip       |   |                  | 9,544                                                                                 |   |   |   | − |   |   |   | − |   |   |   | 9,544 |   |
|                      |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:              |   |                  |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities    |   | $                     | 43,080                                                                                |   |   | $ | − |   |   | $ | 33,514 |   |   | $ | 9,566 |   |

----

| (in thousands)                                      |   | BondsAvailable-for-Sale |      |   | DerivativeLiabilities |   |
|----------------------------------------------------------|--------|-------------------------|-----------|--------|-----------------------|--------|
| Balance, January 1, 2010                                 |   | $                       | 1,348,133 |   |                  | $      | (919 | ) |
| Total (losses) gains included in discontinued operations |   |                    | −   |   |                  |   | − |   |
| Total (losses) gains included in earnings                |   |                    | (20,561   | )      |                  |   | 369 |   |
| Total gains included in other comprehensive income       |   |                    | 31,784    |   |                  |   | − |   |
| Impact from purchases, sales, issuances, and settlements |   |                    | (128,320  | )      |                  |   | − |   |
| Balance, December 31, 2010                               |   | $                       | 1,231,036 |   |                  | $      | (550 | ) |

| (in thousands)                                                                                                  |   | Net losseson bonds (1) |    |   | Net (losses)gains onderivatives |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|-------------------------------------------|--------|
|                                                                                                                 |   |                                  |    |   |                                      |   |
| Change in realized (losses) gains related to assets and liabilities held at January 1, 2010, but settled during 2010 |   | $                                     | (617    | )      |                                      | $      | 405 |   |
| Change in unrealized (losses) gains related to assets and liabilities still held at December 31, 2010           |   |                                  | (19,944 | )      |                                      |   | (36 | ) |
| Additional realized gains recognized at settlement                                                                   |   |                                  | 3,212   |   |                                      |   | − |   |
| Total losses reported in earnings                                                                                    |   | $                                     | (17,349 | )      |                                      | $      | 369 |   |

|   | (1) | Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on sale of bonds” in the consolidated statements of operations. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in thousands)                                      |   | BondsAvailable-for-Sale |      |   | MortgageServicingRights |   |    | DerivativeAssets |   |   | InterestOnlyStrips |   |   | DerivativeLiabilities |    |
|----------------------------------------------------------|--------|-------------------------|-----------|--------|-------------------------|--------|---------|------------------|--------|--------|--------------------|--------|--------|-----------------------|---------|
| Balance, January 1, 2009                                 |   | $                       | 1,426,439 |   |                    | $      | 97,973  |             |   | $      | 3,799              |   |   | $                     | 9,544   |   |   | $ | (9,566 | ) |
| Total (losses) gains included in discontinued operations |   |                    | −   |   |                    |   | (620    | )                |   |   | 2,108              |   |   |                  | 383     |   |   |   | (2,461 | ) |
| Total (losses) gains included in earnings                |   |                    | (41,474   | )      |                    |   | − |             |   |   | −            |   |   |                  | − |   |   |   | 238 |   |
| Total gains included in other comprehensive income       |   |                    | 14,876    |   |                    |   | − |             |   |   | −            |   |   |                  | − |   |   |   | − |   |
| Impact from purchases, sales, issuances, and settlements |   |                    | (51,708   | )      |                    |   | (97,353 | )                |   |   | (5,907             | )      |   |                  | (9,927  | ) |   |   | 10,870 |   |
| Balance, December 31, 2009                               |   | $                       | 1,348,133 |   |                    | $      | − |             |   | $      | −            |   |   | $                     | − |   |   | $ | (919 | ) |

| (in thousands)                                                                                                  |   | Net losseson bonds (1) |    |   | Net (losses)gains onderivatives |   |    | DiscontinuedOperations |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|-------------------------------------------|--------|---------|------------------------|--------|
|                                                                                                                 |   |                                  |    |   |                                      |   |    |                   |   |
| Change in realized (losses) gains related to assets and liabilities held at January 1, 2009, but settled during 2009 |   | $                                     | (2,018  | )      |                                      | $      | 80      |                   |   | $ | (590 | ) |
| Change in unrealized (losses) gains related to assets and liabilities still held at December 31, 2009           |   |                                  | (39,456 | )      |                                      |   | 158     |                   |   |   | − |   |
| Additional realized losses recognized at settlement                                                                  |   |                                  | (3,249  | )      |                                      |   | − |                   |   |   | − |   |
| Total losses reported in earnings                                                                                    |   | $                                     | (44,723 | )      |                                      | $      | 238     |                   |   | $ | (590 | ) |

|   | (1) | Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on sale of bonds” in the consolidated statements of operations. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                                      |   | BondsAvailable-for-Sale |      |   | MortgageServicingRights |   |    | DerivativeAssets |   |   | InterestOnlyStrips |   |   | DerivativeLiabilities |    |
|----------------------------------------------------------|--------|-------------------------|-----------|--------|-------------------------|--------|---------|------------------|--------|--------|--------------------|--------|--------|-----------------------|---------|
| Balance, January 1, 2008                                 |   | $                       | 2,113,411 |   |                    | $      | 95,110  |             |   | $      | 8,866              |   |   | $                     | 10,479  |   |   | $ | (20,104 | ) |
| Total (losses) gains included in discontinued operations |   |                    | −   |   |                    |   | (15,327 | )                |   |   | 5,663              |   |   |                  | 247     |   |   |   | (3,910 | ) |
| Total (losses) gains included in earnings                |   |                    | (126,936  | )      |                    |   | − |             |   |   | (208               | )      |   |                  | − |   |   |   | 1,284 |   |
| Total losses included in other comprehensive income      |   |                    | (44,356   | )      |                    |   | − |             |   |   | −            |   |   |                  | − |   |   |   | − |   |
| Impact from purchases, sales, issuances, and settlements |   |                    | (515,680  | )      |                    |   | 18,190  |             |   |   | (10,522            | )      |   |                  | (1,182  | ) |   |   | 13,164 |   |
| Balance, December 31, 2008                               |   | $                       | 1,426,439 |   |                    | $      | 97,973  |             |   | $      | 3,799              |   |   | $                     | 9,544   |   |   | $ | (9,566 | ) |

| (in thousands)                                                                                                  |   | Net losseson bonds (1) |     |   | Net (losses)gains onderivatives |   |   | DiscontinuedOperations |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|--------|-------------------------------------------|--------|--------|------------------------|--------|
|                                                                                                                 |   |                                  |     |   |                                      |   |   |                   |   |
| Change in realized (losses) gains related to assets and liabilities held at January 1, 2008, but settled during 2008 |   | $                                     | (20,938  | )      |                                      | $      | 998    |                   |   | $ | (397 | ) |
| Change in unrealized (losses) gains related to assets and liabilities still held at December 31, 2008                |   |                                  | (105,998 | )      |                                      |   | 78     |                   |   |   | (12,930 | ) |
| Additional realized losses recognized at settlement                                                                  |   |                                  | (14,509  | )      |                                      |   | (42    | )                      |   |   | − |   |
| Total (losses) gains reported on the income statement                                                                |   | $                                     | (141,445 | )      |                                      | $      | 1,034  |                   |   | $ | (13,327 | ) |

|   | (1) | Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on sale of bond” in the consolidated statements of operations. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |   |                  | Fair Value Measurement Levels atDecember 31, 2010 |   |         | Total Losses Reported Through: |    |
|----------------------------------------|--------|-----------------------|---------------------------------------------------------------------------------|--------|--------------|-----------------------------------------------|---------|
| (in thousands)                    |   | December 31,2010 |                                                                            |   | Level 1 |                                          |    | Level 2 |   |   | Level 3 |   |   | ContinuingOperations |   |   | DiscontinuedOperations |   |
| Assets:                                |   |                  |                                                                            |   |         |                                          |    |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale                    |   | $                     | 7,352                                                                           |   |         | $                                             | − |   |   | $ | − |   |   | $ | 7,352 |   |   | $ | 19 |   |   | $ | − |   |
| Investments in unconsolidated ventures |   |                  | 6,779                                                                           |   |         |                                          | − |   |   |   | − |   |   |   | 6,779 |   |   |   | (2,652 | ) |   |   | − |   |

|                |   |                  | Fair Value Measurement Levels atDecember 31, 2009 |   |         | Total Losses Reported Through: |    |
|---------------------|--------|-----------------------|---------------------------------------------------------------------------------|--------|--------------|-----------------------------------------------|---------|
| (in thousands) |   | December 31,2009 |                                                                            |   | Level 1 |                                          |    | Level 2 |   |   | Level 3 |   |   | ContinuingOperations |   |   | DiscontinuedOperations |   |
| Assets:             |   |                  |                                                                            |   |         |                                          |    |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale |   | $                     | 43,286                                                                          |   |         | $                                             | − |   |   | $ | − |   |   | $ | 43,286 |   |   | $ | (17,883 | ) |   | $ | − |   |
| Real estate owned   |   |                  | 5,295                                                                           |   |         |                                          | − |   |   |   | − |   |   |   | 5,295 |   |   |   | (3,355 | ) |   |   | − |   |

|                |   |                  | Fair Value Measurement Levels atDecember 31, 2008 |   |         | Total Losses Reported Through: |    |
|---------------------|--------|-----------------------|---------------------------------------------------------------------------------|--------|--------------|-----------------------------------------------|---------|
| (in thousands) |   | December 31,2008 |                                                                            |   | Level 1 |                                          |    | Level 2 |   |   | Level 3 |   |   | ContinuingOperations |   |   | DiscontinuedOperations |   |
| Assets:             |   |                  |                                                                            |   |         |                                          |    |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale |   | $                     | 196,168                                                                         |   |         | $                                             | − |   |   | $ | − |   |   | $ | 196,168 |   |   | $ | (12,819 | ) |   | $ | − |   |

|                                     |   | December 31, 2010 |    |   | December 31, 2009 |   |   | December 31, 2008 |   |   | December 31, 2007 |   |
|------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
| (in thousands)                      |   | MaximumExposure             |    |   | CarryingAmount              |   |   | MaximumExposure             |   |   | CarryingAmount              |   |   | MaximumExposure |   |   | CarryingAmount |   |   | MaximumExposure |   |   | CarryingAmount |   |
| Mortgage banking loss-sharing agreements |   | $                           | 430     |   |                        | $      | 379    |                        |   | $      | 5,057                       |   |   | $ | 1,052 |   |   | $ | 928,349 |   |   | $ | 12,518 |   |   | $ | 778,893 |   |   | $ | 10,287 |   |
| Indemnification contracts                |   |                        | 112,404 |   |                        |   | 2,198  |                        |   |   | 112,404                     |   |   |   | − |   |   |   | 146,364 |   |   |   | 1,016 |   |   |   | 146,152 |   |   |   | 1,117 |   |
| Other financial/payment guarantees       |   |                        | 8,284   |   |                        |   | 4,658  |                        |   |   | 48,284                      |   |   |   | 3,038 |   |   |   | 53,988 |   |   |   | 4,864 |   |   |   | 54,481 |   |   |   | 4,376 |   |
| Total                                    |   | $                           | 121,118 |   |                        | $      | 7,235  |                        |   | $      | 165,745                     |   |   | $ | 4,090 |   |   | $ | 1,128,701 |   |   | $ | 18,398 |   |   | $ | 979,526 |   |   | $ | 15,780 |   |

----

|                                                                |   |     |   | December 31, 2010 |   |
|---------------------------------------------------------------------|--------|----------|--------|-----------------------------|--------|
| (in thousands)                                                 |   | NoteRef. |   | RestrictedCash              |   |   | BondsAvailable-for-Sale |   |   | LoansReceivable |   |   | Investments inUnconsolidatedVentures andOther Assets |   |   | Investmentin PreferredStock |   |   | Total |   |
| Bonds held in securitization trusts and for securitization programs |   | A        |   | $                           | 7,577  |   |   | $ | 1,107,705 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |   | $ | 1,115,282 |   |
| Notes payable, warehouse lending and lines of credit                |   | B        |   |                        | 14,155 |   |   |   | 55,590 |   |   |   | 71,120 |   |   |   | 6,450 |   |   |   | 2,000 |   |   |   | 149,315 |   |
| Other                                                               |   | C        |   |                        | 3,211  |   |   |   | 33,885 |   |   |   | − |   |   |   | 12,527 |   |   |   | − |   |   |   | 49,623 |   |
| Total                                                               |   |     |   | $                           | 24,943 |   |   | $ | 1,197,180 |   |   | $ | 71,120 |   |   | $ | 18,977 |   |   | $ | 2,000 |   |   | $ | 1,314,220 |   |

|                                                                |   |     |   | December 31, 2009 |   |
|---------------------------------------------------------------------|--------|----------|--------|-----------------------------|--------|
| (in thousands)                                                 |   | NoteRef. |   | RestrictedCash              |   |   | BondsAvailable-for-Sale |   |   | LoansReceivable |   |   | Other Assets |   |   | Investmentin PreferredStock |   |   | Total |   |
| Bonds held in securitization trusts and for securitization programs |   | A        |   | $                           | 7,126  |   |   | $ | 1,167,030 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |   | $ | 1,174,156 |   |
| Notes payable, warehouse lending and lines of credit                |   | B        |   |                        | 11,418 |   |   |   | 79,598 |   |   |   | 125,989 |   |   |   | − |   |   |   | 5,000 |   |   |   | 222,005 |   |
| Other                                                               |   | C        |   |                        | 3,218  |   |   |   | 80,461 |   |   |   | − |   |   |   | 12,632 |   |   |   | − |   |   |   | 96,311 |   |
| Total                                                               |   |     |   | $                           | 21,762 |   |   | $ | 1,327,089 |   |   | $ | 125,989 |   |   | $ | 12,632 |   |   | $ | 5,000 |   |   | $ | 1,492,472 |   |

----

|                                                                |   |     |   | December 31, 2008 |    |
|---------------------------------------------------------------------|--------|----------|--------|-----------------------------|---------|
| (in thousands)                                                 |   | NoteRef. |   | RestrictedCash              |    |   | BondsAvailable-for-Sale |   |   | LoansReceivable |   |   | Investments inUnconsolidatedVentures andOther Assets |   |   | Total |   |
| Bonds held in securitization trusts and for securitization programs |   | A        |   | $                           | 21,812  |   |   | $ | 1,352,412 |   |   | $ | − |   |   | $ | − |   |   | $ | 1,374,224 |   |
| Notes payable, warehouse lending and lines of credit                |   | B        |   |                        | − |   |   |   | 20,835 |   |   |   | 345,868 |   |   |   | 98,889 |   |   |   | 465,592 |   |
| Other                                                               |   | C        |   |                        | 16,271  |   |   |   | 31,792 |   |   |   | − |   |   |   | 14,071 |   |   |   | 62,134 |   |
| Total                                                               |   |     |   | $                           | 38,083  |   |   | $ | 1,405,039 |   |   | $ | 345,868 |   |   | $ | 112,960 |   |   | $ | 1,901,950 |   |

|                                                                |   |     |   | December 31, 2007 |    |
|---------------------------------------------------------------------|--------|----------|--------|-----------------------------|---------|
| (in thousands)                                                 |   | NoteRef. |   | RestrictedCash              |    |   | BondsAvailable-for-Sale |   |   | LoansReceivable |   |   | Investments inUnconsolidatedVentures |   |   | Total |   |
| Bonds held in securitization trusts and for securitization programs |   | A        |   | $                           | 28,783  |   |   | $ | 1,940,894 |   |   | $ | − |   |   | $ | − |   |   | $ | 1,969,677 |   |
| Notes payable, warehouse lending and lines of credit                |   | B        |   |                        | − |   |   |   | 22,855 |   |   |   | 580,875 |   |   |   | 358,744 |   |   |   | 962,474 |   |
| Other                                                               |   | C        |   |                        | 14,494  |   |   |   | 13,007 |   |   |   | − |   |   |   | − |   |   |   | 27,501 |   |
| Total                                                               |   |     |   | $                           | 43,277  |   |   | $ | 1,976,756 |   |   | $ | 580,875 |   |   | $ | 358,744 |   |   | $ | 2,959,652 |   |

| A. | This represents assets held by bond securitization trusts as well as assets pledged as collateral for bond securitizations. |
|----|-----------------------------------------------------------------------------------------------------------------------------|

| B. | The Company pledges bonds, loans, investments in preferred stock and investments in affordable housing properties as collateral for notes payable, warehouse lending arrangements and line of credit borrowings. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The Company pledges collateral in connection with other liabilities, guarantees, derivative transactions, first loss positions and leases.  The Company may elect to pledge collateral on behalf of the Company’s customers in order to facilitate credit and other collateral requirements.  In addition, cash may be restricted for funding obligations. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                     |   |   |   |
|-----------------------------------------|--------|--------|--------|
| 2011                                    |   | $      | 3,887  |   |
| 2012                                    |   |   | 3,868  |   |
| 2013                                    |   |   | 3,774  |   |
| 2014                                    |   |   | 2,628  |   |
| 2015                                    |   |   | 1,204  |   |
| Thereafter                              |   |   | 365    |   |
| Total minimum future rental commitments |   | $      | 15,726 |   |

----

|                                           |   | For the years ended December 31, |    |
|------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                            |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                           |   |                                                      |    |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations            |   | $                                                         | (24,407 | ) |   | $ | (87,292 | ) |   | $ | (324,623 | ) |   | $ | (126,326 | ) |
| Net (loss) income from discontinued operations |   |                                                      | (4,302  | ) |   |   | (56,548 | ) |   |   | (49,232 | ) |   |   | 28,134 |   |
| Net loss to common shareholder                 |   | $                                                         | (28,709 | ) |   | $ | (143,840 | ) |   | $ | (373,855 | ) |   | $ | (98,192 | ) |
|                                           |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted-average shares (1)              |   |                                                      | 40,548  |   |   |   | 40,052 |   |   |   | 39,553 |   |   |   | 39,278 |   |
| Common stock equivalents                       |   |                                                      | − |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Diluted weighted-average shares                |   |                                                      | 40,548  |   |   |   | 40,052 |   |   |   | 39,553 |   |   |   | 39,278 |   |

|   | (1) | Includes common shares issued and outstanding, as well as non-employee directors’ and employee deferred shares that have vested, but are not issued and outstanding. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|            |   | Issue Date       |   | Number ofShares |   |   | LiquidationPreferencePer Share |      |   | DistributionRate |   | Next RemarketingDate |          | OptionalRedemption Date |
|-----------------|--------|-----------------------|--------|----------------------|--------|--------|-------------------------------------|-----------|--------|------------------|--------|---------------------------|---------------|------------------------------|
| Series A-2 |   | October 19, 2004 |   | 10                   |   |   | $                                   | 2,000,000 |   |             |   | 4.90                      | %   | September 30, 2014      |   | September 30, 2014 |
| Series A-3      |   | November 4, 2005      |   | 9                    |   |   |                                | 2,000,000 |   |             |   | 4.95                      |          | September 30, 2012           |   | September 30, 2012 |
| Series A-4      |   | November 4, 2005      |   | 8                    |   |   |                                | 2,000,000 |   |             |   | 5.13                      |          | September 30, 2015           |   | September 30, 2015 |
| Series B-2 |   | October 19, 2004 |   | 7                    |   |   |                                | 2,000,000 |   |             |   | 5.20                      |          | September 30, 2014      |   | September 30, 2014 |
| Series B-3      |   | November 4, 2005      |   | 11                   |   |   |                                | 2,000,000 |   |             |   | 5.30                      |          | September 30, 2015           |   | September 30, 2015 |
| Series C   |   | October 19, 2004 |   | 13                   |   |   |                                | 1,000,000 |   |             |   | 9.75                      |          | September 30, 2012      |   | September 30, 2012 |
| Series C-1 |   | October 19, 2004 |   | 13                   |   |   |                                | 1,000,000 |   |             |   | 5.40                      |          | September 30, 2014      |   | September 30, 2014 |
| Series C-2 |   | October 19, 2004 |   | 13                   |   |   |                                | 1,000,000 |   |             |   | 5.80                      |          | September 30, 2019      |   | September 30, 2019 |
| Series C-3      |   | November 4, 2005      |   | 10                   |   |   |                                | 1,000,000 |   |             |   | 5.50                      |          | September 30, 2015           |   | September 30, 2015 |
| Series D        |   | November 4, 2005      |   | 17                   |   |   |                                | 2,000,000 |   |             |   | 5.90                      |          | September 30, 2015           |   | September 30, 2020 |

| (in thousands)                          |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|----------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Noncontrolling interests in:                 |   |                  |    |   |                  |   |    |                  |   |   |                  |   |
| Consolidated LIHTC Funds                     |   | $                     | 479,174 |   |                  | $      | 544,321 |                  |   | $      | 3,946,934             |   |   | $ | 3,478,689 |   |
| Consolidated Lower Tier Property Partnership |   |                  | 3,915   |   |                  |   | 9,941   |                  |   |   | 27,112                |   |   |   | 29,931 |   |
| Other consolidated entities                  |   |                  | 86,467  |   |                  |   | 13,121  |                  |   |   | 16,315                |   |   |   | 15,581 |   |
| Total                                        |   | $                     | 569,556 |   |                  | $      | 567,383 |                  |   | $      | 3,990,361             |   |   | $ | 3,524,201 |   |

----

|                                                        |   | For the years ended December 31, |   |
|-------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
| (in thousands)                                         |   | 2010                                                      |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Employees’ Stock-based Compensation plan (1)          |   | $                                                         | 95     |   |   | $ | 93 |   |   | $ | 234 |   |   | $ | 2,045 |   |
| Non-employee Directors’ Stock-based Compensation plan |   |                                                      | 200    |   |   |   | 381 |   |   |   | 999 |   |   |   | 888 |   |
| Total                                                       |   | $                                                         | 295    |   |   | $ | 474 |   |   | $ | 1,233 |   |   | $ | 2,933 |   |

|   | (1) | There was no stock-based compensation expense included in discontinued operations in 2010.  Discontinued operations included $0.1 million, $0.2 million and $1.9 million stock-based compensation for the years ended December 31, 2009, 2008 and 2007, respectively. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in thousands, except per option data) |   | Number ofOptions |    |   | Weighted-averageExercisePrice perOption |   |   | Weighted-averageRemainingContractual Lifeper Option(in years) |   |   | AggregateIntrinsicValue |   |   | Year EndLiability |    |
|-----------------------------------------------------------------|--------|-----------------------|---------|--------|----------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|------------------------|---------|
| Outstanding at January 1, 2007                                  |   |                  | 626.1   |   |                                         | $      | 25.34  |                                                                         |   |   | 8.2                     |   |   | $                      | 4,293   |   |   | $ | 2,568 |   |
| Granted.                                                        |   |                  | 125.0   |   |                                         |   | 23.94  |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Exercised (1)                                                   |   |                  | (62.3   | )      |                                         |   | 16.88  |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Outstanding at December 31, 2007                                |   |                  | 688.8   |   |                                         |   | 25.85  |                                                                         |   |   | 8.4                     |   |   |                   | − |   |   |   | 111 |   |
| Forfeited/Expired                                               |   |                  | (136.9  | )      |                                         |   | 24.71  |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Outstanding at December 31, 2008                                |   |                  | 551.9   |   |                                         |   | 26.14  |                                                                         |   |   | 7.3                     |   |   |                   | − |   |   |   | 24 |   |
| Forfeited/Expired                                               |   |                  | (194.8  | )      |                                         |   | 25.48  |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Outstanding at December 31, 2009                                |   |                  | 357.1   |   |                                         |   | 26.50  |                                                                         |   |   | 6.3                     |   |   |                   | − |   |   |   | 24 |   |
| Granted                                                         |   |                  | 850.0   |   |                                         |   | 0.25   |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Forfeited/Expired                                               |   |                  | (62.1   | )      |                                         |   | 26.50  |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Outstanding at December 31, 2010                                |   |                  | 1,145.0 |   |                                         |   | 7.01   |                                                                         |   |   | 8.2                     |   |   |                   | − |   |   |   | 116 |   |
|                                                            |   |                  |    |   |                                         |   |   |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| Options Exercisable at:                                         |   |                  |    |   |                                         |   |   |                                                                         |   |   |                    |   |   |                   |    |   |   |   |   |   |
| December 31, 2007                                               |   |                  | 292.1   |   |                                         | $      | 26.07  |                                                                         |   |   | 7.9                     |   |   | $                      | − |   |   |   |   |   |
| December 31, 2008                                               |   |                  | 462.7   |   |                                         |   | 26.07  |                                                                         |   |   | 7.3                     |   |   |                   | − |   |   |   |   |   |
| December 31, 2009                                               |   |                  | 357.1   |   |                                         |   | 26.50  |                                                                         |   |   | 6.3                     |   |   |                   | − |   |   |   |   |   |
| December 31, 2010                                               |   |                  | 578.4   |   |                                         |   | 13.64  |                                                                         |   |   | 7.2                     |   |   |                   | − |   |   |   |   |   |

| (1) | Options settled in cash. |
|-----|--------------------------|

----

| (in thousands)                  |   | Number of Shares |    |
|--------------------------------------|--------|----------------------------|---------|
| Unvested shares at January 1, 2007   |   |                       | 233.3   |   |
| Granted                              |   |                       | 187.1   |   |
| Forfeited                            |   |                       | (15.9   | ) |
| Vested                               |   |                       | (185.3  | ) |
| Unvested shares at December 31, 2007 |   |                       | 219.2   |   |
| Forfeited                            |   |                       | (28.9   | ) |
| Rescinded                            |   |                       | (66.0   | ) |
| Vested                               |   |                       | (25.5   | ) |
| Unvested shares at December 31, 2008 |   |                       | 98.8    |   |
| Forfeited                            |   |                       | (3.8    | ) |
| Rescinded                            |   |                       | (28.6   | ) |
| Vested                               |   |                       | (54.9   | ) |
| Unvested shares at December 31, 2009 |   |                       | 11.5    |   |
| Forfeited                            |   |                       | − |   |
| Rescinded                            |   |                       | − |   |
| Vested                               |   |                       | (9.6    | ) |
| Unvested shares at December 31, 2010 |   |                       | 1.9     |   |
|                                 |   |                       |    |   |
| Shares vested and expected to vest:  |   |                       |    |   |
| December 31, 2007                    |   |                       | 186.5   |   |
| December 31, 2008                    |   |                       | 95.0    |   |
| December 31, 2009                    |   |                       | 11.5    |   |
| December 31, 2010                    |   |                       | 1.9     |   |

----

| (in thousands, except per option data) |   | Number ofOptions |   |   | Weighted-averageExercisePrice perOption |   |   | Weighted-averageRemainingContractual Lifeper Option(in years) |   |   | AggregateIntrinsicValue |   |
|-----------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding at January 1, 2007                                  |   |                  | 125.0  |   |                                         | $      | 23.28  |                                                                         |   |   | 5.2                     |   |   | $ | 1,115 |   |
| Exercised                                                       |   |                  | (2.5   | )      |                                         |   | 16.81  |                                                                         |   |   |                    |   |   |   |   |   |
| Outstanding at December 31, 2007 (1)                            |   |                  | 122.5  |   |                                         |   | 23.41  |                                                                         |   |   | 4.2                     |   |   |   | − |   |
| Expired/Forfeited                                               |   |                  | (6.0   | )      |                                         |   | 21.75  |                                                                         |   |   |                    |   |   |   |   |   |
| Outstanding at December 31, 2008 (1)                            |   |                  | 116.5  |   |                                         |   | 23.50  |                                                                         |   |   | 3.4                     |   |   |   | − |   |
| Expired/Forfeited                                               |   |                  | (7.5   | )      |                                         |   | 19.38  |                                                                         |   |   |                    |   |   |   |   |   |
| Outstanding at December 31, 2009 (1)                            |   |                  | 109.0  |   |                                         |   | 23.78  |                                                                         |   |   | 2.6                     |   |   |   | − |   |
| Expired/Forfeited                                               |   |                  | (50.0  | )      |                                         |   | 23.00  |                                                                         |   |   |                    |   |   |   |   |   |
| Outstanding at December 31, 2010 (1)                            |   |                  | 59.0   |   |                                         |   | 24.44  |                                                                         |   |   | 1.5                     |   |   |   | − |   |
|                                                            |   |                  |   |   |                                         |   |   |                                                                         |   |   |                    |   |   |   |   |   |
| Options Exercisable at:                                         |   |                  |   |   |                                         |   |   |                                                                         |   |   |                    |   |   |   |   |   |
| December 31, 2007                                               |   |                  | 120.2  |   |                                         | $      | 23.35  |                                                                         |   |   | 4.2                     |   |   | $ | − |   |
| December 31, 2008                                               |   |                  | 116.5  |   |                                         |   | 23.50  |                                                                         |   |   | 3.4                     |   |   |   | − |   |
| December 31, 2009                                               |   |                  | 109.0  |   |                                         |   | 23.78  |                                                                         |   |   | 2.6                     |   |   |   | − |   |
| December 31, 2010                                               |   |                  | 59.0   |   |                                         |   | 24.44  |                                                                         |   |   | 1.5                     |   |   |   | − |   |

| (1) | Includes options vested and expected to vest. |
|-----|-----------------------------------------------|

| (in thousands, exceptper share data) |   | RestrictedShare Grants |    |   | Weighted-average GrantDate Share Price |   |    | Deferred ShareGrants |   |   | Weighted-average GrantDate Share Price |   |   | Directors’ FeesDirectors’ FeesExpense |   |
|----------------------------------------------------------|--------|-----------------------------|---------|--------|-------------------------------------------------------|--------|---------|---------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
| 2007                                                     |   |                        | − |   |                                                  | $      | − |                      |   |   | 43,302                                                |   |   | $                                                           | 18.87  |   |   | $ | 888 |   |
| 2008                                                     |   |                        | − |   |                                                  |   | − |                      |   |   | 439,605                                               |   |   |                                                        | 1.37   |   |   |   | 999 |   |
| 2009                                                     |   |                        | 368,110 |   |                                                  |   | 0.39    |                      |   |   | 83,550                                                |   |   |                                                        | 0.34   |   |   |   | 381 |   |
| 2010                                                     |   |                        | − |   |                                                  |   | − |                      |   |   | 478,801                                               |   |   |                                                        | 0.21   |   |   |   | 200 |   |

|                                  |   | For the years ended December 31, |    |
|---------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                   |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Federal income tax benefit (expense): |   |                                                      |    |   |   |   |   |   |   |   |   |   |
| Current                               |   | $                                                         | − |   |   | $ | − |   |   | $ | 1,532 |   |   | $ | (1,579 | ) |
| Deferred                              |   |                                                      | − |   |   |   | 51 |   |   |   | (1,543 | ) |   |   | (26 | ) |
| State income tax benefit (expense):   |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                               |   |                                                      | 772     |   |   |   | (659 | ) |   |   | (124 | ) |   |   | (1,418 | ) |
| Deferred                              |   |                                                      | − |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Income tax benefit (expense)          |   | $                                                         | 772     |   |   | $ | (608 | ) |   | $ | (135 | ) |   | $ | (3,023 | ) |

----

|                                                |   | For the years ended December 31, |    |
|-----------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                                 |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Loss from continuing operations before income taxes |   | $                                                         | (69,168 | ) |   | $ | (145,050 | ) |   | $ | (372,914 | ) |   | $ | (138,363 | ) |
|                                                |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit at federal statutory rate (35%)  |   |                                                      | 24,209  |   |   |   | 50,767 |   |   |   | 130,520 |   |   |   | 48,427 |   |
| Permanent differences:                              |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from entities not subject to tax      |   |                                                      | (17,242 | ) |   |   | (3,651 | ) |   |   | (46,137 | ) |   |   | 19,750 |   |
| State income taxes, net of federal tax effect       |   |                                                      | 1,301   |   |   |   | 5,780 |   |   |   | 9,804 |   |   |   | 4,508 |   |
| Goodwill impairment                                 |   |                                                      | − |   |   |   | − |   |   |   | (8,938 | ) |   |   | (309 | ) |
| Other                                               |   |                                                      | 1,212   |   |   |   | (321 | ) |   |   | 105 |   |   |   | (946 | ) |
| Change in valuation allowance                       |   |                                                      | (8,708  | ) |   |   | (53,183 | ) |   |   | (85,489 | ) |   |   | (74,453 | ) |
| Income tax benefit (expense)                        |   | $                                                         | 772     |   |   | $ | (608 | ) |   | $ | (135 | ) |   | $ | (3,023 | ) |

----

| (in thousands)                                         |   | December 31,2010 |     |   | December 31,2009 |   |     | December 31,2008 |   |   | December 31,2007 |   |
|-------------------------------------------------------------|--------|-----------------------|----------|--------|-----------------------|--------|----------|-----------------------|--------|--------|-----------------------|--------|
| Deferred tax assets:                                        |   |                  |     |   |                  |   |     |                  |   |   |                  |   |
| Syndication fees                                            |   | $                     | 401      |   |                  | $      | 1,176    |                  |   | $      | 10,388                |   |   | $ | 20,405 |   |
| Net operating loss, tax credits and other tax carryforwards |   |                  | 190,245  |   |                  |   | 164,211  |                  |   |   | 81,467                |   |   |   | 37,138 |   |
| Guarantee fees                                              |   |                  | 6,870    |   |                  |   | 6,570    |                  |   |   | 12,135                |   |   |   | 12,261 |   |
| Asset management fees                                       |   |                  | 8,132    |   |                  |   | 7,853    |                  |   |   | 18,580                |   |   |   | 13,352 |   |
| Investments in partnerships                                 |   |                  | 8,559    |   |                  |   | 14,195   |                  |   |   | 40,537                |   |   |   | 7,234 |   |
| Loan loss reserves                                          |   |                  | 11,451   |   |                  |   | 10,409   |                  |   |   | 28,187                |   |   |   | 14,748 |   |
| Lower of cost or market adjustments                         |   |                  | 1,611    |   |                  |   | 8,691    |                  |   |   | 5,171                 |   |   |   | 2,727 |   |
| Derivative financial instruments                            |   |                  | 6,697    |   |                  |   | 7,133    |                  |   |   | 4,935                 |   |   |   | 11,379 |   |
| Other                                                       |   |                  | 5,638    |   |                  |   | 10,068   |                  |   |   | 16,661                |   |   |   | 12,577 |   |
| Total deferred tax assets                                   |   |                  | 239,604  |   |                  |   | 230,306  |                  |   |   | 218,061               |   |   |   | 131,821 |   |
| Less: valuation allowance                                   |   |                  | (225,834 | )      |                  |   | (215,759 | )                     |   |   | (175,650              | )      |   |   | (91,962 | ) |
| Total deferred tax assets, net                              |   | $                     | 13,770   |   |                  | $      | 14,547   |                  |   | $      | 42,411                |   |   | $ | 39,859 |   |
| Deferred tax liabilities:                                   |   |                  |     |   |                  |   |     |                  |   |   |                  |   |   |   |   |   |
| Mortgage servicing rights, net                              |   | $                     | −  |   |                  | $      | −  |                  |   | $      | 38,846                |   |   | $ | 37,711 |   |
| Goodwill and intangible assets                              |   |                  | −  |   |                  |   | −  |                  |   |   | 15,788                |   |   |   | 10,260 |   |
| Investments in preferred stock                              |   |                  | 13,770   |   |                  |   | 14,547   |                  |   |   | −               |   |   |   | − |   |
| Other                                                       |   |                  | −  |   |                  |   | −  |                  |   |   | 1,866                 |   |   |   | 2,665 |   |
| Total deferred tax liabilities                              |   | $                     | 13,770   |   |                  | $      | 14,547   |                  |   | $      | 56,500                |   |   | $ | 50,636 |   |
| Net deferred tax liability                                  |   | $                     | −  |   |                  | $      | −  |                  |   | $      | (14,089               | )      |   | $ | (10,777 | ) |

|                                                  |   | For the years ended December 31, |    |
|-------------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                                   |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Balance-January 1,                                    |   | $                                                         | 215,759 |   |   | $ | 175,650 |   |   | $ | 91,962 |   |   | $ | 39,161 |   |
| Additions (subtractions) from discontinued operations |   |                                                      | 1,367   |   |   |   | (13,074 | ) |   |   | (1,801 | ) |   |   | (21,652 | ) |
| Additions from continuing operations                  |   |                                                      | 8,708   |   |   |   | 53,183 |   |   |   | 85,489 |   |   |   | 74,453 |   |
| Balance-December 31,                                  |   | $                                                         | 225,834 |   |   | $ | 215,759 |   |   | $ | 175,650 |   |   | $ | 91,962 |   |

----

|                                                           |   | For the years ended December 31, |    |
|----------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
| (in thousands)                                            |   | 2010                                                      |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Balance-January 1,                                             |   | $                                                         | 3,344   |   |   | $ | 3,104 |   |   | $ | 6,624 |   |   | $ | 905 |   |
| Gross additions for tax positions of prior years               |   |                                                      | 42      |   |   |   | 32 |   |   |   | 40 |   |   |   | 1,466 |   |
| Gross additions for tax positions of the current year          |   |                                                      | − |   |   |   | 550 |   |   |   | − |   |   |   | − |   |
| Reductions resulting from a lapse of the statue of limitations |   |                                                      | (786    | ) |   |   | − |   |   |   | − |   |   |   | − |   |
| Changes to tax positions that only affect timing               |   |                                                      | (107    | ) |   |   | (342 | ) |   |   | (3,560 | ) |   |   | 4,253 |   |
| Balance-December 31,                                           |   | $                                                         | 2,493   |   |   | $ | 3,344 |   |   | $ | 3,104 |   |   | $ | 6,624 |   |

----

----

|                                                                  |   | For the year ended December 31, 2010 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                  |   | Business Sales                                                |    |   |   |   |
| (in thousands)                                                   |   | RenewableVentures                                                  |    |   | TCE (1) |   |   | Other |   |   | Total |   |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Operations:                                                           |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                                                                  | − |   |   | $ | 2,173 |   |   | $ | 1,773 |   |   | $ | 3,946 |   |
| Expenses                                                              |   |                                                               | 567     |   |   |   | 2,214 |   |   |   | 61 |   |   |   | 2,842 |   |
| Other gains                                                           |   |                                                               | − |   |   |   | − |   |   |   | 360 |   |   |   | 360 |   |
| (Loss) income from operations                                         |   |                                                               | (567    | ) |   |   | (41 | ) |   |   | 2,072 |   |   |   | 1,464 |   |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Disposal:                                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss on discontinued operations                                   |   |                                                               | (5,337  | ) |   |   | (188 | ) |   |   | − |   |   |   | (5,525 | ) |
| Net loss on sale                                                      |   |                                                               | (5,337  | ) |   |   | (188 | ) |   |   | − |   |   |   | (5,525 | ) |
| Net (loss) income from discontinued operations                        |   |                                                               | (5,904  | ) |   |   | (229 | ) |   |   | 2,072 |   |   |   | (4,061 | ) |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (income) loss allocable to noncontrolling interests               |   |                                                               | (7      | ) |   |   | 134 |   |   |   | (368 | ) |   |   | (241 | ) |
| Net (loss) income to common shareholders from discontinued operations |   | $                                                                  | (5,911  | ) |   | $ | (95 | ) |   | $ | 1,704 |   |   | $ | (4,302 | ) |

----

|                                                                  |   | For the year ended December 31, 2009 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                  |   | Business Sales                                                |    |   |   |   |   |   |   |
| (in thousands)                                                   |   | RenewableVentures                                                  |    |   | Agency |   |   | TCE (2) |   |   | Other |   |   | Lower TierPropertyPartnerships (4) |   |   | Total |   |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operations:                                                           |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                                                                  | 299     |   |   | $ | 8,601 |   |   | $ | 28,088 |   |   | $ | 445 |   |   | $ | 9,460 |   |   | $ | 46,893 |   |
| Expenses                                                              |   |                                                               | 13,970  |   |   |   | 5,835 |   |   |   | 35,917 |   |   |   | 64 |   |   |   | 10,202 |   |   |   | 65,988 |   |
| Impairment                                                            |   |                                                               | − |   |   |   | − |   |   |   | 31,532 |   |   |   | 1,472 |   |   |   | 3,278 |   |   |   | 36,282 |   |
| Other gains                                                           |   |                                                               | − |   |   |   | 1,746 |   |   |   | 12,227 |   |   |   | − |   |   |   | − |   |   |   | 13,973 |   |
| Equity in losses from Lower Tier Property Partnerships                |   |                                                               | − |   |   |   | − |   |   |   | (137,570 | ) |   |   | − |   |   |   | − |   |   |   | (137,570 | ) |
| Income tax expense                                                    |   |                                                               | − |   |   |   | − |   |   |   | (850 | ) |   |   | − |   |   |   | − |   |   |   | (850 | ) |
| (Loss) income from operations                                         |   |                                                               | (13,671 | ) |   |   | 4,512 |   |   |   | (165,554 | ) |   |   | (1,091 | ) |   |   | (4,020 | ) |   |   | (179,824 | ) |
| Disposal:                                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) gain on discontinued operations                            |   |                                                               | (16,254 | ) |   |   | (61,036 | ) |   |   | (1,604 | ) |   |   | − |   |   |   | 9,305 |   |   |   | (69,589 | ) |
| Income tax benefit (3)                                                |   |                                                               | − |   |   |   | 4,243 |   |   |   | 10,696 |   |   |   | − |   |   |   | − |   |   |   | 14,939 |   |
| Net (loss) gain on sale                                               |   |                                                               | (16,254 | ) |   |   | (56,793 | ) |   |   | 9,092 |   |   |   | − |   |   |   | 9,305 |   |   |   | (54,650 | ) |
| Net (loss) income from discontinued operations                        |   |                                                               | (29,925 | ) |   |   | (52,281 | ) |   |   | (156,462 | ) |   |   | (1,091 | ) |   |   | 5,285 |   |   |   | (234,474 | ) |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss (income) allocable to noncontrolling interests               |   |                                                               | (121    | ) |   |   | − |   |   |   | 171,830 |   |   |   | 970 |   |   |   | 5,247 |   |   |   | 177,926 |   |
| Net (loss) income to common shareholders from discontinued operations |   | $                                                                  | (30,046 | ) |   | $ | (52,281 | ) |   | $ | 15,368 |   |   | $ | (121 | ) |   | $ | 10,532 |   |   | $ | (56,548 | ) |

|                                                                  |   | For the year ended December 31, 2008 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                  |   | Business Sales                                                |    |   |   |   |   |   |   |
| (in thousands)                                                   |   | RenewableVentures                                                  |    |   | Agency |   |   | TCE (2) |   |   | Other |   |   | Lower TierPropertyPartnerships (4) |   |   | Total |   |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operations:                                                           |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                                                                  | 2,868   |   |   | $ | 13,412 |   |   | $ | 67,174 |   |   | $ | 3,121 |   |   | $ | 29,252 |   |   | $ | 115,827 |   |
| Expenses                                                              |   |                                                               | 19,296  |   |   |   | 14,295 |   |   |   | 78,594 |   |   |   | 5,000 |   |   |   | 30,963 |   |   |   | 148,148 |   |
| Impairment                                                            |   |                                                               | − |   |   |   | 26,384 |   |   |   | 158,328 |   |   |   | 620 |   |   |   | 5,984 |   |   |   | 191,316 |   |
| Other gains                                                           |   |                                                               | − |   |   |   | 20,761 |   |   |   | 33,240 |   |   |   | − |   |   |   | − |   |   |   | 54,001 |   |
| Equity in losses from Lower Tier Property Partnerships                |   |                                                               | − |   |   |   | − |   |   |   | (331,975 | ) |   |   | − |   |   |   | − |   |   |   | (331,975 | ) |
| Income tax expense                                                    |   |                                                               | − |   |   |   | − |   |   |   | (1,754 | ) |   |   | − |   |   |   | − |   |   |   | (1,754 | ) |
| Loss from operations                                                  |   |                                                               | (16,428 | ) |   |   | (6,506 | ) |   |   | (470,237 | ) |   |   | (2,499 | ) |   |   | (7,695 | ) |   |   | (503,365 | ) |
| Disposal:                                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) gain on discontinued operations                            |   |                                                               | − |   |   |   | − |   |   |   | − |   |   |   | (651 | ) |   |   | 3,497 |   |   |   | 2,846 |   |
| Net (loss) gain on sale                                               |   |                                                               | − |   |   |   | − |   |   |   | − |   |   |   | (651 | ) |   |   | 3,497 |   |   |   | 2,846 |   |
| Net loss from discontinued operations                                 |   |                                                               | (16,428 | ) |   |   | (6,506 | ) |   |   | (470,237 | ) |   |   | (3,150 | ) |   |   | (4,198 | ) |   |   | (500,519 | ) |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss (income) allocable to noncontrolling interests               |   |                                                               | 23,410  |   |   |   | − |   |   |   | 428,449 |   |   |   | 280 |   |   |   | (852 | ) |   |   | 451,287 |   |
| Net income (loss) to common shareholders from discontinued operations |   | $                                                                  | 6,982   |   |   | $ | (6,506 | ) |   | $ | (41,788 | ) |   | $ | (2,870 | ) |   | $ | (5,050 | ) |   | $ | (49,232 | ) |

----

|                                                             |   | For the year ended December 31, 2007 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                  |   | Business Sales                                                |    |   |   |   |   |   |   |
| (in thousands)                                                   |   | RenewableVentures                                                  |    |   | Agency |   |   | TCE (2) |   |   | Other |   |   | Lower TierPropertyPartnerships (4) |   |   | Total |   |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operations:                                                           |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                                                                  | 1,223   |   |   | $ | 31,959 |   |   | $ | 86,663 |   |   | $ | 7,605 |   |   | $ | 39,077 |   |   | $ | 166,527 |   |
| Expenses                                                              |   |                                                               | 16,747  |   |   |   | 18,889 |   |   |   | 84,606 |   |   |   | 4,291 |   |   |   | 38,406 |   |   |   | 162,939 |   |
| Impairment                                                            |   |                                                               | − |   |   |   | 5,744 |   |   |   | 111,065 |   |   |   | 11,195 |   |   |   | 8,586 |   |   |   | 136,590 |   |
| Other gains                                                           |   |                                                               | − |   |   |   | 8,680 |   |   |   | 16,509 |   |   |   | − |   |   |   | − |   |   |   | 25,189 |   |
| Equity in losses from Lower Tier Property Partnerships                |   |                                                               | − |   |   |   | − |   |   |   | (333,501 | ) |   |   | − |   |   |   | − |   |   |   | (333,501 | ) |
| Income tax (expense) benefit                                          |   |                                                               | − |   |   |   | − |   |   |   | (1,751 | ) |   |   | 911 |   |   |   | − |   |   |   | (840 | ) |
| (Loss) income from operations                                         |   |                                                               | (15,524 | ) |   |   | 16,006 |   |   |   | (427,751 | ) |   |   | (6,970 | ) |   |   | (7,915 | ) |   |   | (442,154 | ) |
| Disposal:                                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net gain on discontinued operations                                   |   |                                                               | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 9,969 |   |   |   | 9,969 |   |
| Net gain on sale                                                      |   |                                                               | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 9,969 |   |   |   | 9,969 |   |
| Net (loss) income from discontinued operations                        |   |                                                               | (15,524 | ) |   |   | 16,006 |   |   |   | (427,751 | ) |   |   | (6,970 | ) |   |   | 2,054 |   |   |   | (432,185 | ) |
|                                                                  |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss (income) allocable to noncontrolling interests               |   |                                                               | 27,289  |   |   |   | − |   |   |   | 432,778 |   |   |   | (224 | ) |   |   | 476 |   |   |   | 460,319 |   |
| Net income (loss) to common shareholders from discontinued operations |   | $                                                                  | 11,765  |   |   | $ | 16,006 |   |   | $ | 5,027 |   |   | $ | (7,194 | ) |   | $ | 2,530 |   |   | $ | 28,134 |   |

|   | (1) | Substantially all of the Company’s TCE business was sold in July 2009.  As discussed above, the Company deconsolidated four funds on January 1, 2010 due to the adoption of ASU No. 2009-17. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes certain consolidated Lower Tier Property Partnerships that were sold as part of the TCE business sale. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (3) | The Company had a net deferred tax liability related to its Agency Lending business and its TCE business; therefore, upon sale of the businesses, the write-off of the deferred tax liability resulted in a federal tax benefit. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | These dispositions include the dispositions of the Company’s owned real estate and consolidated Lower Tier Property Partnerships that were sold in the normal course of business and exclude those that were sold as part of the TCE business sale. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                        |   | Business Sales / (Sale Date) |    |
|-------------------------------------------------------------|--------|--------------------------------------------------|---------|
| (in thousands)                                         |   | RenewableVentures (1)(April 2010)      |    |   | RenewableVentures (1)(March 2009) |   |   | TCE (2)(January 2010) |   |   | TCE (2)(July 2009) |   |   | Agency(May 2009) |   |
|                                                        |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                     |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and restricted cash                                    |   | $                                                | 35      |   |   | $ | − |   |   | $ | 5,121 |   |   | $ | − |   |   | $ | 12,597 |   |
| Investments in unconsolidated ventures                      |   |                                             | − |   |   |   | − |   |   |   | − |   |   |   | 5 |   |   |   | − |   |
| Mortgage servicing rights                                   |   |                                             | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 98,968 |   |
| Goodwill and other intangibles                              |   |                                             | − |   |   |   | − |   |   |   | − |   |   |   | 69,985 |   |   |   | 10,700 |   |
| Other assets                                                |   |                                             | 14,435  |   |   |   | − |   |   |   | 200 |   |   |   | − |   |   |   | 10,010 |   |
| Assets of consolidated funds and ventures:                  |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments in Lower Tier Property Partnerships             |   |                                             | − |   |   |   | − |   |   |   | 13,489 |   |   |   | 3,801,921 |   |   |   | − |   |
| Other assets                                                |   |                                             | − |   |   |   | 32,138 |   |   |   | 1,136 |   |   |   | 248,040 |   |   |   | − |   |
| Total assets                                                |   | $                                                | 14,470  |   |   | $ | 32,138 |   |   | $ | 19,946 |   |   | $ | 4,119,951 |   |   | $ | 132,275 |   |
| Liabilities:                                                |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Guarantee obligation                                        |   | $                                                | − |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |   | $ | 11,525 |   |
| Other liabilities                                           |   |                                             | 2,479   |   |   |   | 40 |   |   |   | − |   |   |   | 20,207 |   |   |   | 6,563 |   |
| Liabilities of consolidated funds and ventures:             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt                                                        |   |                                             | − |   |   |   | − |   |   |   | − |   |   |   | 274,297 |   |   |   | − |   |
| Other liabilities                                           |   |                                             | − |   |   |   | − |   |   |   | 2,869 |   |   |   | 406,502 |   |   |   | − |   |
| Total liabilities                                           |   | $                                                | 2,479   |   |   | $ | 40 |   |   | $ | 2,869 |   |   | $ | 701,006 |   |   | $ | 18,088 |   |
|                                                        |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity:                                                     |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling interests in consolidated funds and ventures |   | $                                                | 1,657   |   |   | $ | − |   |   | $ | 17,011 |   |   | $ | 3,396,287 |   |   | $ | − |   |

|                                                                              |   | Lower Tier Property Partnerships (3) |    |
|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|
| (in thousands)                                                               |   | 2009                                                     |    |   | 2008 |   |   | 2007 |   |
|                                                                              |   |                                                     |    |   |   |   |   |   |   |
| Assets:                                                                           |   |                                                     |    |   |   |   |   |   |   |
| Other assets                                                                      |   | $                                                        | 11,309  |   |   | $ | 27,856 |   |   | $ | 36,967 |   |
| Assets of consolidated funds and ventures:                                        |   |                                                     |    |   |   |   |   |   |   |   |   |   |
| Other assets                                                                      |   |                                                     | 103,445 |   |   |   | 82,269 |   |   |   | 12,995 |   |
| Total assets                                                                      |   | $                                                        | 114,754 |   |   | $ | 110,125 |   |   | $ | 49,962 |   |
| Liabilities:                                                                      |   |                                                     |    |   |   |   |   |   |   |   |   |   |
| Liabilities of consolidated funds and ventures:                                   |   |                                                     |    |   |   |   |   |   |   |   |   |   |
| Debt                                                                              |   | $                                                        | 15,524  |   |   | $ | − |   |   | $ | 3,820 |   |
| Other liabilities                                                                 |   |                                                     | 73,441  |   |   |   | 33,310 |   |   |   | 21,733 |   |
| Total liabilities                                                                 |   | $                                                        | 88,965  |   |   | $ | 33,310 |   |   | $ | 25,553 |   |
|                                                                              |   |                                                     |    |   |   |   |   |   |   |   |   |   |
| Equity:                                                                           |   |                                                     |    |   |   |   |   |   |   |   |   |   |
| Noncontrolling interests (accumulated deficit) in consolidated funds and ventures |   | $                                                        | (1,495  | ) |   | $ | 1,388 |   |   | $ | 108 |   |

|   | (1) | Substantially all of the Company’s Renewable Ventures business was sold in March 2009.  The Company’s interest in a biomass energy project was sold in April 2010 for $5.5 million in cash and a contingent note payable upon certain regulatory approvals occuring in the future. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Substantially all of the Company’s TCE business was sold in July 2009.  As discussed above, the Company deconsolidated four funds on January 1, 2010 due to the adoption of ASU No. 2009-17.  The July 2009 information includes certain consolidated Lower Tier Property Partnerships that were sold as part of the TCE business sale. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | These dispositions are all of the consolidated Lower Tier Property Partnerships that were sold in the normal course of business and exclude those that were sold as part of the 2009 TCE business sale.  There were no Lower Tier Property Partnership sales in 2010 accounted for as discontinued operations. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                             |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|-------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| LIHTC Funds                                     |   | $                     | 485,998 |   |                  | $      | 571,979 |                  |   | $      | 4,809,604             |   |   | $ | 5,103,905 |   |
| Consolidated Lower Tier Property Partnerships   |   |                  | 20,763  |   |                  |   | 37,893  |                  |   |   | 246,463               |   |   |   | 312,463 |   |
| Other                                           |   |                  | 95,234  |   |                  |   | 18,633  |                  |   |   | 47,481                |   |   |   | 33,697 |   |
| Total assets of consolidated funds and ventures |   | $                     | 601,995 |   |                  | $      | 628,505 |                  |   | $      | 5,103,548             |   |   | $ | 5,450,065 |   |

----

| (in thousands)                                            |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|----------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Investments in unconsolidated Lower Tier Property Partnerships |   | $                     | 436,971 |   |                  | $      | 499,714 |                  |   | $      | 4,501,665             |   |   | $ | 4,800,496 |   |
| Other assets of consolidated funds and ventures:               |   |                  |    |   |                  |   |    |                  |   |   |                  |   |   |   |   |   |
| Cash, cash equivalents and restricted cash                     |   |                  | 36,082  |   |                  |   | 55,774  |                  |   |   | 305,246               |   |   |   | 281,056 |   |
| Real estate, net                                               |   |                  | 20,368  |   |                  |   | 37,044  |                  |   |   | 156,191               |   |   |   | 256,136 |   |
| South African Fund investments                                 |   |                  | 78,222  |   |                  |   | − |                  |   |   | −               |   |   |   | − |   |
| Solar projects                                                 |   |                  | 10,719  |   |                  |   | 11,345  |                  |   |   | 11,892                |   |   |   | 12,587 |   |
| Assets held for sale, primarily real estate                    |   |                  | − |   |                  |   | − |                  |   |   | 68,365                |   |   |   | 44,493 |   |
| Other assets                                                   |   |                  | 19,633  |   |                  |   | 24,628  |                  |   |   | 60,189                |   |   |   | 55,297 |   |
| Total assets of consolidated funds and ventures                |   | $                     | 601,995 |   |                  | $      | 628,505 |                  |   | $      | 5,103,548             |   |   | $ | 5,450,065 |   |

| (in thousands)                                         |   | December 31,2010 |      |   | December 31,2009 |   |      | December 31,2008 |   |   | December 31,2007 |   |
|-------------------------------------------------------------|--------|-----------------------|-----------|--------|-----------------------|--------|-----------|-----------------------|--------|--------|-----------------------|--------|
| LIHTC Funds:                                                |   |                  |      |   |                  |   |      |                  |   |   |                  |   |
| Funds’ investment in Lower Tier Property Partnerships |   | $                     | 436,971   |   |                  | $      | 499,714   |                  |   | $      | 4,501,665             |   |   | $ | 4,800,496 |   |
| Total assets of Lower Tier Property Partnerships (1)        |   | $                     | 1,461,505 |   |                  | $      | 1,572,689 |                  |   | $      | 14,972,972            |   |   | $ | 14,380,158 |   |
| Total liabilities of Lower Tier Property Partnerships (1)   |   |                  | 1,049,244 |   |                  |   | 1,118,338 |                  |   |   | 10,750,391            |   |   |   | 10,470,029 |   |

| (1) | The assets of the Lower Tier Property Partnerships primarily represent real estate and the liabilities are predominantly mortgage debt. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (in thousands)              |   | December 31,2010 |   |   | December 31,2009 |   |   | December 31,2008 |   |   | December 31,2007 |   |
|----------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Building, furniture and fixtures |   | $                     | 26,272 |   |                  | $      | 41,697 |                  |   | $      | 176,804               |   |   | $ | 271,443 |   |
| Accumulated depreciation         |   |                  | (6,927 | )      |                  |   | (7,011 | )                     |   |   | (43,121               | )      |   |   | (47,372 | ) |
| Land                             |   |                  | 1,023  |   |                  |   | 2,358  |                  |   |   | 22,508                |   |   |   | 32,065 |   |
| Total                            |   | $                     | 20,368 |   |                  | $      | 37,044 |                  |   | $      | 156,191               |   |   | $ | 256,136 |   |

----

| (in thousands)                                                            |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|--------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|--------|-----------------------|--------|
| Liabilities of consolidated funds and ventures:                                |   |                  |    |   |                  |   |    |                  |   |   |                  |   |
| Debt                                                                           |   | $                     | 3,709   |   |                  | $      | 3,892   |                  |   | $      | 434,846               |   |   | $ | 779,121 |   |
| Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships |   |                  | 20,970  |   |                  |   | 43,871  |                  |   |   | 536,811               |   |   |   | 945,107 |   |
| Liabilities related to assets held for sale, primarily mortgage debt           |   |                  | − |   |                  |   | − |                  |   |   | 58,334                |   |   |   | 42,024 |   |
| Other liabilities                                                              |   |                  | 3,136   |   |                  |   | 4,684   |                  |   |   | 61,566                |   |   |   | 65,564 |   |
| Total liabilities of consolidated funds and ventures                           |   | $                     | 27,815  |   |                  | $      | 52,447  |                  |   | $      | 1,091,557             |   |   | $ | 1,831,816 |   |

|                |   | December 31, 2010 |   |
|---------------------|--------|-----------------------------|--------|
| (in thousands) |   | CarryingAmount              |   |   | Face Amount |   |   | Weighted-averageInterest Rates |   |      | Maturity Dates |   |
| Solar Funds:        |   |                        |   |   |   |   |   |   |   |   |   |   |
| Notes payable       |   | $                           | 3,709  |   |   | $ | 3,709 |   |   |   | 8.3 | % (1) |   | Various dates through December 2022 |   |
| Total debt          |   | $                           | 3,709  |   |   | $ | 3,709 |   |   |   |   |   |   |   |   |

| (1) | This debt is also entitled to a portion of the Company’s development and other fees as contingent interest.  Since inception, $0.1 million of contingent interest has been paid. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | December 31, 2009 |   |
|---------------------|--------|-----------------------------|--------|
| (in thousands) |   | CarryingAmount              |   |   | Face Amount |   |   | Weighted-averageInterest Rates |   |      | Maturity Dates |   |
| Solar Funds:        |   |                        |   |   |   |   |   |   |   |   |   |   |
| Notes payable       |   | $                           | 3,892  |   |   | $ | 3,892 |   |   |   | 8.3 | % (1) |   | Various dates through December 2022 |   |
| Total debt          |   | $                           | 3,892  |   |   | $ | 3,892 |   |   |   |   |   |   |   |   |

| (1) | This debt is also entitled to a portion of the Company’s development and other fees as contingent interest.  Since inception, no contingent interest has been paid. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                           |   | December 31, 2008 |    |
|------------------------------------------------|--------|-----------------------------|---------|
| (in thousands)                            |   | CarryingAmount              |    |   | Face Amount |   |   | Weighted-averageInterest Rates (1) |   |       | Maturity Dates |   |
| LIHTC Funds:                                   |   |                        |    |   |   |   |   |   |   |   |   |   |
| Bridge financing                               |   | $                           | 233,042 |   |   | $ | 233,042 |   |   | LIBOR + 0.5 | % |   | Various dates through October 2010 |   |
| Notes payable                                  |   |                        | 92,798  |   |   |   | 88,487 |   |   |   | 5.9 | % |   | Various dates through January 2017 |   |
| Total LIHTC Funds                              |   |                        | 325,840 |   |   |   | 321,529 |   |   |   |   |   |   |   |   |
| Consolidated Lower Tier Property Partnerships: |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage debt (2)                              |   |                        | 161,602 |   |   |   | 179,551 |   |   |   | 6.2 | % |   | Various dates through December 2060 |   |
| Solar Funds:                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes payable                                  |   |                        | 4,060   |   |   |   | 4,060 |   |   |   | 8.3 | % (3) |   | Various dates through December 2022 |   |
| Total debt                                     |   | $                           | 491,502 |   |   | $ | 505,140 |   |   |   |   |   |   |   |   |

|   | (1) | Certain institutions provide LIHTC Funds with interest credits based on cash balances held.  These credits are used to offset amounts charged for interest expense on outstanding line of credit balances.  These rates exclude the impact of these rate reduction programs. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The carrying amount includes $56.7 million of mortgage debt reported in “Liabilities related to assets held for sale.” |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | This debt is also entitled to a portion of the Company’s development and other fees as contingent interest.  Since inception, no contingent interest has been paid. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   | December 31, 2007 |    |
|------------------------------------------------|--------|-----------------------------|---------|
| (in thousands)                            |   | CarryingAmount              |    |   | Face Amount |   |   | Weighted-averageInterest Rates (1) |   |      | Maturity Dates |   |
| LIHTC Funds:                                   |   |                        |    |   |   |   |   |   |   |   |   |   |
| Bridge financing                               |   | $                           | 498,587 |   |   | $ | 498,587 |   |   | LIBOR + 0.5 | % |   | Various dates through October 2010 |   |
| Notes payable                                  |   |                        | 132,817 |   |   |   | 123,607 |   |   |   | 6.1 | % |   | Various dates through January 2017 |   |
| Total LIHTC Funds                              |   |                        | 631,404 |   |   |   | 622,194 |   |   |   |   |   |   |   |   |
| Consolidated Lower Tier Property Partnerships: |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage debt (2)                              |   |                        | 187,825 |   |   |   | 202,816 |   |   |   | 6.8 | % |   | Various dates through December 2060 |   |
| Total debt                                     |   | $                           | 819,229 |   |   | $ | 825,010 |   |   |   |   |   |   |   |   |

|   | (1) | Certain institutions provide LIHTC Funds with interest credits based on cash balances held.  These credits are used to offset amounts charged for interest expense on outstanding line of credit balances.  These rates exclude the impact of these rate reduction programs. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The carrying amount includes $40.1 million of mortgage debt reported in “Liabilities related to assets held for sale.” |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                                                                                                     |   | December 31,2010 |    |   | December 31,2009 |   |    | December 31,2008 |   |   | December 31,2007 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|---------|------------------|--------|--------|------------------|--------|
| Revenue:                                                                                                           |   |             |    |   |             |   |    |             |   |   |             |   |
| Solar fund revenue                                                                                                 |   | $                | 1,048   |   |             | $      | 884     |             |   | $      | 912              |   |   | $ | 558 |   |
| Rental and other income from real estate                                                                           |   |             | 1,371   |   |             |   | 2,867   |             |   |   | 2,833            |   |   |   | 1,615 |   |
| Interest and other income                                                                                          |   |             | 509     |   |             |   | 1,271   |             |   |   | 1,776            |   |   |   | 17,781 |   |
| Total revenue                                                                                                      |   |             | 2,928   |   |             |   | 5,022   |             |   |   | 5,521            |   |   |   | 19,954 |   |
|                                                                                                               |   |             |    |   |             |   |    |             |   |   |             |   |   |   |   |   |
| Expenses:                                                                                                          |   |             |    |   |             |   |    |             |   |   |             |   |   |   |   |   |
| Depreciation and amortization                                                                                      |   |             | 4,306   |   |             |   | 4,698   |             |   |   | 4,775            |   |   |   | 4,139 |   |
| Interest expense                                                                                                   |   |             | 674     |   |             |   | 355     |             |   |   | 211              |   |   |   | 195 |   |
| Impairments and valuation adjustments                                                                              |   |             | (1,296  | )      |             |   | 1,665   |             |   |   | 600              |   |   |   | 126 |   |
| Other operating expenses                                                                                           |   |             | 2,305   |   |             |   | 4,383   |             |   |   | 3,915            |   |   |   | 2,736 |   |
| Total expenses                                                                                                     |   |             | 5,989   |   |             |   | 11,101  |             |   |   | 9,501            |   |   |   | 7,196 |   |
|                                                                                                               |   |             |    |   |             |   |    |             |   |   |             |   |   |   |   |   |
| Equity in losses from Lower Tier Property Partnerships                                                             |   |             | (46,658 | )      |             |   | (59,149 | )                |   |   | (51,875          | )      |   |   | (32,362 | ) |
| Net losses allocable to noncontrolling interests from consolidated funds and ventures (from continuing operations) |   |             | 53,854  |   |             |   | 67,738  |             |   |   | 57,634           |   |   |   | 24,484 |   |
| Net income allocable to the common shareholders                                                                    |   | $                | 4,135   |   |             | $      | 2,510   |             |   | $      | 1,779            |   |   | $ | 4,880 |   |

----

|                                                                                          |   | For the year ended December 31, 2010 |    |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
| (in thousands)                                                                           |   | 1Q                                                                 |    |   | 2Q |   |   | 3Q |   |   | 4Q |   |
| REVENUE                                                                                       |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                               |   | $                                                                  | 23,264  |   |   | $ | 23,186 |   |   | $ | 22,740 |   |   | $ | 22,507 |   |
| Fee and other income                                                                          |   |                                                               | 3,630   |   |   |   | 2,592 |   |   |   | 2,297 |   |   |   | 4,533 |   |
| Revenue from consolidated funds and ventures                                                  |   |                                                               | 591     |   |   |   | 850 |   |   |   | 909 |   |   |   | 578 |   |
| Total revenue                                                                                 |   |                                                               | 27,485  |   |   |   | 26,628 |   |   |   | 25,946 |   |   |   | 27,618 |   |
|                                                                                          |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                                      |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                              |   |                                                               | 18,077  |   |   |   | 16,606 |   |   |   | 15,918 |   |   |   | 15,972 |   |
| Operating expenses                                                                            |   |                                                               | 9,746   |   |   |   | 8,547 |   |   |   | 7,843 |   |   |   | 8,150 |   |
| Impairment on bonds                                                                           |   |                                                               | 6,434   |   |   |   | 2,493 |   |   |   | 2,545 |   |   |   | 9,089 |   |
| Other expenses and charges                                                                    |   |                                                               | 5,649   |   |   |   | 2,687 |   |   |   | 2,630 |   |   |   | 3,400 |   |
| Expenses from consolidated funds and ventures (1)                                             |   |                                                               | 5,114   |   |   |   | 1,984 |   |   |   | 2,192 |   |   |   | (3,301 | ) |
| Total expenses                                                                                |   |                                                               | 45,020  |   |   |   | 32,317 |   |   |   | 31,128 |   |   |   | 33,310 |   |
| Net gains on sale of bonds                                                                    |   |                                                               | 366     |   |   |   | 116 |   |   |   | 2,302 |   |   |   | 428 |   |
| Other net gains (losses) on other assets and liabilities                                      |   |                                                               | 8,016   |   |   |   | (6,162 | ) |   |   | (3,392 | ) |   |   | 10,131 |   |
| Equity in earnings (losses) from unconsolidated ventures                                      |   |                                                               | 1       |   |   |   | (205 | ) |   |   | (14 | ) |   |   | 1 |   |
| Equity in losses from Lower Tier Property Partnerships                                        |   |                                                               | (12,291 | ) |   |   | (13,690 | ) |   |   | (11,789 | ) |   |   | (8,888 | ) |
| Loss from continuing operations before income taxes                                           |   |                                                               | (21,443 | ) |   |   | (25,630 | ) |   |   | (18,075 | ) |   |   | (4,020 | ) |
| Income tax benefit (expense)                                                                  |   |                                                               | 16      |   |   |   | (21 | ) |   |   | 793 |   |   |   | (16 | ) |
| Income (loss) from discontinued operations, net of tax                                        |   |                                                               | 29      |   |   |   | (5,252 | ) |   |   | (68 | ) |   |   | 1,230 |   |
| Net loss                                                                                      |   |                                                               | (21,398 | ) |   |   | (30,903 | ) |   |   | (17,350 | ) |   |   | (2,806 | ) |
| (Income) loss allocable to noncontrolling interests:                                          |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company                  |   |                                                               | (2,466  | ) |   |   | (2,466 | ) |   |   | (2,466 | ) |   |   | (2,467 | ) |
| Net losses (income) allocable to noncontrolling interests in consolidated funds and ventures: |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related to continuing operations                                                              |   |                                                               | 13,779  |   |   |   | 16,863 |   |   |   | 16,105 |   |   |   | 7,107 |   |
| Related to discontinued operations                                                            |   |                                                               | 51      |   |   |   | (76 | ) |   |   | (78 | ) |   |   | (138 | ) |
| Net (loss) income to common shareholders                                                      |   | $                                                                  | (10,034 | ) |   | $ | (16,582 | ) |   | $ | (3,789 | ) |   | $ | 1,696 |   |
|                                                                                          |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted income (loss) per common share:                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from continuing operations                                                      |   | $                                                                  | (0.25   | ) |   | $ | (0.28 | ) |   | $ | (0.09 | ) |   | $ | 0.02 |   |
| (Loss) income from discontinued operations                                                    |   |                                                               | − |   |   |   | (0.13 | ) |   |   | (0.01 | ) |   |   | 0.03 |   |

| (1) | In fourth quarter 2010, the Company recorded unrealized gains on mark to market adjustments of $5.9 million related to the investments of the SA Fund. Substantially all of this is allocated to the noncontrolling interest holders of the SA Fund. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                 |   | For the year ended December 31, 2009 |     |
|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|----------|
| (in thousands)                                                                  |   | 1Q                                                                 |     |   | 2Q |   |   | 3Q |   |   | 4Q |   |
| REVENUE                                                                              |   |                                                               |     |   |   |   |   |   |   |   |   |   |
| Interest income                                                                      |   | $                                                                  | 29,471   |   |   | $ | 29,056 |   |   | $ | 26,144 |   |   | $ | 26,297 |   |
| Fee and other income                                                                 |   |                                                               | 3,158    |   |   |   | 5,609 |   |   |   | 5,212 |   |   |   | 4,802 |   |
| Revenue from consolidated funds and ventures                                         |   |                                                               | 1,947    |   |   |   | 1,042 |   |   |   | 1,054 |   |   |   | 979 |   |
| Total revenue                                                                        |   |                                                               | 34,576   |   |   |   | 35,707 |   |   |   | 32,410 |   |   |   | 32,078 |   |
|                                                                                 |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                             |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                     |   |                                                               | 20,510   |   |   |   | 20,573 |   |   |   | 19,464 |   |   |   | 19,019 |   |
| Operating expenses                                                                   |   |                                                               | 18,141   |   |   |   | 14,165 |   |   |   | 11,408 |   |   |   | 9,858 |   |
| Impairment on bonds                                                                  |   |                                                               | 11,761   |   |   |   | 5,756 |   |   |   | 10,918 |   |   |   | 13,039 |   |
| Other expenses and charges                                                           |   |                                                               | 7,436    |   |   |   | 4,977 |   |   |   | 3,670 |   |   |   | 5,490 |   |
| Expenses from consolidated funds and ventures                                        |   |                                                               | 2,129    |   |   |   | 2,125 |   |   |   | 2,249 |   |   |   | 4,598 |   |
| Total expenses                                                                       |   |                                                               | 59,977   |   |   |   | 47,596 |   |   |   | 47,709 |   |   |   | 52,004 |   |
| Net (losses) gains on sale of bonds                                                  |   |                                                               | (3,554   | ) |   |   | 1 |   |   |   | 249 |   |   |   | 55 |   |
| Other net (losses) gains on other assets and liabilities                             |   |                                                               | (10,037  | ) |   |   | 3,463 |   |   |   | (4,155 | ) |   |   | 2,302 |   |
| Equity in earnings (losses) from unconsolidated ventures                             |   |                                                               | 156      |   |   |   | (1,860 | ) |   |   | 1 |   |   |   | (7 | ) |
| Equity in losses from Lower Tier Property Partnerships                               |   |                                                               | (10,630  | ) |   |   | (12,255 | ) |   |   | (14,413 | ) |   |   | (21,851 | ) |
| Loss from continuing operations before income taxes                                  |   |                                                               | (49,466  | ) |   |   | (22,540 | ) |   |   | (33,617 | ) |   |   | (39,427 | ) |
| Income tax expense                                                                   |   |                                                               | (11      | ) |   |   | (11 | ) |   |   | (11 | ) |   |   | (575 | ) |
| (Loss) income from discontinued operations, net of tax                               |   |                                                               | (76,427  | ) |   |   | (166,138 | ) |   |   | 10,839 |   |   |   | (2,748 | ) |
| Net loss                                                                             |   |                                                               | (125,904 | ) |   |   | (188,689 | ) |   |   | (22,789 | ) |   |   | (42,750 | ) |
| (Income) loss allocable to noncontrolling interests:                                 |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income allocable to perpetual preferred shareholders of a subsidiary company         |   |                                                               | (2,302   | ) |   |   | (2,302 | ) |   |   | (2,302 | ) |   |   | (2,466 | ) |
| Net losses allocable to noncontrolling interests in consolidated funds and ventures: |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related to continuing operations                                                     |   |                                                               | 12,274   |   |   |   | 13,906 |   |   |   | 16,188 |   |   |   | 25,370 |   |
| Related to discontinued operations                                                   |   |                                                               | 79,428   |   |   |   | 94,153 |   |   |   | 1,891 |   |   |   | 2,454 |   |
| Net loss to common shareholders                                                      |   | $                                                                  | (36,504  | ) |   | $ | (82,932 | ) |   | $ | (7,012 | ) |   | $ | (17,392 | ) |
|                                                                                 |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share:                                             |   |                                                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                      |   | $                                                                  | (0.99    | ) |   | $ | (0.27 | ) |   | $ | (0.49 | ) |   | $ | (0.43 | ) |
| Income (loss) from discontinued operations                                           |   |                                                               | 0.08     |   |   |   | (1.81 | ) |   |   | 0.32 |   |   |   | (0.01 | ) |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                                                                                                                                             |   | Incorporation by Reference                                                                                                          |
|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
|   2   |   | Agreement of Merger, dated as of August 1, 1996, by and between SCA Tax Exempt Fund Limited Partnership and the Company                                                                                                                                                                                                                                                                                 |   | Incorporated by reference from the Company’s Registration Statement on Form S-4 (No. 33 - 99088)               |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
|   3.1 |   | Amended and Restated Certificate of Formation and Operating Agreement of the Company                                                                                                                                                                                                                                                                                                                    |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2002        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
|   3.2 |   | Third Amended and Restated Bylaws.                                                                                                                                                                                                                                                                                                                                                                      |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 12, 2007                 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
|   4.1 |   | Specimen Common Share Certificate                                                                                                                                                                                                                                                                                                                                                                       |   | Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
|   4.2 |   | Indenture, dated as of May 3, 2004, by and between MMA Financial Holdings, Inc. and Wilmington Trust Company                                                                                                                                                                                                                                                                                            |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2004        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.1       |   | Credit Agreement, dated as of November 12, 2004, as amended, among MuniMae TEI Holdings, LLC, MMA Construction Finance, LLC and MMA Mortgage Investment Corporation, as borrowers, the Company, as guarantor, Bank of America, N.A., as administrative agent, U.S. Bank National Association, RBC Capital Markets and CitiCorp USA, Inc., as co-syndication agents, and the other lenders party thereto |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 17, 2004                  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.2.1     |   | Amended and Restated Credit Agreement effective as of November 16, 2005 between U.S. Bank National Association and MMA Mortgage Investment Corporation (the “US Bank Credit Agreement”).                                                                                                                                                                                                    |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2005        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.2.2     |   | First Amendment, dated as of December 5, 2005, to the US Bank Credit Agreement.                                                                                                                                                                                                                                                                                                                         |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2005        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.2.3     |   | Second Amendment, dated as of December 14, 2005, to the US Bank Credit Agreement.                                                                                                                                                                                                                                                                                                                       |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2005        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.2.4     |   | Third Amendment, dated as of March 15, 2006, to the US Bank Credit Agreement.                                                                                                                                                                                                                                                                                                                           |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2005        |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                |
| 10.2.5     |   | Fourth Amendment, dated as of July 24, 2006, to the US Bank Credit Agreement.                                                                                                                                                                                                                                                                                                                           |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 27, 2006                      |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                                                                                |   | Incorporation by Reference                                                                                                                       |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.3       |   | Municipal Mortgage & Equity, L.L.C. 1998 Share Incentive Plan                                                                                                                                                                                                                                                                     |   | Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005              |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.4       |   | Municipal Mortgage & Equity, L.L.C. 1998 Non—Employee Directors’ Share Incentive Plan                                                                                                                                                                                                                                      |   | Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005              |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.5       |   | Municipal Mortgage & Equity, L.L.C. 2001 Share Incentive Plan                                                                                                                                                                                                                                                                     |   | Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005              |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.6       |   | Municipal Mortgage & Equity, L.L.C. 2001 Non—Employee Directors’ Share Incentive Plan                                                                                                                                                                                                                                      |   | Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005              |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.7       |   | Municipal Mortgage & Equity, LLC 2004 Non—Employee Directors’ Share Plan                                                                                                                                                                                                                                                   |   | Incorporated by reference from the Company’s Quarterly Report on Form 10 — Q for the quarter ended September 30, 2004 |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.8.1     |   | Employment Agreement by and between the Company and Michael L. Falcone dated as of July 1, 2005.                                                                                                                                                                                                                                           |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2004                     |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.8.2     |   | Assignment and Assumption Agreement, dated as of January 1, 2006, by and between the Company, MMA Financial, Inc. and Mr. Falcone.                                                                                                                                                                                                         |   | Incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2005                     |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.9       |   | Employment Agreement by and between the Company and Gary A. Mentesana dated as of June 14, 2006.                                                                                                                                                                                                                                           |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 19, 2006                                   |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.10      |   | Trust Agreement, dated as of November 1, 2006, by and among MuniMae TE Bond Subsidiary, LLC, as Trustor, MuniMae Portfolio Services, LLC, as Servicer, and U.S. Bank National Association, as Trustee.                                                                                                                                     |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 22, 2006                               |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.11      |   | Fifth Amendment, dated as of November 30, 2006, to the Amended and Restated Credit Agreement, as amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association                                                                                                                                                   |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 5, 2006                                |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.12      |   | Fourth Amendment, dated as of December 1, 2006, to the Amended and Restated Credit Agreement, as amended, between MMA Construction Finance, LLC, MMA Mortgage Investment Corporation, the lender party thereto and Bank of America, N.A.                                                                                                   |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 5, 2006                                |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.13      |   | Fourth Amendment and Completely Restated Loan Agreement dated as of February 23, 2007 by and between the registrant, MMA Capital Corporation, MMA Mortgage Investment Corporation, MMA Construction Finance, LLC, MMA Financial Holdings, Inc. and MMA Financial, Inc., on the one hand, and Synovus Bank of Tampa Bay, on the other hand. |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 1, 2007                                   |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.14      |   | Guaranty Agreement by the registrant, MMA Financial Holdings, Inc. and MMA Financial, Inc. dated as of February 23, 2007.                                                                                                                                                                                                                  |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 1, 2007                                   |
|       |   |                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                             |
| 10.15      |   | Renewal and Increase Promissory Note made by MMA Capital Corporation, MMA Mortgage Investment Corporation and MMA Construction Finance, LLC dated as of February 23, 2007.                                                                                                                                                                 |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 1, 2007                                   |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Incorporation by Reference                                                                                         |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.16      |   | Second Amendment, dated as of May 14, 2007, to that certain Credit Agreement dated as of November 12, 2004 by and among MuniMae TEI Holdings, LLC, MMA Construction Finance, LLC and MMA Mortgage Investment Corporation (each subsidiaries of the registrant), as borrowers, Municipal Mortgage & Equity, LLC, as guarantor, Bank of America, N.A., as administrative agent, and the lender party thereto from time to time.                                      |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 18, 2007      |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.17      |   | Waiver and Fourth Amendment to Loan Documents dated as of October 15, 2007 among MuniMae TEI Holdings, LLC, MMA Construction Finance, LLC and MMA Mortgage Investment Corporation (each subsidiaries of the registrant), as borrowers, Municipal Mortgage & Equity, LLC, as guarantor, Bank of America, N.A., as administrative agent, and the lender party thereto from time to time.                                                                             |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 19, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.18      |   | Amendment No. 12 dated as of November 1, 2007 to the Fifth Amended and Restated Revolving Loan and Letter of Credit Agreement dated as of November 4, 2005 (as amended and/or restated from time to time).                                                                                                                                                                                                                                                             |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 6, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.19      |   | Employment Agreement between David Kay and the Registrant dated as of November 7, 2007.                                                                                                                                                                                                                                                                                                                                                                                |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 8, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.20      |   | Deferred Compensation Agreement between David Kay and the Registrant dated as of November 7, 2007.                                                                                                                                                                                                                                                                                                                                                                     |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 8, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.21      |   | Letter Agreement with respect to that certain $200,000,000 Master Repurchase Agreement between and among MMA Realty Capital Repurchase Subsidiary, LLC, Variable Funding Capital Company, LLC, Wachovia Capital Markets, LLC, MMA Realty Capital, LLC and Municipal Mortgage & Equity, LLC dated as of November 13, 2006.                                                                                                                                          |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 19, 2007 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.22      |   | Letter Agreement with respect to that certain Fourth Amended and Completely Restated Loan Agreement dated as of February 23, 2007 by and among Synovus Bank (formerly, United Bank and Trust), MMA Capital Corporation, MuniMae TEI Holdings, LLC, MMA Mortgage Investment Corporation, MMA Construction Finance, LLC, Municipal Mortgage & Equity, LLC, MMA Financial Holdings, Inc. and MMA Financial, Inc. (formerly, MuniMae Investment Services Corporation). |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 19, 2007 |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Incorporation by Reference                                                                                         |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.23      |   | Letter Agreement with respect to that certain Amended and Restated Credit Agreement, dated as of November 16, 2005 and as subsequently amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association.                                                                                                                                                                                                                                        |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 4, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.24      |   | Sixth Amendment dated as of November 30, 2007 to Amended and Restated Credit Agreement between MMA Mortgage Investment Corporation and U.S. Bank National Association.                                                                                                                                                                                                                                                                                                 |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 4, 2007  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.25      |   | Letter Agreement between the registrant and Mr. Michael L. Falcone dated as of February 8, 2008.                                                                                                                                                                                                                                                                                                                                                                       |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 8, 2008  |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.26      |   | Waiver and Fifth Amendment to Loan Documents dated as of February 15, 2008 among MuniMae TEI Holdings, LLC, MMA Constructions Finance, LLC and MMA Mortgage Investment Corporation (each subsidiaries of the registrant), as borrowers, Municipal Mortgage & Equity, LLC, as guarantor, Bank of America, N.A., as administrative agent, and the lenders party thereto from time to time.                                                                           |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 22, 2008 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.27      |   | Amendment No. 14 dates as of February 15, 2008 to the Fifth Amended and Restated Revolving Loan and Letter of Credit Agreement dated as of November 4, 2005 (as amended and/or restated from time to time).                                                                                                                                                                                                                                                            |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 22, 2008 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |
| 10.28      |   | Letter Agreement with respect to that certain Fourth Amended and Completely Restated Loan Agreement dated as of February 23, 2007 by and among Synovus Bank (formerly, United Bank and Trust), MMA Capital Corporation, MuniMae TEI Holdings, LLC, MMA Mortgage Investment Corporation, MMA Construction Finance, LLC, Municipal Mortgage & Equity, LLC, MMA Financial Holdings, Inc. and MMA Financial, Inc. (formerly, MuniMae Investment Services Corporation). |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 7, 2008     |

----

| ExhibitNo.   |   | Description                                                                                                                                                                                                                                                                            |   | Incorporation by Reference                                                                                       |
|--------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
| 10.29        |   | A. Amendment to Swap Documents, dated as of March 6, 2008, hereof relating to that certain ISDA Master Agreement, dated as of December 5, 2003, between Merrill Lynch Capital Services, Inc. and MuniMae TEI Holdings, LLC, and related swap documents.                           |   |  Incorporated by reference from the Company’s 2006 Annual Report on Form 10-K filed on April 29, 2009 |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|    |   | B. Pledge Agreement, dated as of March 6, 2008, relating to the MuniMae TEI Holdings, LLC Swap Documents executed by MuniMae TEI Holdings, LLC in favor of Merrill Lynch Capital Services, Inc.;                                                                                  |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|    |   | C. Amendment to Swap Documents, dated as of March 6, 2008, relating to that certain ISDA Master Agreement, dated as of April 28, 1997, between Merrill Lynch Capital Services, Inc. and MMA, and related swap documents (collectively, the “ MMA Swap Documents ”);   |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|    |   | D. Pledge Agreement, dated as of March 6, 2008, relating to the MMA Swap Documents executed by MuniMae TEI Holdings, LLC in favor of Merrill Lynch Capital Services, Inc.;                                                                                                        |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|         |   | E. Guarantee of MuniMae TEI Holdings, LLC, dated as of March 6, 2008, in favor of Merrill Lynch Capital Services, Inc. relating to the MMA Swap Documents;                                                                                                                        |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|         |   | F. Amendment to Swap Documents, dated as of March 6, 2008, relating to that certain ISDA Master Agreement, dated as of June 14, 2004, between Merrill Lynch Capital Services, Inc. and MFH, and related swap documents (collectively, the “ MFH Swap Documents ”);    |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|         |   | G. Pledge Agreement, dated as of March 6, 2008, relating to the MFH Swap Documents executed by MuniMae TEI Holdings, LLC in favor of Merrill Lynch Capital Services, Inc.;                                                                                                        |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|         |   | H. Guarantee of MuniMae TEI Holdings, LLC, dated as of March 6, 2008, in favor of Merrill Lynch Capital Services, Inc. relating to the MFH Swap Documents;                                                                                                                        |   |                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                   |   |                                                                                                             |
|         |   | I. Amendment to Swap Documents, dated as of March 6, 2008, relating to that certain ISDA Master Agreement, dated as of February 1, 2007, between Merrill Lynch Capital Services, Inc. and MRC, and related swap documents (collectively, the “ MRC Swap Documents ”); |   |                                                                                                             |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                |   | Incorporation by Reference                                                                                       |
|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
|       |   | J. Guarantee of MuniMae TEI Holdings, LLC, dated as of March 6, 2008, in favor of Merrill Lynch Capital Services, Inc. relating to the MRC Swap Documents;                                                                                                            |   |                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
|       |   | K. Pledge Agreement, dated as of March 6, 2008, relating to the MRC Swap Documents executed by MuniMae TEI Holdings, LLC in favor of Merrill Lynch Capital Services, Inc.;                                                                                            |   |                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
|       |   | L. Agreement with Respect to Swap Collateral, dated as of March 6, 2008, between MuniMae TEI Holdings, LLC, Merrill Lynch Capital Services, Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., MMA and U.S. Bank Trust National Association, as collateral agent; |   |                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
|       |   | M. Pledge Agreement relating to the Swap Collateral Agreement executed by MuniMae TEI Holdings, LLC in favor of Merrill Lynch Capital Services, Inc. and Merrill Lynch, Pierce, Fenner & Smith, Inc.;                                                             |   |                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
| 10.30      |   | Letter Agreement with respect to that certain Amended and Restated Credit Agreement, dated as of November 16, 2005 and as subsequently amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association.                                            |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 21, 2008  |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
| 10.31      |   | Sixth Amended and Restated Loan Agreement among MMA Multifamily Equity REIT and Municipal Mortgage & Equity, LLC and certain of its affiliates defined herein as the borrower and the guarantors, dated as of March 21, 2008.                                          |   |  Incorporated by reference from the Company’s 2006 Annual Report on Form 10-K filed on April 29, 2009 |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
| 10.32      |   | First Amendment to Employment Agreement dates August 28, 2007 between MMA Financial, Inc. and the registrant’s Chief Operating Officer, Charles M. Pinckney.                                                                                                         |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 3, 2008   |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
| 10.33      |   | Seventh Amendment dated as of March 27, 2008 to that certain Amended and Restated Credit Agreement, dated as of November 16, 2005 and as subsequently amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association.                             |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 3, 2008   |
|       |   |                                                                                                                                                                                                                                                                       |   |                                                                                                             |
| 10.34      |   | Eighth Amendment dated as of April 30, 2008 to that certain Amended and Restated Credit Agreement, dated as of November 16, 2005 and as subsequently amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association.                              |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 5, 2008     |

----

| ExhibitNo. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Incorporation by Reference                                                                                           |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.35      |   | Ninth Amendment dated as of November 14, 2008 to that certain Amended and Restated Credit Agreement, dated as of November 16, 2005 and as subsequently amended, between MMA Mortgage Investment Corporation and U.S. Bank National Association.                                                                                                                                                                                                                                                |   | Incorporated by reference from the Company’s Current Report on Form 8-K/A filed on November 21, 2008 |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.36      |   | Letter Agreement dated November 24, 2008 with respect to that certain Fourth Amended and Completely Restated Loan Agreement dated as of February 23, 2007 by and among Synovus Bank (formerly, United Bank and Trust), MMA Capital Corporation, MuniMae TEI Holdings, LLC, MMA Mortgage Investment Corporation, MMA Construction Finance, LLC, Municipal Mortgage & Equity, LLC, MMA Financial Holdings, Inc. and MMA Financial, Inc. (formerly, MuniMae Investment Services Corporation). |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 1, 2008    |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.37.1    |   | Acquisition Agreement dated December 18, 2008 between MMA Mortgage Investment Corporation and Oak Grove Commercial Mortgage, LLC.                                                                                                                                                                                                                                                                                                                                                              |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 22, 2008   |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.37.2    |   | Amended and Restated Acquisition Agreement dated February 3, 2009 between MMA Mortgage Investment Corporation and Oak Grove Commercial Mortgage, LLC.                                                                                                                                                                                                                                                                                                                                          |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 4, 2009    |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.38      |   | Purchase Agreement dated February 26, 2009 between MMA Renewable Ventures, LLC, MMA Renewable Ventures Finance, LLC and Fotowatio Renewable Ventures, Inc.                                                                                                                                                                                                                                                                                                                                     |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 3, 2009       |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.39      |   | Amendment to the Employment Agreement by and between the Company and David Kay dated as of June 11, 2009.                                                                                                                                                                                                                                                                                                                                                                                      |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 15, 2009            |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.40      |   | Purchase and Sales Agreement dated June 26, 2009 between  JEN1, L.P. and MMA Equity Corporation and MMA Financial TC Corp.                                                                                                                                                                                                                                                                                                                                                           |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 26 , 2009                |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.41      |   | First Amendment of the Fourth Amended and Completely Restated Loan Agreement by and among Synovus Bank and Municipal Mortgage & Equity and certain of its subsidiaries, dated June 26, 2009                                                                                                                                                                                                                                                                                                |   | Incorporated by reference from the Company’s Current Report on Form 8-K/A filed on July 9, 2009                |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |
| 10.42      |   | Amendment and Restatement of MuniMae TE Bond Subsidiary, LLC Series A & A-1 Preferred Shares dated June 30, 2009                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                 |

----

| ExhibitNo. |   | Description                                                                                                                                                |   | Incorporation by Reference                                                                               |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.43      |   | Exchange Agreement between MMA Financial Holdings, Inc. and Taberna Preferred Funding I, Ltd. and Taberna Preferred Funding III, Ltd., dated June 30, 2009 |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 2, 2009      |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.44      |   | Exchange Agreement between MMA Financial Holdings, Inc. and Taberna Preferred Funding II, Ltd., dated July 30, 2009                                        |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 5, 2009    |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.45      |   | Exchange Agreement between MMA Financial Holdings, Inc. and certain holders of trust preferred securities, dated July 31, 2009                             |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 5, 2009    |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.46      |   | Exchange Agreement between MMA Mortgage Investment Corporation and certain holders of trust preferred securities, dated November 3, 2009                   |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 3, 2009  |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.47      |   | Loan Agreement between MuniMae TEI Holdings, LLC and Compass Bank, dated November 4, 2009                                                                  |   |                                                                                                     |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.48      |   | Employment and Stock Option Agreements by and between the Company and Gary A. Mentesana dated as of January 7, 2010                                        |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 12, 2010  |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.49      |   | Repurchase Agreement between MMA Financial Holdings, Inc. and  certain holders of trust preferred securities, dated February 12, 2010            |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 18, 2010 |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.50      |   | Employment Agreement by and between the Company and Michael L. Falcone dated as of March 29, 2010                                                          |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 1, 2010     |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.51      |   | Option Agreement by and between the Company and Michael L. Falcone dated as of May 10, 2010                                                                |   | Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 12, 2010      |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.52      |   | 2010 Share Incentive Plan dated April 29 2010                                                                                                              |   |                                                                                                     |
|       |   |                                                                                                                                                       |   |                                                                                                     |
| 10.53      |   | 2010 Non-Employee Directors’ Compensation Plan dated  November 29, 2010                                                                    |   |                                                                                                     |

----

| ExhibitNo. |   | Description                                                                                         |   | Incorporation by Reference |
|------------|--------|-----------------------------------------------------------------------------------------------------|--------|----------------------------|
|       |   |                                                                                                |   |                       |
| 21         |   | List of Subsidiaries                                                                                |   |                       |
|       |   |                                                                                                |   |                       |
| 31.1       |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |   |                       |
|       |   |                                                                                                |   |                       |
| 31.2       |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |   |                       |
|       |   |                                                                                                |   |                       |
| 32.1       |   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   |                       |
|       |   |                                                                                                |   |                       |
| 32.2       |   | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   |                       |

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