----

----

| 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                                                       |   | 13-3949418                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 100 Church Street, New York, New York                          |   | 10007                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| (212) 317-5700                                              |
|-------------------------------------------------------------|
| Registrant’s telephone number, including area code    |
|                                                        |
| Securities registered pursuant to Section 12(b) of the Act: |
| None                                                        |

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

----

----

|                                                                                                    |   | Page   |
|---------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                    |   |   |
| PART III                                                                                                |   | 4      |
|                                                                                                    |   |   |
| Item 10.Directors, Executive Officers and Corporate Governance.                                         |   | 4      |
|                                                                                                    |   |   |
| Item 11.Executive Compensation.                                                                         |   | 8      |
|                                                                                                    |   |   |
| Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |   | 10     |
|                                                                                                    |   |   |
| Item 13.Certain Relationships and Related Transactions, and Director Independence                       |   | 14     |
|                                                                                                    |   |   |
| Item 14.Principal Accounting Fees and Services.                                                         |   | 17     |
|                                                                                                    |   |   |
| PART IV                                                                                                 |   | 18     |
|                                                                                                    |   |   |
| Item 15.Exhibits, Financial Statement Schedules.                                                        |   | 18     |
|                                                                                                    |   |   |
| SIGNATURES                                                                                              |   |   |
|                                                                                                    |   |   |
| EXHIBIT 31.1                                                                                            |   |   |
|                                                                                                    |   |   |
| EXHIBIT 32.1                                                                                            |   |   |

----

----

| Item 10.   | Directors, Executive Officers and Corporate Governance. |
|----------------------|---------------------------------------------------------|

| Name                | Age    | Offices Held                                                   | Independence    | Year First Became Officer/Trustee | Term Expires   |
|---------------------|--------|----------------------------------------------------------------|-----------------|-----------------------------------|----------------|
|                |   |                                                           |            |                              |           |
| Jerome Y. Halperin  | 82     | Managing Trustee                                               | Independent     | 2003                              | 2014           |
| Robert L. Loverd    | 70     | Managing Trustee, Chairman                                     | Independent     | 2003                              | 2012           |
| Robert A. Meister   | 70     | Managing Trustee                                               | Independent     | 2003                              | 2013           |
| Thomas W. White     | 74     | Managing Trustee                                               | Independent     | 2000                              | 2014           |
| Robert L. Levy      | 46     | President, Chief Operating Officer and Chief Financial Officer | Non Independent | 2006                              | 2012           |
| Michael J. Curran   | 64     | Senior Managing Director                                       | Not applicable  | 2010                              | Not applicable |
| William T. Hyman    | 54     | Senior Managing Director                                       | Not applicable  | 2001                              | Not applicable |
| Michael Riechman    | 40     | Senior Managing Director                                       | Not applicable  | 2011                              | Not applicable |
| Philip A. Melton    | 44     | Senior Managing Director                                       | Not applicable  | 2011                              | Not applicable |
| Katherine B. Schnur | 49     | Senior Managing Director                                       | Not applicable  | 2001                              | Not applicable |

----

----

| ·   | Island will provide strategic and general advisory services to us; and |
|--------------------|------------------------------------------------------------------------|

| ·   | we paid $5.0 million of advisory fees over a 12 month period from the date of the agreement for certain fund management review services and have paid and will pay a $5.0 million annual base advisory fee and an annual incentive fee if certain EBITDA thresholds are met (as defined in the agreement). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                | Age    | Office                                                                                  |
|---------------------|--------|-----------------------------------------------------------------------------------------|
|                |   |                                                                                    |
| Robert L. Levy      | 46     |     President, Chief Financial Officer, and Chief Operating Officer |
|                |   |                                                                                    |
| Michael J. Curran   | 64     |     Senior Managing Director, Head of Asset Management Group        |
|                |   |                                                                                    |
| William T. Hyman    | 54     |     Senior Managing Director, Head of Mortgage Banking Group        |
|                |   |                                                                                    |
| Philip A. Melton    | 40     |     Senior Managing Director, Head of Affordable Housing Debt       |
|                |   |                                                                                    |
| Michael Riechman    | 44     |     Senior Managing Director, Head of Affordable Housing Equity     |
|                |   |                                                                                    |
| Katherine B. Schnur | 49     |     Senior Managing Director, Head of Operations                    |

----

| Item 11.   | Executive Compensation. |
|----------------------|-------------------------|

| (a)                                                            |   | (b)    |   | (c)        |    | (d)          |   | (e)              |   | (f)               |   | (g)                                     |   | (h)                                                                          |   | (i)                           |   | (j)       |   |
|----------------------------------------------------------------|--------|--------|--------|------------|---------|--------------|--------|------------------|--------|-------------------|--------|-----------------------------------------|--------|------------------------------------------------------------------------------|--------|-------------------------------|--------|-----------|--------|
| Name and Principal Position                                    |   | Year   |   | Salary ($) |    | Bonus ($)(1) |   | Stock Awards ($) |   | Option Awards ($) |   | Non-EquityIncentivePlanCompensation ($) |   |  Change inPension Valueand NonqualifiedDeferredCompensationEarnings ($) |   | All Other Compensation ($)(2) |   | Total ($) |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
| Robert L. Levy                                                 |   | 2011   |   | $          | 400,000 |         | $      | 1,000,000        |   | $                 | --     |                                    | $      | --                                                                           |   | $                             | --     |      | $      | -- |   | $ | 27,085 |   | $ | 1,427,085 |   |
| President, Chief Operating Officer and Chief Financial Officer |   | 2010   |   | $          | 400,000 |         | $      | 800,000          |   | $                 | --     |                                    | $      | --                                                                           |   | $                             | --     |      | $      | -- |   | $ | 127,139 |   | $ | 1,327,139 |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
| Michael Riechman                                               |   | 2011   |   | $          | 91,154  |         | $      | 1,000,000        |   | $                 | --     |                                    | $      | --                                                                           |   | $                             | --     |      | $      | -- |   | $ | 3,339 |   | $ | 1,094,492 |   |
| Senior Managing Director                                       |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |
| William T. Hyman                                               |   | 2011   |   | $          | 300,000 |         | $      | 350,000          |   | $                 | --     |                                    | $      | --                                                                           |   | $                             | --     |      | $      | -- |   | $ | 8,575 |   | $ | 658,575 |   |
| Senior Managing Director                                       |   |   |   |       |    |         |   |             |   |              |   |                                    |   |                                                                         |   |                          |   |      |   |   |   |   |   |   |   |   |   |

| (1) | Mr. Levy’s 2011 bonus will be paid in the following installments: $500,000 on March 16, 2012, $250,000 on June 8, 2012, and $250,000 on September 14, 2012.  Mr. Riechman’s 2011 bonus was paid in the following installments: $300,000 on September 16, 2011 and $700,000 on March 2, 2012.  Mr. Hyman’s 2011 bonus will be paid in the following installments: $175,000 on March 16, 2012, $87,500 on June 8, 2012, and $87,500 on September 14, 2012. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The amount shown in column (i) reflects for each named executive officer: |
|-----|---------------------------------------------------------------------------|

----

| Name             |   | Year   |   |  Employment Agreement Termination Consideration |    | 401(k) Matching Contributions |   | Long-term Disability and Other Insurance Benefits |   | Automobile or Transportation Allowances |   | Total  |   |
|------------------|--------|--------|--------|------------------------------------------------------|---------|-------------------------------|--------|---------------------------------------------------|--------|-----------------------------------------|--------|--------|--------|
|             |   |   |   |                                                 |    |                          |   |                                              |   |                                    |   |   |   |   |   |   |   |   |
| Robert L. Levy   |   | 2011   |   | $                                                    | --      |                          | $      | 8,575                                             |   | $                                       | 510    |   | $      | 18,000 |   | $ | 27,085 |   |
|             |   | 2010   |   | $                                                    | 100,000 |                          | $      | 8,575                                             |   | $                                       | 564    |   | $      | 18,000 |   | $ | 127,139 |   |
|             |   |   |   |                                                 |    |                          |   |                                              |   |                                    |   |   |   |   |   |   |   |   |
| Michael Riechman |   | 2011   |   | $                                                    | --      |                          | $      | 3,339                                             |   | $                                       | --     |   | $      | -- |   | $ | 3,339 |   |
|             |   |   |   |                                                 |    |                          |   |                                              |   |                                    |   |   |   |   |   |   |   |   |
| William T. Hyman |   | 2011   |   | $                                                    | --      |                          | $      | 8,575                                             |   | $                                       | --     |   | $      | -- |   | $ | 8,575 |   |

| (a)              |   | (b)                                                            |   | (c)                                                               |   | (d)                                                                                    |   | (e)                     |   | (f)                  |   | (g)                                                 |   | (h)                                                       |   | (i)                                                                                        |   | (j)                                                                                                             |   |
|------------------|--------|----------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|-------------------------|--------|----------------------|--------|-----------------------------------------------------|--------|-----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
| Name             |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#) Unexercisable |   | EquityIncentive PlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions (#) |   | OptionExercise Price($) |   | OptionExpirationDate |   | Number ofShares orUnits of StockThat HaveNot Vested |   | Market Valueof Shares orUnits of StockThat HaveNot Vested |   | EquityIncentive PlanAwards:Number ofUnearnedShares, Unitsor OtherRights ThatHave NotVested |   |  EquityIncentive PlanAwards:Market orPayout Valueof UnearnedShares, Unitsor OtherRights ThatHave NotVested |   |
|             |   |                                                           |   |                                                              |   |                                                                                   |   |                    |   |                 |   |                                                |   |                                                      |   |                                                                                       |   |                                                                                                            |   |   |   |
| Robert L. Levy   |   | --                                                             |   | --                                                                |   | --                                                                                     |   |                    | --     |                 | --     |                                                | --     |                                                      |   | --                                                                                         |   | --                                                                                                              |   | -- |   |
|             |   |                                                           |   |                                                              |   |                                                                                   |   |                    |   |                 |   |                                                |   |                                                      |   |                                                                                       |   |                                                                                                            |   |   |   |
| Michael Riechman |   | --                                                             |   | --                                                                |   | --                                                                                     |   |                    | --     |                 | --     |                                                | --     |                                                      |   | --                                                                                         |   | --                                                                                                              |   | -- |   |
|             |   |                                                           |   |                                                              |   |                                                                                   |   |                    |   |                 |   |                                                |   |                                                      |   |                                                                                       |   |                                                                                                            |   |   |   |
| William T. Hyman |   | --                                                             |   | --                                                                |   | --                                                                                     |   |                    | --     |                 | --     |                                                | --     |                                                      |   | --                                                                                         |   | --                                                                                                              |   | -- |   |

----

| Committee                 |   | Chair  |   | Member |   |
|---------------------------|--------|--------|--------|--------|--------|
|                      |   |   |   |   |   |   |   |
| Audit                     |   | $      | 25,000 |   | $      | 15,000 |   |
| Compensation              |   | $      | 20,000 |   | $      | 12,000 |   |
| Nominating and Governance |   | $      | 15,000 |   | $      | 10,000 |   |
| Finance                   |   | $      | 10,000 |   | $      | 7,000 |   |
| Oversight                 |   | $      | 35,000 |   | $      | 35,000 |   |

| (a)                |   | (b)                           |    | (c)              |   | (d)              |   | (e)                                     |   | (f)                                                              |   | (g)                      |   | (h)       |   |
|--------------------|--------|-------------------------------|---------|------------------|--------|------------------|--------|-----------------------------------------|--------|------------------------------------------------------------------|--------|--------------------------|--------|-----------|--------|
| Name(1)            |   | Fees Earned orPaid in Cash($) |    | Shares Awards($) |   | Option Awards($) |   | Non-EquityIncentive PlanCompensation($) |   |  Change inPension Valueand DeferredCompensationEarnings ($) |   | All OtherCompensation($) |   | Total ($) |   |
|               |   |                          |    |             |   |             |   |                                    |   |                                                             |   |                     |   |      |   |   |   |   |   |   |   |   |
| Jerome Y. Halperin |   | $                             | 147,000 |             | $      | --               |   | $                                       | --     |                                                             | $      | --                       |   | $         | --     |   | $ | -- |   | $ | 147,000 |   |
| Robert L. Loverd   |   | $                             | 207,000 |             | $      | --               |   | $                                       | --     |                                                             | $      | --                       |   | $         | --     |   | $ | -- |   | $ | 207,000 |   |
| Robert A. Meister  |   | $                             | 142,000 |             | $      | --               |   | $                                       | --     |                                                             | $      | --                       |   | $         | --     |   | $ | -- |   | $ | 142,000 |   |
| Thomas W. White    |   | $                             | 150,000 |             | $      | --               |   | $                                       | --     |                                                             | $      | --                       |   | $         | --     |   | $ | -- |   | $ | 150,000 |   |

| (1) | Mr. Levy is not included in this table as he is a non-independent trustee and thus received no compensation for his services as trustee.  The compensation of Mr. Levy as employee of the Company is shown in the Summary Compensation Table above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 12.   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------------------|-------------------------------------------------------------------------------------------------|

|                                                       | (a)                                                                                         |   | (b)                                                                         |   | (c)                                                                                                                                          |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       | Number of securities to be issued upon exercise of outstanding options, warrants and rights |   | Weighted-average exercise price of outstanding options, warrants and rights |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a)(1) |
|                                                       |                                                                                        |   |                                                                        |   |                                                                                                                                         |   |
| Equity compensation plans approved by security holders     | --                                                                                          |   | $                                                                           | --     |                                                                                                                                         | 30,154,649 |
| Equity compensation plans not approved by security holders | --                                                                                          |   |                                                                        | --     |                                                                                                                                         | -- |
| Totals                                                     | --                                                                                          |   | $                                                                           | --     |                                                                                                                                         | 30,154,649 |
|                                                       |                                                                                        |   |                                                                        |   |                                                                                                                                         |   |

| (1) | Our Incentive Share Plan (see Note 25 to the consolidated financial statements) authorizes us to issue options or other share-based compensation equal to 10% of the total shares outstanding (as defined in the plan) as of December 31 of the year preceding the issuance of new grants or options. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name and Address(14)                                                     |   |  Amount andNature ofBeneficialOwnership ofCommon Shares |   |  Percent ofCommon SharesBeneficiallyOwned(1) |   | Amount andNature ofBeneficialOwnership ofSpecial PreferredVoting Shares |   |     Number ofVoting Shares(2) |   |     Voting OwnershipPercentage(2) |   |
|--------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|---------------------------------------------------|--------|-------------------------------------------------------------------------|--------|---------------------------------------------------|--------|-------------------------------------------------------|--------|
|  C3 Initial Assets LLC717 Fifth AvenueNew York, NY  10022 |   | 139,663,545                                                  | (3)    | 40.0                                              | %      | --                                                                      |   | 139,663,545                                       |   | 38.7                                                  | %      |
| Andrew L. Farkas717 Fifth AvenueNew York, NY  10022            |   | 139,671,499                                                  | (4)    | 40.0                                              | %      | --                                                                      |   | 139,671,499                                       |   | 38.7                                                  | %      |
| Related Special Assets LLC60 Columbus CircleNew York, NY 10023           |   | 33,654,639                                                   | (5)    | 8.8                                               | %      | --                                                                      |   | 33,654,369                                        |   | 8.5                                                   | %      |
| Stephen M. Ross60 Columbus CircleNew York, NY 10023                      |   | 34,532,969                                                   | (6)    | 9.0                                               | %      | 10,194,400                                                              | (7)    | 44,727,369                                        |   | 11.3                                                  | %      |
| Jeff T. Blau60 Columbus CircleNew York, NY 10023                         |   | 33,915,324                                                   | (8)    | 8.9                                               | %      | 10,234,400                                                              | (9)    | 44,149,724                                        |   | 11.2                                                  | %      |
| Bruce A. Beal60 Columbus CircleNew York, NY 10023                        |   | 33,663,824                                                   | (10)   | 8.8                                               | %      | 10,194,400                                                              | (7)    | 43,858,224                                        |   | 11.1                                                  | %      |
| Bank of America Corporation100 N. Tryon StreetCharlotte, NC 28255        |   | 30,896,490                                                   | (11)   | 8.8                                               | %      | --                                                                      |   | 30,896,490                                        |   | 8.6                                                   | %      |
| Wells Fargo & Company420 Montgomery StreetSan Francisco, CA 94163    |   | 27,813,625                                                   | (12)   | 8.0                                               | %      | --                                                                      |   | 27,813,625                                        |   | 7.7                                                   | %      |
| Natixis Financial Products LLC9 West 57th StreetNew York, NY 10019       |   | 17,784,150                                                   | (13)   | 5.1                                               | %      | --                                                                      |   | 17,784,150                                        |   | 4.9                                                   | %      |

| * | Less than 1% of the outstanding Common Shares. |
|---|------------------------------------------------|

| (1) | Calculated in accordance with Rule 13d-3. |
|-----|-------------------------------------------|

| (2) | Based on (i) Total Common Shares and (ii) Special Preferred Voting Shares. |
|-----|----------------------------------------------------------------------------|

| (3) | C3 Initial Assets LLC shares voting and dispositive power with respect to such shares with C-III Capital Partners LLC, Island C-III Manager LLC, Anubis Advisors LLC, Island Capital Group LLC and Andrew L. Farkas. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes direct beneficial ownership of 7,954 Common Shares and shared voting and dispositive power with respect to 139,663,545 Common Shares with C3 Initial Assets LLC, C-III Capital Partners LLC, Island C-III Manager LLC, Anubis Advisors LLC, and Island Capital Group LLC. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Related Special Assets LLC owns an option to purchase 33,654,639 Common Shares (the “Option”).  Mr. Ross shares voting and dispositive power with respect to such shares with Mr. Blau and Bruce A. Beal, as the terms of Related Special Assets’ operating agreement require that its investment and voting decisions must be unanimously approved by a committee of three persons, currently consisting of Mr. Ross, Mr. Blau and Mr. Beal. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes direct beneficial ownership of 877,645 Common Shares, indirect beneficial ownership of 33,654,639 Common Shares that could be acquired upon the exercise of the Option, and indirect beneficial ownership of 685 Common Shares owned by Related General II, L.P. (Related General II, L.P. is owned by TRCLP.  Mr. Ross owns approximately 62% of TRCLP, Mr. Blau owns approximately 18% of TRCLP, and Mr. Beal owns approximately 10% of TRCLP). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes indirect voting and dispositive power with respect to 10,194,400 Special Preferred Voting Shares held directly by Related General II, L.P. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes direct beneficial ownership of 260,000 Common Shares, indirect beneficial ownership of 33,654,639 Common Shares that could be acquired upon the exercise of the Option, and indirect beneficial ownership of 685 Common Shares owned by Related General II, L.P. (Related General II, L.P. is owned by TRCLP.  Mr. Ross owns approximately 62% of TRCLP, Mr. Blau owns approximately 18% of TRCLP, and Mr. Beal owns approximately 10% of TRCLP). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes direct voting and dispositive power with respect to 40,000 Special Preferred Voting Shares held directly by Mr. Blau and indirect voting and dispositive power with respect to 10,194,400 Special Preferred Voting Shares held directly by Related General II, L.P. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes direct beneficial  ownership of 8,500 Common Shares, indirect beneficial ownership of 33,654,639 Common Shares that could be acquired upon the exercise of the Option, and indirect beneficial ownership of 685 Common Shares owned by Related General II, L.P. (Related General II, L.P. is owned by TRCLP.  Mr. Ross owns approximately 62% of TRCLP, Mr. Blau owns approximately 18% of TRCLP, and Mr. Beal owns approximately 10% of TRCLP). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes indirect beneficial ownership of 24,523,020 Common Shares held by Bank of America, N.A., 3,283,755 Common Shares held by FIA Card Services, N.A., and 3,089,715 Common Shares held by Merrill Lynch Community Development Company, LLC. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Includes indirect beneficial ownership of 24,717,720 Common Shares held by Wells Fargo Community Development Corporation, and in aggregate 3,095,905 Common Shares held by Wells Fargo Bank, N.A. and Wells Fargo Advisors, LLC. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Shares voting and dispositive power with respect to such shares with Natixis North America LLC. |
|------|-------------------------------------------------------------------------------------------------|

----

| (14) | The Federal Deposit Insurance Corporation, in its capacity as Receiver, is the record owner of 24,285,165 Common Shares on behalf of the following entities: 9,269,145 Common Shares held by California National Bank, 6,179,430 Common Shares held by California Savings Bank, 4,634,580 Common Shares held by San Diego National Bank, 2,471,775 Common shares held by Indy Mac Bank, F.S.B., 1,235,880 Common Shares held by North Houston Bank, and 494,355 Common Shares held by Community Bank & Trust.  The FDIC has informed us it does not believe it is required to aggregate its beneficial ownership of such shares in these six separate receiverships (and, therefore, has not filed a Schedule 13D) and that even if it were required to aggregate its ownership under SEC Rule 13d-3, that as an “independent establishment of the United States,” under Section 3(c) of the 34 Act it is exempt from the provisions of the 34 Act.  If the FDIC were to vote these shares as a block, its aggregate voting ownership percentage would be 6.7%. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name and Title                                                                               |   | Amount andNature ofBeneficial Ownershipof Common Shares |   | Percent ofCommonSharesBeneficiallyOwned(1) |   | Number ofVotingShares |   | VotingOwnershipPercentage(2) |   |
|----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------------------------------------------|--------|-----------------------|--------|------------------------------|--------|
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Robert L. LevyManaging Trustee, President,Chief Financial Officer andChief Operating Officer |   | 258,292                                                 |   | *                                          |   | 258,292               |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Jerome Y. HalperinManaging Trustee(independent trustee)                                      |   | 50,604                                                  |   | *                                          |   | 50,604                |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| William T. HymanSenior Managing Director                                                     |   | 137,580                                                 |   | *                                          |   | 137,580               |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Robert L. LoverdManaging Trustee(independent trustee)                                        |   | 64,664                                                  |   | *                                          |   | 64,664                |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Robert A. MeisterManaging Trustee(independent trustee)                                       |   | 51,535                                                  |   | *                                          |   | 51,535                |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Michael RiechmanSenior Managing Director                                                     |   | --                                                      |   | 0                                          | %      | --                    |   | 0                            | %      |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| Thomas W. WhiteManaging Trustee(independent trustee)                                         |   | 21,372                                                  |   | *                                          |   | 21,372                |   | *                            |   |
|                                                                                         |   |                                                    |   |                                       |   |                  |   |                         |   |
| All Executive Officers andTrustees of the Company asa group (10 persons)                     |   | 681,400                                                 |   | *                                          |   | 681,400               |   | *                            |   |

| * | Less than 1% of the outstanding Common Shares. |
|---|------------------------------------------------|

| (1) | Calculated in accordance with Rule 13d-3. |
|-----|-------------------------------------------|

----

| (2) | Based on (i) Total Common Shares and (ii) Special Preferred Voting Shares. |
|-----|----------------------------------------------------------------------------|

| Item 13.   | Certain Relationships and Related Transactions, and Director Independence |
|----------------------|---------------------------------------------------------------------------|

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| Item 14.   | Principal Accounting Fees and Services. |
|----------------------|-----------------------------------------|

|                                                                                                                                                                                                                                                       |   | 2011   |      |   | 2010   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|  Audit Fees(a)                                                                                                                                                                                                                                        |   | $      | 1,995,000 |   |   | $      | 3,165,820 |   |
| Audit-Related Fees                                                                                                                                                                                                                                         |   |   | --        |   |   |   | -- |   |
| Tax Fees                                                                                                                                                                                                                                                   |   |   | 313,227   |   |   |   | 98,880 |   |
| All Other Fees                                                                                                                                                                                                                                             |   |   | --        |   |   |   | -- |   |
| Total                                                                                                                                                                                                                                                      |   | $      | 2,308,227 |   |   | $      | 3,264,700 |   |
|  (a)   Fees for audit services billed for 2011 and 2010 consisted of the audit of our annual financial statements and internal controls, reviews of our quarterly financial statements, consents and other services related to SEC matters. |   |

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| Item 15.   | Exhibits, Financial Statement Schedules. |
|----------------------|------------------------------------------|

|                 | Exhibit Index                                                                                                                                                         |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit Number  | Description of Document                                                                                                                                               |
|            | 31.1    Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.  |
|            | 32.1    Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.  |

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| Date:  |   | April 18, 2012 |   | By:    |   | /s/ Robert L. Levy                                                                                                                       |
|--------|--------|----------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |           |   |   |   | Robert L. LevyPresident, Chief Operating Officer andChief Financial Officer(Principal Executive Officer and Principal Financial Officer) |

| Date:  |   | April 18, 2012 |   | By:    |   | /s/ Robert L. Levy                                                                                                                       |
|--------|--------|----------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |           |   |   |   | Robert L. LevyPresident, Chief Operating Officer andChief Financial Officer(Principal Executive Officer and Principal Financial Officer) |

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| Signature                             |   | Title                                                                            |   | Date           |
|---------------------------------------|--------|----------------------------------------------------------------------------------|--------|----------------|
|                                  |   |                                                                             |   |           |
|  /s/ Robert L. Levy              |   |                                                                             |   |           |
| Robert L. Levy                        |   | Managing Trustee, President, Chief Operating Officer and Chief Financial Officer |   | April 18, 2012 |
|  /s/ *                           |   |                                                                             |   |           |
| Jerome Y. Halperin                    |   | Managing Trustee                                                                 |   | April 18, 2012 |
|  /s/ *                           |   |                                                                             |   |           |
| Robert L. Loverd                      |   | Managing Trustee                                                                 |   | April 18, 2012 |
|  /s/ *                           |   |                                                                             |   |           |
| Robert A. Meister                     |   | Managing Trustee                                                                 |   | April 18, 2012 |
|  /s/ *                           |   |                                                                             |   |      |
| Thomas W. White                       |   | Managing Trustee                                                                 |   | April 18, 2012 |
|  *  /s/ Robert L. Levy |   |                                                                             |   |           |
| Robert L. LevyAttorney-in-fact        |   |                                                                             |   |           |

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