Our ability to successfully handle the challenges related to a significant acquisition while continuing to provide quality service is demonstrated by our industry servicer ratings. In 2011, all of Green Tree's servicer ratings were raised or affirmed by Moody's Investors Service, Fitch Ratings and Standard & Poor's Rating Services. This was quite an accomplishment in a challenging time for the entire mortgage servicing industry.

Even as we continue to earn favorable ratings, we know that it's important to meet the constantly changing regulatory and compliance requirements. I am proud to say that we have done an outstanding job in this effort, which is reflected in the confidence our clients show in us every day.

Opportunities for our business

As we move into 2012, we are very excited about our direction and the opportunities for continued growth in the coming year. There is a tremendous need and great demand for our services and we believe that the on-going fundamental changes in the structure of our industry will continue to be positive for us.

During 2011, over 1.6 million accounts with a UPB of over $250 billion were transferred to specialty servicers. We expect that volume to grow over the next several years as the industry works to resolve the significant backlog of distressed assets. We believe Walter Investment is the model for how the accounts of credit-sensitive borrowers should be serviced, and we are working to position our Company to not only assist with the resolution of these already distressed assets, but also to develop sustainable flows of new business in the future.

With only a few companies having the ability to handle high-volume specialty servicing, we believe we are uniquely positioned to be the recipient of a significant number of future subservicing transfers as most of the largest owners of credit-sensitive assets are already our clients. As our pipeline continues to grow and mature, we see ample opportunity to meet our growth targets for 2012 predominantly through subservicing transfers, though we remain open to opportunistic purchases of mortgage servicing rights (MSRs).

Walter Investment's business model has a number of favorable characteristics which help drive value for our shareholders. Our business has relatively low capital requirements and we earn incentive fees for improving the value of our clients' assets — a win-win for both our clients and ourselves when we do our job well. We also generate revenue streams from our ancillary businesses such as Insurance and Asset Recovery Management, which leverage our core servicing business and provide organic growth opportunities for the Company.

We have earned a solid history of best-in-class performance in servicing credit-sensitive residential mortgage assets. We believe this reputation positions us as the favored partner for our clients, which will continue our growth and success.

Looking Ahead

Our highly regulatory-compliant specialty servicing platform enhances the value of credit-sensitive assets, as compared to the performance of other servicers. This value is demonstrable, compelling and is continuously validated both in the legacy portfolios we service and the improved performance we demonstrate on the subserviced portfolios more recently entrusted to us. Our capital-light business model gives shareholders the opportunity to benefit from the major growth opportunity in our sector, while taking less balance-sheet risk.

We are focused on driving sustainable growth in our business and maximizing returns to shareholders, and we know our success in this regard couldn't happen without the support of our employees, our leadership and our shareholders, all of whom we thank.

It has been a pleasure working with the Green Tree team and watching our two companies perform so well in 2011. I am extremely excited about our prospects for 2012 and beyond, and look forward to continued outstanding performance.

Mark J. O'Brien
Chairman and Chief Executive Officer
March 23, 2012

A year of record growth in our servicing portfolio