Realty Finance Corporation Receives Notice of Termination as Collateral Manager of...

Realty Finance Corporation Receives Notice of Termination as Collateral
Manager of CDO 2007

HARTFORD, Conn., May 18 /PRNewswire-FirstCall/ -- Realty Finance Corporation
(Other OTC: RTYFZ) announced that on Friday afternoon, May 15, 2009, the
Company received written notice from MBIA Insurance Corporation ("MBIA") of
their decision to terminate the existing collateral management agreement, as
amended, in respect of the Company's $1.0 billion collateralized debt
obligation ("CDO 2007") and to remove the Company as the collateral manager of
CDO 2007 upon the appointment of a successor collateral manager. As
previously announced, the breach of the overcollateralization covenant in
either of the Company's CDOs provided MBIA, the controlling class of CDO 2007
bondholders, the ability to terminate the existing collateral management
agreement, as amended, and to remove the Company as the collateral manager of
CDO 2007. Given the termination, the Company will no longer be responsible
for the management services of CDO 2007 and therefore, will not be entitled to
receive senior and subordinate collateral management fees beyond fees already
earned.

About Realty Finance Corporation
Realty Finance Corporation is a commercial real estate specialty finance
company primarily focused on originating, acquiring, investing in, financing
and managing a diversified portfolio of commercial real estate-related loans
and securities. Realty Finance Corporation has elected to qualify to be taxed
as a real estate investment trust, or REIT, for federal income tax purposes.
For more information on the Company, please visit the Company's website at
http://www.realtyfinancecorp.com.

Forward-Looking Information
This press release contains forward-looking statements based upon the
Company's beliefs, assumptions and expectations of its future performance,
taking into account all information currently available. These beliefs,
assumptions and expectations can change as a result of many possible events or
factors, not all of which are known to the Company or are within its control.
If a change occurs, the Company's business, financial condition, liquidity and
results of operations may vary materially from those expressed in its
forward-looking statements. The factors that could cause actual results to
vary from the Company's forward-looking statements include: the risk factors
included as part of the Company's Annual Report on Form 10-K for the period
December 31, 2008 filed on March 16, 2009; the Company's future operating
results; its business operations and prospects; general volatility of the
securities market in which the Company invests and the market prices of its
common stock; the effect of trading on the Pink Sheets; the Company's ability
to begin making investments in the future; availability, terms and deployment
of short-term and long-term capital; availability of qualified personnel;
changes in the industry; interest rates; the debt securities, credit and
capital markets, the general economy or the commercial finance and real estate
markets specifically; performance and financial condition of borrowers and
corporate customers; increased prepayments of the mortgage and other loans
underlying the Company's investments; the status of the class action lawsuit;
the potential derivative shareholder claim and any future litigation that may
arise; the ultimate resolution of the Company's eight non-performing loans
having an unpaid principal balance of $186.9 million and the Company's six
watch list loans having an unpaid principal balance of $188.8 million; the
monetization of the Company's joint venture investments; the ability to come
back into compliance with the overcollateralization tests in CDO I and CDO II;
the ability to close the transaction with Stoneleigh; the ability to continue
as a going concern; availability of liquidity; and other factors, which are
beyond the Company's control. The Company undertakes no obligation to publicly
update or revise any of the forward-looking statements. For further
information, please refer to the Company's previous periodic filings with the
Securities and Exchange Commission. Note, the Company is no longer a
Securities and Exchange Commission reporting company as of March 16, 2009.

SOURCE Realty Finance Corporation

Daniel Farr, Chief Financial Officer of Realty Finance Corporation,
+1-860-275-6234, dfarr@realtyfinancecorp.com