DEL MAR, Calif., April 16 /PRNewswire/ -- American Residential Investment
Trust, Inc. (NYSE: INV), a mortgage real estate investment trust (REIT),
announced today that it had signed a letter of intent to purchase a
controlling interest in LoanCity.com, a leading provider of loan search
software and fulfillment tailored to the needs of mortgage brokers and
mortgage bankers. The LoanCity investment would be held in a qualified
taxable subsidiary of the Company.
In commenting on the investment, John M. Robbins, Jr., Chief Executive
Officer of American Residential, said, "Acquiring a controlling interest in
LoanCity is consistent with our previously announced goal of entering the
mortgage origination business through the start up or acquisition of a
mortgage production company. We believe that this company has significant
growth potential. It is attractively positioned in the mortgage market
because it combines search software with a real fulfillment process from loan
underwriting to funding. LoanCity creates an efficient link between mortgage
brokers and the nation's largest home lenders. Its business model is based on
the premise that mortgage brokers will continue to play a dominant role in
helping borrowers find the best home loan."
Robbins continued, "The size of the mortgage market is estimated to be
$1.5 trillion in 2001. Today, 65% of homebuyers use mortgage brokers to
obtain their mortgages because of the excellent rates, terms and service they
receive. LoanCity's search software offers competitive market execution to
brokers on a loan-by-loan basis."
LoanCity generated approximately $400 million in mortgage loans in March
2001. It was formed in 1987 and began offering its METRO 8.0 search software
in 2000 through its network of five regional offices located in Arizona,
California, and Florida. LoanCity is licensed to do business in 49 states and
has correspondent agreements with 30 top-tier lending institutions.
Rick Soukoulis, Chief Executive Officer of LoanCity, stated, "Joining
American Residential creates a winning combination for both companies. We
have the technology solution to help simplify the mortgage process and connect
all market participants. Our fulfillment systems close home loans quickly and
easily. Loans are then sold to the nation's leading financial institutions,
providing them with a highly efficient channel for low-cost loan volume. The
collective mortgage banking experience of the American Residential management
team will help us achieve our strategic goals. At the same time, the
commitment of financial and management resources will strengthen our operating
platform."
Terms of the proposed transaction were not disclosed. The deal is
expected to close in May, subject to board approval and the satisfactory
completion of due diligence.
About American Residential Investment Trust
Headquartered in Del Mar, California, American Residential Investment
Trust, Inc. is a real estate investment trust (REIT) that has invested
primarily in non-conforming, residential mortgage assets. For more
information on American Residential, please visit the Company's web site at
http://www.amerreit.com.
About LoanCity
LoanCity gives the mortgage industry a marketplace and fulfillment
platform, a combination of technology and transaction services that
revolutionizes the way brokers shop for and fund mortgages on behalf of their
customers. The Company's software, offered free over the Internet, allows
approved mortgage brokers to instantaneously match their customers with some
of the best loans available in the market. It is headquartered in San Jose,
CA.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of federal securities laws.
Forward-looking statements include statements regarding the Company's
potential investment in LoanCity, LoanCity's growth potential and LoanCity's
ability to achieve its strategic goals. Actual results and the timing of
certain events could differ materially from those projected in or contemplated
by these forward-looking statements due to a number of factors, including but
not limited to: general economic conditions; mortgage loan prepayment rates;
credit losses; overall interest rates; the shape of the yield curve; the
availability of suitable mortgage assets; the availability of financing for
the origination, acquisition or securitization of mortgage assets; the impact
of leverage; the Company's ability to successfully complete due diligence and
negotiate a definitive agreement to invest in LoanCity; and the Company's
liquidity position and other risk factors outlined in the Company's SEC
reports.
For further information please contact investor and analyst relations,
Judith Berry, Chief Financial Officer, 858-350-5012, judy@amerreit.com, or
Clay Strittmatter, Senior Vice President, Finance, 858-350-5006,
clay@amerreit.com, both of American Residential Investment Trust, Inc.; or
media, Corinne Forti, President of Forti Communications, Inc., 805-498-0113,
forticomm@aol.com, for American Residential Investment Trust, Inc.
SOURCE American Residential Investment Trust, Inc.
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Related links:
http://www.amerreit.com
CONTACT:
investor and analyst relations, Judith Berry,
Chief Financial Officer, 858-350-5012, judy@amerreit.com, or Clay
Strittmatter, Senior Vice President, Finance, 858-350-5006,
clay@amerreit.com, both of American Residential Investment Trust,
Inc.; or media, Corinne Forti, President of Forti Communications,
Inc., 805-498-0113, forticomm@aol.com, for American Residential
Investment Trust, Inc.
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