IRVINE, Calif., April 6 /PRNewswire-FirstCall/ -- ECC Capital Corporation
(NYSE: ECR), a mortgage finance company that originates and invests in
residential mortgage loans, today announced 2005 first quarter loan production
of $2.25 billion. First quarter 2005 production represents a 42.5% increase
over last year's first quarter loan production of $1.58 billion. ECC
Capital's first quarter 2005 results compared to the same period in 2004 are
summarized below:
($ amounts in millions)
2005 2004
Volume Days Volume Days % Change Volume
QTD $2,250.8 61 $1,579.8 61 42.5%
"Production for the first quarter of 2005 outpaced the first quarter of
2004 by 42.5%" said Shabi Asghar, President and Co-Chief Executive Officer of
ECC Capital Corporation. "On a sequential basis, our production volume in the
first quarter of 2005 was down 12.2% compared to volume in the fourth quarter
of 2004. The first quarter 2005 and fourth quarter 2004 results were in line
with our internal projections. The first quarter 2005 results reflected the
traditional seasonality of the business."
About ECC Capital Corporation
ECC Capital Corporation, headquartered in Irvine, Calif., is a mortgage
finance company that originates and invests in residential mortgage loans.
Through its wholesale and retail subsidiaries, ECC Capital offers a series of
mortgage products to borrowers, with a particular emphasis on "nonconforming"
borrowers who generally do not satisfy the credit, collateral, documentation
or other standards required by conventional mortgage lenders and loan buyers.
ECC Capital is structured to qualify as a real estate investment trust (REIT)
by managing a portfolio of nonconforming loans it originates or acquires. As
a REIT, ECC Capital's principal business objective is to generate net income
for distribution to stockholders from the spread between the interest income
on its assets in its portfolio and the costs of capital to finance its
acquisition of these assets.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed to be
forward-looking statements under federal securities laws and ECC Capital
intends that such forward-looking statements be subject to the safe-harbor
created thereby. These forward-looking statements are based on current
expectations and assumptions and are subject to risks and uncertainties, which
could affect ECC Capital's future plans. ECC Capital cautions that these
statements are qualified by important factors that could cause actual results
to differ materially from those reflected by the forward-looking statements.
Such factors include, but are not limited to, (i) the condition of the U.S.
economy and financial system, (ii) the interest rate environment, (iii) the
stability of residential property values, (iv) the potential effect of new
state or federal laws or regulations, (v) the effect of increasing competition
in ECC Capital's sector, (vi) ECC Capital's ability to successfully implement
its growth strategy, (vii) continued availability of credit facilities and
access to the securitization markets or other funding sources, and (viii) ECC
Capital's ability and the ability of its subsidiaries to operate effectively
within the limitations imposed on REITs by federal tax rules. You should also
be aware that all information in this news release is as of April 6, 2005.
ECC Capital undertakes no duty to update any forward-looking statement to
conform the statement to actual results or changes in ECC Capital's
expectations.
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