MortgageIT Holdings, Inc. Reports Selected Preliminary 2006 Q1 Operating Data
* Funds $7.19 billion of loans in the first quarter
* Gain on sale on prime loans improved significantly
* Completed a loan securitization of approximately $750 million
NEW YORK, April 12 -- MortgageIT Holdings, Inc.
(NYSE: MHL), a residential mortgage real estate investment trust ("REIT"),
today reported selected preliminary operating data for the first quarter
ended March 31, 2006. The Company will report its 2006 first quarter
results after market hours on May 8, 2006.
Portfolio Activity Highlights
The Company's 100% self-originated portfolio totaled approximately $5.0
billion at the end of the first quarter of 2006. The portfolio included
approximately $25.0 million of self-originated mortgage backed securities
that the Company retained as part of a securitized loan sale.
- The Company expects the adjusted return on assets for the portfolio to
be between 60 and 70 basis points for the first quarter of 2006.
- During the first quarter, the Company completed a loan securitization of
approximately $750 million. The funding cost on this deal had the lowest
spread to LIBOR that the Company has received.
Mortgage Bank Loan Funding Activity Highlights
During the first quarter of 2006, the Company funded $7.19 billion of
loans, an increase of 66% over the prior year period and exceeding the
Company's guidance of $6.0 to $6.5 billion.
- Gain on sale on prime loans sold to third parties during the first
quarter improved significantly from fourth quarter 2005 levels.
- During the first quarter, the Company sold to third parties
substantially all of its inventory of wholesale sub-prime loans, and
completed its planned exit from the national wholesale sub-prime
business. Gain on sale on sub-prime loans sold to third parties will be
negative for the first quarter.
First Quarter Funding Volume ($ Billions)
Banked Volume 6.83
Brokered Volume 0.36
Total Fundings 7.19
Loans Purchased by Third Parties 6.94
Loans Transferred to Portfolio 0.75
Total Loans Sold/Transferred 7.69
% Refi 56%
% Purchase Money 44%
First Quarter 2006 Conference Call Information
MortgageIT Holdings, Inc. will release its 2006 first quarter financial
results after market hours on Monday, May 8, 2006. The Company will also
hold a conference call to discuss its first quarter financial results on
Tuesday, May 9, 2006 at 10:00 a.m. Eastern Time. Interested parties may
listen to the live call by dialing 888-694-4702 (U.S.) or 973-582-2741
(International) and referencing the conference ID #7263046, or by visiting
the MortgageIT Holdings corporate website,
http://www.mortgageitholdings.com, to listen to a live conference call
webcast.
A replay of the conference call will be available through Tuesday, May
16, 2006, at midnight ET. The replay can be accessed by dialing
877-519-4471 (U.S.) and 973-341-3080 (International). The pass code for the
replay is 7263046.
About MortgageIT Holdings, Inc.
MortgageIT Holdings, Inc. (NYSE: MHL) is a self-administered mortgage
real estate investment trust ("REIT") focused on the residential lending
market. The Company self-originates its investment portfolio of high
quality adjustable rate mortgage ("ARM") loans through MortgageIT, Inc.,
its wholly owned residential mortgage banking subsidiary. MortgageIT, Inc.
is a full- service residential mortgage banking company that is licensed to
originate loans throughout the United States. MortgageIT Holdings is
organized and conducts its operations to qualify as a REIT for federal
income tax purposes. MortgageIT is organized and operates as MortgageIT
Holdings' taxable REIT subsidiary. For more information, please visit
http://www.mortgageitholdings.com.
Forward-Looking Statements
Certain items in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are statements that relate to
future, not past, events. In this context, forward-looking statements often
address the Company's expected future business and financial performance,
and often contain words such as "expects," "anticipates," "intends,"
"plans," "believes," "will" or other similar words or expressions.
Forward-looking statements, by their nature, address matters that are, to
different degrees, uncertain and include, among other things, statements
relating to the Company's ability to fund a fully-leveraged,
self-originated loan portfolio, its anticipated loan funding volume and the
Company's ability to pay dividends. These statements are based on the
current economic environment and management's current expectations and
beliefs, and are subject to a number of trends and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. Forward-looking statements are inherently
subject to significant economic, competitive, and other contingencies that
are beyond the control of management. The Company can give no assurance
that its expectations will be attained. Factors that could cause actual
results to differ materially from the Company's expectations include, but
are not limited to, MortgageIT, Inc.'s continued ability to originate new
loans, including loans that the Company deems suitable for its
securitization portfolio; changes in the capital markets, including changes
in interest rates and/or credit spreads; and other risks detailed in the
Company's Annual Report on Form 10-K that was filed with the Securities and
Exchange Commission ("SEC") on March 15, 2006 and from time to time in the
Company's other SEC filings. Such forward-looking statements speak only as
of the date of this press release. The Company expressly disclaims any
obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or change in events, conditions
or circumstances on which any statement is based.
SOURCE MortgageIT Holdings, Inc.
Web Site: http://www.mortgageitholdings.com
