American Residential Investment Trust, Inc. Signs Letter of Intent with LoanCity

Apr 16, 2001, 01:00 ET from American Residential Investment Trust, Inc.

    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
 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.
    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
 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.