ECC Capital Corporation Announces Common Stock Cash Distribution of $0.10 Per
Share
IRVINE, Calif., Feb. 28 /PRNewswire-FirstCall/ -- ECC Capital Corporation
(OTC: ECRO), a mortgage finance real estate investment trust, announced today
that its Board of Directors has declared a cash distribution of $0.10 per
share of common stock. ECC Capital will make this distribution on Friday,
March 21, 2008, to shareholders of record on Friday, March 7, 2008.
ECC Capital recently received approximately $9.5 million from the release
of over-collateralization proceeds related to the Encore Credit Receivables
Trust 2005-1. The fact that ECC Capital received this distribution is not an
indication that it will receive any additional distributions from any of its
securitization trusts or, if it does receive a distribution, that those
proceeds will be distributed to shareholders. The circumstances of the
over-collateralization release from the 2005-1 trust were specific to that
trust. These circumstances include, but are not limited to:
-- This trust had more time to season prior to the deterioration of the
lending and housing markets than the Encore Credit Receivables Trust
2005-2, 2005-3 and 2005-4 (the "Remaining Trusts"); and
-- The losses and delinquencies for the 2005-1 trust were lower than the
Remaining Trusts at comparable ages.
ECC Capital continues to experience higher levels of delinquencies and
losses on mortgage loans held for investment in its securitization trusts and
deterioration in the housing market. Therefore, ECC Capital cannot guaranty
it will receive any additional over-collateralization proceeds. The amount
and timing of any over-collateralization released from any securitization
trusts depends on, among other things, the applicable delinquency and credit
loss limits specified in the securitization agreements and loan performance in
those trusts. Further, ECC Capital has repeatedly cautioned about the
uncertainty of any future distributions to shareholders due to future capital
requirements, the adverse, changing and unpredictable environment in which it
operates, the continued deterioration of the lending industry and capital
markets and the subsequent adverse effects these factors have on ECC Capital's
loan portfolio.
Although ECC Capital has issued press releases in the past, in an effort
to reduce costs and because of reduced staff and limited operations, ECC
Capital limits its use of press releases. Please periodically check ECC
Capital's website for information. You may also contact ECC Capital using the
toll free number of 866-338-8749 or via email at
investorrelations@ecccapital.com.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release, including those
regarding future distributions to shareholders and the release of proceeds
related to over-collateralization may be deemed forward-looking statements
under federal securities laws and ECC Capital intends that those
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. These
factors include, but are not limited to: (1) the impact of losses and
delinquencies from ECC Capital's residual interests in securitizations (2) the
tightening of credit standards, (3) the condition of the U.S. economy and
financial system, (4) interest rates and the subsequent effect on the
business, (5) ECC Capital's ability to obtain quality loan servicing and
default management services, (6) the stability of residential property values,
(7) the potential effect of new state or federal laws or regulations, (8) ECC
Capital's ability to implement successfully its business plan, (9) continued
availability of credit facilities and access to the securitization and capital
markets or other sources of capital, (10) ECC Capital's ability and the
ability of its subsidiaries to operate effectively within the limitations
imposed on REITs by federal tax rules, (11) ECC Capital's ability to qualify
for exemptions under any SEC registration requirements; (12) ECC Capital's
ability to retain qualified personnel, and (13) other factors and risks
discussed in ECC Capital's financial report for the three and nine months
ended September 30, 2007 posted on its webpage or its Annual Report on Form
10-K for the year ended December 31, 2006, which is on file with the
Securities and Exchange Commission. You should also be aware that, except as
otherwise specified, all information in this news release is as of
February 28, 2008. 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.
For Further Information:
AT THE COMPANY:
Roque A. Santi
President and Chief Financial Officer
(949) 955-8730
rsanti@ecccapital.com
SOURCE ECC Capital Corporation
Roque A. Santi, President and Chief Financial Officer of ECC Capital
Corporation, +1-949-955-8730, rsanti@ecccapital.com
