The New York Mortgage Company, Llc Responds To Erroneously Reported Associated Press Article
The New York Mortgage Company, LLC Responds to Erroneously Reported Associated Press Article
NEW YORK, NY September 11, 2006 – The New York Mortgage Company, LLC (NYMC), today announced that The Associated Press had erroneously reported on September, 9, 2006 that the company was one of 11 lenders being charged with steering prospective home buyers into mortgages they couldn't afford in the State of Massachusetts. NYMC was not in fact one of the firms charged with this behavior. As such, the Company requested a correction by the Associated Press and one has been issued.
Mr. Steven B. Schnall, Chairman, President and Co-CEO stated, “The correct facts are that NYMC has a branch license application pending for a new desk rental location in Lowell, MA. An examiner from the State of Massachusetts issued NYMC a cease and desist order, pertaining only to our Lowell, MA office, alleging only that we were operating this specific branch location without a license. The branch is not open for business yet and is being renovated in preparation for its opening once the branch license has been approved. Accordingly, the order was issued inappropriately and will be disputed by NYMC.”
Mr. Schnall further commented, “In connection with this event, the state examiner also visited our Wakefield, MA office and reviewed several of our mortgage files – finding nothing inappropriate whatsoever. NYMC was not found or even alleged to have ‘steered prospective homebuyers into mortgages they couldn't afford' as was reported by the Associated Press. At NYMC we pride ourselves on arranging financing for homeowners and homebuyers that accommodates their needs and is affordable and reasonable given their financial circumstances.”
About New York Mortgage Company, LLC
The New York Mortgage Company, LLC (“NYMC”), a wholly owned subsidiary of New York Mortgage Trust, a self-advised residential mortgage finance company organized as a real estate investment trust (“REIT”) for federal income tax purposes, originates a broad spectrum of residential loan products with a focus on high credit quality, or prime, loans. In addition to prime loans, NYMC also originates jumbo loans, alternative-A loans, sub-prime loans and home equity or second mortgage loans through its retail and wholesale origination branch network. New York Mortgage Trust's REIT portfolio is comprised of securitized, high credit quality, adjustable and hybrid ARM loans. As a REIT, the company is not subject to federal income tax provided that it distributes at least 90% of its REIT taxable income to its stockholders.
This news release contains forward-looking statements that predict or describe future events or trends. The matters described in these forward- looking statements are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond New York Mortgage Trust's control. The Company faces many risks that could cause its actual performance to differ materially from the results predicted by its forward- looking statements, including, without limitation, the possibilities that a rise in interest rates may cause a decline in the market value of the Company's assets, a decrease in the demand for mortgage loans may have a negative effect on the Company's volume of closed loan originations, prepayment rates may change, borrowings to finance the purchase of assets may not be available on favorable terms, the Company may not be able to maintain its qualification as a REIT for federal tax purposes, the Company may experience the risks associated with investing in real estate, including changes in business conditions and the general economy, and the Company's hedging strategies may not be effective. The reports that the Company files with the Securities and Exchange Commission contain a fuller description of these and many other risks to which the Company is subject. Because of those risks, the Company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward-looking statements. The information set forth in this news release represents management's current expectations and intentions. The Company assumes no responsibility to issue updates to the forward-looking matters discussed in this news release.
For Further Information
AT THE COMPANY
Michael I. Wirth, Chief Financial Officer
Phone: 212-634-2342
Email: [email protected]
AT FINANCIAL RELATIONS BOARD
Joe Calabrese (General) 212-827-3772
Julie Tu (Analysts) 212-827-3776