Exhibit 99.1


                  HANOVER ANNOUNCES NEW CHIEF FINANCIAL OFFICER

      EDISON, NEW JERSEY, APRIL 15, 2005 - Hanover Capital Mortgage
Holdings, Inc. (AMEX: HCM), announced that Harold F. McElraft, 60, has
joined HCM's management team as the Chief Financial Officer and
Treasurer.  Mr. McElraft succeeds J. Holly Loux, whose employment with HCM
as its Chief Financial Officer and Treasurer ended on April 12, 2005.

Since 2002, Mr. McElraft has been a partner with the New York office of
Tatum CFO Partners, LLP, a national firm of career chief financial
officers that provides financial solutions to companies of all sizes.
Since November 2004, Mr. McElraft was engaged as a consultant to HCM.
From 1998 to 2002, Mr. McElraft served as Department Vice President with
Prudential Financial, Inc. in Newark, New Jersey.  Mr. McElraft has over
twenty-five years of financial management experience in the financial
services industry. His financial executive experience includes positions
with Lincoln Investment Management, Inc., GNA Corporation, Templeton Funds
Management, and AIM Management. He is a certified public accountant and a
former Audit Partner with KPMG LLP.

Mr. McElraft will remain a partner in Tatum CFO Partners, LLP, which will allow
him access to a variety of professional resources provided by Tatum CFO
Partners, LLP to its partners.

 "Harold's experience in financial services and strong accounting background
make him a great addition to the Hanover team, as we move toward our goals of
raising and employing capital into the prime residential mortgage market," said
John A. Burchett, HCM's Chief Executive Officer.

Hanover Capital Mortgage Holdings, Inc. is a mortgage REIT with offices
throughout the country staffed by seasoned mortgage capital markets
professionals. Hanover invests in mortgage-backed securities and, to a lesser
extent, mortgage loans and engages in non-interest income-generating activities
through its subsidiaries, HanoverTrade, Inc. and Hanover Capital Partners Ltd.
HanoverTrade provides loan sale advisory and traditional loan brokerage
services, technology solutions and valuation services. HanoverTrade also brokers
loan pools, mortgage servicing rights and other similar assets through an
Internet-based exchange. Hanover Capital Partners provides consulting and
outsourcing services for third parties, including loan sale advisory services,
loan file due diligence reviews, staffing solutions and mortgage assignment and
collateral rectification services. For further information, visit Hanover's Web
site at www.hanovercapitalholdings.com.

Certain statements in this press release may constitute "forward-looking"
statements as defined in Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended. Hanover is
including this cautionary statement to make applicable and take advantage of the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Statements that are not historical fact are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors that could cause the actual results, performance or
achievements, to differ materially from future results, performance or
achievements. The forward-looking statements are based on Hanover's current
belief, intentions and expectations. These statements are not

guarantees or indicative of future performance. Important assumptions and other
important factors that could cause actual results to differ materially from
those forward-looking statements include, but are not limited to, those factors,
risks and uncertainties that are described in Item 1 of Hanover's Annual Report
on Form 10-K for the year ended December 31, 2004 and in other securities
filings by Hanover. Hanover's future financial condition and results of
operations, as well as any forward-looking statements, are subject to change and
inherent risks and uncertainties. The forward-looking statements contained in
this press release are made only as of the date hereof and Hanover undertakes no
obligation to update or revise the information contained in this announcement
whether as a result of new information, subsequent events or circumstances or
otherwise, unless otherwise required by law.

                                     # # # #