EX-99.1 3 file002.htm SLIDE PRESENTATION

ABS East
September 13-16, 2005
Boca Raton, Florida

Disclaimer

The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Any offer of securities is and
shall be made pursuant to a definitive prospectus or other appropriate offering document prepared by or on behalf of MortgageIT
Holdings, Inc. (“MortgageIT Holdings”), which would contain material information not contained herein and which does and shall
supersede, amend and/or supplement this information in its entirety. Any decision to invest in MortgageIT Holdings’ securities
should be made after reviewing such definitive prospectus or other offering document, conducting such investigations as the
investor deems necessary and consulting the investor's own legal, accounting and tax advisors in order to make an independent
determination of the suitability and consequences of an investment in the securities.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the
securities described herein or passed upon the adequacy or accuracy of the information contained herein. Any representation to
the contrary is a criminal offense.

Neither MortgageIT Holdings, nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy
or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or
representation whether as to past or future performance. The information may include estimates and projections that involve
significant elements of subjective judgment and analysis. No representations are made as to the accuracy of such estimates or
projections or that all assumptions relating to such estimates or projections have been considered or stated or that such projections
will be realized. Much of the information contained herein is of a general nature intended to provide a broad overview of MortgageIT
Holdings’ business. MortgageIT Holdings disclaims any and all liability relating to this information, including, without limitation any
express or implied representation or warranty for statements contained in and omissions from this information. MortgageIT
Holdings does not expect to update or otherwise revise the information contained herein.

This presentation may contain forward-looking statements. Any forward-looking statement would be subject to certain risks and
uncertainties that could cause actual results to differ materially from those anticipated. Individuals should not place undue reliance
on forward-looking statements and are advised to conduct their own independent analysis and make their own independent
determination. Neither MortgageIT Holdings nor any of its affiliates undertakes any obligations to revise publicly any forward-
looking statements to reflect subsequent events or circumstances.

Corporate Overview

Today

Mortgage REIT with a nationwide platform that originated more than $13 billion in 2004 and $10.7
billion in the first half of 2005

Headquartered in New York City with over 1,900 employees in 53 branches across 23 states
nationwide

Completed an Initial Public Offering of $175 million on NYSE on July 30, 2004 and trading under the
symbol “MHL”

Secondary Offering completed in July with net proceeds of approximately $150 million

Market capitalization of approximately $478 million (as of September 9, 2005)

Self-originated 100% of our $3.8 billion high quality adjustable rate mortgage portfolio through our
mortgage subsidiary

Mortgage origination subsidiary is a major supplier of loans to banks, thrifts, and traditional finance
companies throughout the United States

REIT Senior Management Team consists of:

Glenn Mouridy, President & Chief Financial Officer

Doug Kerr, Chief Investment Officer

Ali Moazami, Chief Credit Officer

Corporate Structure

Real Estate Investment Trust (REIT)

Taxable Mortgage Banking Subsidiary (TRS)

Wholesale

(72%)

Correspondent

(10%)

Wholesale
Non-Prime

(13%)

Retail

(5%)

Percentages based on 2Q:05 banked originations of $6.0 billion

Company Highlights

2004 Highlights

Successfully completed IPO that raised approximately $175 million

Funded volume of more than $13.0 billion ($4.4 billion in 4Q:04)

Self-originated portfolio of $2.6 billion by year-end 2004

Paid $0.44 dividend for combined 3Q:04 and 4Q:04

Completed 2 securitizations representing total issuance of $1.4 billion

2005 Developments

Paid first full run rate dividend in 1Q:05 of $0.48

Issued and sold $75 million in private placements of trust preferred securities

Issued $150 million of equity in secondary offering

Issued $3.4 billion of RMBS in 4 securitizations

Current Results & Guidance

2Q:05 Results

Earned adjusted net income of $10.6 million or $0.53 per diluted share

Funded company-record $6.4 billion of loans, up 89% from year ago period and
47% quarter-over-quarter

Transferred $899 million to investment portfolio, which stood at $3.8 billion on June
30th

3Q:05 Guidance

Projected increase in the investment portfolio to $5 billion ($6.0-$6.3 billion by
year-end 2005)

Projected total funded volume of between $7.0 and $7.5 billion (125% to 141%
increase year-over-year)

Projected dividend of $0.48

18 years of operating experience

Brokered or sold whole loans exclusively until launch of securitization program

$4.8 billion of securitizations to date

An Established Company

IPI formed as a
mortgage broker

July 2004 IPO raised $175
million and created
MortgageIT Holdings, Inc.

MortgageIT founded;
wholesale lending
platform (MIT Lending
added later)

1988 1999 2004 2005

Launched securitization
program: $808 million in Sept.
’04 and $630 million in Nov. ’04

Securitized $1
billion in Jan. ’ 05

Paid first dividend

of $0.44 (for IPO

through 4Q:04)

Delivered on promise to
create self-originated
portfolio of $2.4 billion
by end of 2004

Launched Correspondent Lending
and Sub-Prime Wholesale Divisions

Announced 2004
record funded
volume for Company
of $13 billion for 2004

Paid first regular
quarterly
common stock
dividend of $0.48
per share

Securitized $665
million in April ’05

Mortgage Origination Platform (TRS)

Loan Production Growth

Source: Mortgage Bankers Association and MortgageIT

*Based on high-end of Company guidance of projected loan funding volume of between $7.0 billion to $7.5 billion

Industry Quarterly Y/Y Growth (%)

MortgageIT Quarterly Y/Y Growth (%)

National Origination Platform

> $100 mm

$50 mm to $100 mm

$25 mm to $50 mm

< $25 mm

1Q:05 Originations

W (5)

W (3)

W (2)

R (11)

W (2)

R (2)

R W

R (2)

Balanced Footprint Mitigates Risk

Origination Mix

Balanced, Diversified Lending Maximizes Adaptability

Conforming

Government

Jumbo

Home Equity/Seconds

Non-Prime

Alt A

Correspondent

Retail

Wholesale

Non-Prime

Wholesale

Prime

Based on 2Q:05 Origination Mix

ARM Funding Volume

Significant Growth in ARM Originations Drives Portfolio

MortgageIT REIT Portfolio

High Quality Portfolio

91% owner occupied

Average loan size of $289K

No loans over $1 million

Loans originated in 47 states

Averages based on original balances and characteristics of 6 MHL securitizations through August 2005

Our strategy is to build a low credit loss portfolio capable of providing stable earnings
and reliable cash flow available for dividend

WA FICO of 732

WA LTV of 74%

All first lien loans

46% fully documented

Securitization Characteristics

(1) Original balances and characteristics

2005-4

2005-3

2005-2

2005-1

2004-2

2004-1

Aggregate Size ($MM)

721

722

678

1,017

635

811

Avg. Loan Balance ($M)

270

271

296

303

299

290

W.A. Coupon (%)

5.72

5.80

5.40

5.16

5.10

5.36

W.A. FICO

732

734

732

733

731

LTV (%)

75.3

74.8

72.8

72.7

74.5

% IO

88.7

85.7

78.1

76.2

79.2

% Cashout

25.7

28.0

33.1

29.6

25.4

24.5

% Investor

8.9

10.8

9.7

7.9

8.7

7.1

% Full Doc

32.0

38.6

48.1

58.1

51.7

44.3

% California

46.9

44.9

57.5

62.7

65.9

71.1

MHL Securitizations

(1)

Portfolio Loan Selection

Select the highest quality loans with the best risk-adjusted return attributes

Minimum Origination/Selection Criteria

1st lien residential mortgage loans

Self-originated with risk-based pricing

FICO >= 660

LTV generally <= 90% (95% for certain 1-2 unit purchase money loans under $450K)

Owner Occupied – if 2nd / investor, then LTV <= 85%

Max loan balance = $1.5 million, additional requirements apply

Subordinated financing allowed with additional restrictions

No loans to executives

Underwriting

Structure

Organization

Chief Lending Officer

Head of Credit and Product Development

National Underwriting Manager

Regional Credit Managers

Regional Approach

Strong knowledge of local real estate market and individual brokers

Regional Credit Managers provide support for individual underwriters

Underwriter performance tracked

Credit Approval Authority

Authority level based on experience

Three levels – Level I, II, III

Loan exception authorities:

Documentation based – Level II and above

Parameter exceptions (LTV, credit history, FICO) – Regional Credit Managers

Exceptions only allowed where line underwriter has reviewed loan data, appraisal and
borrower income

General Guidelines

Desktop underwriter and loan prospector used in conjunction with manual underwriting on
certain loan products

Parameters for score, mortgage history, ratios are overlaid on AUS decision

Credit Reports

Tri-merged reports

Stated loans use lower of middle credit score from all borrowers

Appraisals

Always underwritten by staff / contract underwriter using appraisal checklist

AVMs used to substantiate value in certain cases

Enhanced desk and field reviews used where AVM value varies to appraised value by >
15%

Field reviews used for certain high LTV no documentation products and select jumbo
loan products

Fraud Alert Systems used on all loans

Social security numbers verified

OFAC lists checked

24-month Chain of Title on every purchase

Documentation Standards

While we relax certain income and asset verification standards under our low-doc
programs, other qualification requirements and pricing are tightened to ensure an
adequate risk/reward mix.

If, during the underwriting of any stated loan, a conclusion can be drawn as to the
income of the borrower, then the loan must be changed and processed as a full
documentation loan

Program

Employment

Income

Assets

Ratios

Full/Alt Doc

2 yrs Verified

Verified

Calculated

SIVA

2 yrs Verified

Stated

Verified

Calculated

No Ratio

2 yrs Verified

Not Disclosed

Verified

Not Calculated

SISA

2 yrs Verified

Stated

Calculated

No Doc

Not Verified

Not Disclosed

Not Calculated

Interest Only Criteria

Qualifying ratios reduced

Qualifying payment is calculated using a higher anticipated interest rate for the end of the
second year

Term

6 month ARMs have a 10-year IO term

Alt A Hybrid ARMs have a 10-year IO term

Hybrid ARMs have a term tied to the fixed period

Quality Control

QC loan selection done by random statistical sampling of origination channels, brokers,
products or functional areas

Closed Loan Audit

Performed and reported monthly by third-party vendor (TENA)

Selection occurs within the first week after the month the loan closes with the review
completed by the following month (60-day window)

Re-verification of data material to the loan decision

Loans are rated as Significant, Moderate or Low Risk based on review of:

Compliance

Underwriting

Collateral Value & Clear Title

Adherence to Company Policies & Procedures

Enforceability of Closing Documents

Responses including corrective actions are due quarterly

Quarterly audit findings reporting to senior management

Compliance

All loans are reviewed by underwriting, closing and funding for compliance with federal and
state regulations

All mortgage loans must comply with all applicable federal, state and local laws and
regulations

Particular focus on the following regulations:

Truth in Lending (TILA)

Real Estate Settlement Procedures Act (RESPA)

Equal Credit Opportunity Act (ECOA)

Final Truth in Lending

Federal, State and Municipal High Cost and Anti-Predatory Laws

Home Ownership and Equity Protection Act (HOEPA, Section 32)

Loans violating federal, state or municipal high cost/anti-predatory lending laws will not be
originated

Company has adopted an internal 5% (subject to lower state and municipal thresholds) policy
limit on all total borrower charges and broker compensation