In this press release, 2006 results are unaudited. Also, this press release contains certain ‘‘forward-looking statements,’’ within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s expected future business and financial performance, and often contain words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘will’’ or other similar words or expressions. Forward-looking statements, by their nature, address matters that are, to different degrees, uncertain and include, among other things, statements relating to the Company’s ability to fund a fully-leveraged, self-originated loan portfolio, its anticipated loan funding volume and the Company’s ability to pay dividends. These statements are based on the current economic environment and management's current expectations and beliefs, and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements are inherently subject to significant economic, competitive, and other contingencies that are beyond the control of management. The Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, MortgageIT, Inc.'s continued ability to originate new loans, including loans that the Company deems suitable for its securitization portfolio; changes in the capital markets, including changes in interest rates and/or credit spreads; and other risks detailed in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission (‘‘SEC’’) on March 15, 2006 and from time to time in the Company’s other SEC filings. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

MortgageIT Holdings and Subsidiaries

Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)


	March 31, 2006			December 31, 2005
ASSETS
Cash	$	55,079		$	36,757
Restricted cash		1,889			712
Marketable securities held to maturity		1,489			3,675
Portfolio ARM Loans
ARM loans collateralizing debt obligations, net		5,214,439			4,681,554
ARM loans held for securitization, net		0			282
Total Portfolio ARM Loans		5,214,439			4,681,836
Mortgage loans held for sale		2,856,370			3,378,197
Mortgage-backed securities-available for sale		23,211			23,357
Hedging instruments		72,659			54,472
Accounts receivable, net of allowance		148,752			146,043
Prepaids and other assets		46,933			31,262
Goodwill		11,639			11,639
Property and equipment, net		14,790			13,941
Total assets	$	8,447,250		$	8,381,891
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized debt obligations	$	4,992,895		$	4,485,197
Warehouse lines payable		2,689,694			3,177,990
Repurchase agreements		102,282			87,058
Hedging instruments		6,410			8,801
Junior subordinated debentures		128,871			77,324
Notes payable and other debt		30,000			15,000
Accounts payable, accrued expenses and other liabilities		138,598			176,619
Total liabilities		8,088,750			8,027,989
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock		292			289
Treasury stock		(1,178	)		(1,178	)
Additional paid-in capital		393,380			393,304
Unearned compensation – restricted stock		(5,060	)		(5,889	)
Accumulated other comprehensive income (loss)		28,732			13,225
Accumulated deficit		(57,666	)		(45,849	)
Total stockholders' equity		358,500			353,902
Total liabilities and stockholders' equity	$	8,447,250		$	8,381,891

Consolidated Statements of Operations (Unaudited)
(Dollars and shares in thousands, except per share data)


	Three Months Ended Mar 31,
	2006			2005
Revenues:
Gain on sale of mortgage loans	$	45,752		$	32,107
Brokerage revenues		6,438			6,398
Interest income		113,908			53,752
Interest expense		(104,981	)		(31,486	)
Net interest income		8,927			22,266
Realized and unrealized gain on hedging instruments		420			8,922
Other		238			263
Total revenues		61,775			69,956
Operating expenses:
Compensation and employee benefits		37,242			27,789
Processing expenses		23,918			10,363
General and administrative expenses		7,580			6,818
Rent		3,688			2,275
Marketing, loan acquisition and business		1,270			895
development
Professional fees		2,597			2,310
Depreciation and amortization		1,547			796
Total operating expenses		77,842			51,246
(Loss) income before income taxes		(16,067	)		18,710
Income taxes		(11,340	)		2,982
Net (loss) income		(4,727	)		15,728
Dividends on convertible redeemable preferred stock, accrued and unpaid		—			—
Net (loss) income attributable to common stockholders	$	(4,727	)	$	15,728
Earnings per Share:
Basic	$	(0.17	)	$	0.81
Diuted	$	(0.17	)	$	0.79
Number of Shares:
Basic		28,352			19,405
Diluted		28,352			19,846

Segment Financial Results for the First Quarter of 2006


(in thousands – except EPS)	Mortgage Banking						Portfolio				Consolidated
	Amount			EPS			Amount		EPS		Amount			EPS
After tax (loss)/earnings prior to elimination		(14,986	)		(0.53	)		8,902		0.31		(6,084	)		(0.22	)
Elimination⁽¹⁾		20			0.00			1,337		0.05		1,358			0.05
After tax (loss)/earnings net of elimination		(14,966	)		(0.53	)		10,239		0.36		(4,727	)		(0.17	)
Adjustment for after tax impact relating to FAS133⁽²⁾		0			0.00			742		0.03		742			0.03
Adjusted (Loss)/Earnings		(14,966	)		(0.53	)		10,981		0.39		(3,985	)		(0.14	)


(1)	Eliminates the economic impact of inter-company loan sales from the mortgage bank to the portfolio.


(2)	Adjusts previous gains and losses on derivative hedges reported by the Company (as a result of not qualifying under FAS 133) and the corresponding amortization associated with those gains and losses.

Operating Statistics Table


	Rolling five quarter information (Quarter ended)
	Mar 31, 2005			Jun 30, 2005			Sep 30, 2005			Dec 31, 2005			Mar 31, 2006
Mortgage Banking Metrics
Loan volume ($ millions)	$	4,340		$	6,389		$	9,249		$	9,244		$	7,195
% Purchase		51	%		56	%		48	%		47	%		44	%
% Refinance		49	%		44	%		52	%		53	%		56	%
% Funded in MortgageIT name (banked)		92	%		93	%		95	%		96	%		95	%
Held for sale warehouse balance (avg) ($ millions)	$	1,500		$	2,139		$	3,655		$	4,828		$	4,267
Warehouse weighted average coupon		6.33	%		5.87	%		5.24	%		5.59	%		5.60	%
Warehouse borrowing cost		3.33	%		3.74	%		4.36	%		4.95	%		5.31	%
Warehouse net interest margin		3.00	%		2.13	%		0.88	%		0.64	%		0.29	%
Number of production branches		51			53			58			54			49
Gain on sale on total loans sold to third parties (Bps)		105			114			93			71			71
Gain on sale prime loans sold to third parties (Bps)		97			93			80			70			92
Gain on sale sub-prime loans sold to third parties (Bps)		186			227			175			75			(232	)
Gain on sale on loans transferred to portfolio (Bps)		87			70			78			66			NM
Margin on loans brokered (Bps)		133			116			128			122			135
Loan Portfolio Metrics
Average loan assets in portfolio ($ millions)	$	2,786		$	3,404		$	4,197		$	4,804		$	4,939
Weighted average coupon of loans		5.12	%		5.17	%		5.37	%		5.41	%		5.48	%
Scheduled loan basis amortization		0.21	%		0.22	%		0.28	%		0.26	%		0.18	%
Incremental loan basis amortization due to higher prepayment rates		—	%		0.05	%		0.08	%		0.00	%		0.00	%
Net weighted average coupon		4.91	%		4.90	%		5.01	%		5.15	%		5.30	%
Interest expense (net of hedging)		3.07	%		3.62	%		3.93	%		4.19	%		4.47	%
FAS133 adjustment		—	%		-0.17	%		-0.14	%		-0.10	%		-0.06	%
Adjusted net interest margin		1.84	%		1.45	%		1.22	%		1.05	%		0.89	%
General and administrative (includes servicing expense)		0.41	%		0.44	%		0.34	%		0.07	%		0.15	%
Credit provision		0.09	%		0.09	%		0.09	%		0.09	%		0.03	%
Adjusted loan portfolio return on assets		1.34	%		0.92	%		0.79	%		0.90	%		0.71	%
Adjusted loan portfolio return on assets prior to increased prepayments		1.34	%		0.97	%		0.87	%		0.90	%		0.71	%
Credit Reserve for HFI Portfolio (Based on Average Balance)
Credit reserve balance		0.047	%		0.062	%		0.073	%		0.086	%		0.090	%
60 to 89 days past due		0.06	%		0.11	%		0.26	%		0.26	%		0.25	%
Over 90 days past due		—	%		—	%		0.04	%		0.12	%		0.03	%
Foreclosure		0.04	%		0.17	%		0.13	%		0.09	%		0.24	%
Total past due and foreclosure		0.10	%		0.28	%		0.43	%		0.47	%		0.52	%


	•	Reports GAAP loss of $0.17 per diluted share, which includes a $0.45 per share charge pertaining to national wholesale sub-prime exit


	•	Funds $7.2 billion of loans in the first quarter representing 66% year-over-year growth; expects $7.75 to $8.25 billion in second quarter 2006 funding volume


	•	Guides to an increased dividend of $0.30 for second quarter


	•	Expects mortgage banking business to return to profitability in the second quarter


	•	For the first quarter ended March 31, 2006, MortgageIT, Inc., the Company’s mortgage banking subsidiary, had a pre-tax loss of $26.3 million. After-tax loss totaled $15.0 million or $0.53 per share. The national wholesale sub-prime exit, which is now complete, resulted in a charge to earnings of $0.45 per share or approximately $12.8 million after tax. At March 31, 2006, the Company had an immaterial amount of wholesale sub-prime inventory on its balance sheet and had reduced its wholesale sub-prime staff by approximately 96% from year end levels.


	•	The Company funded $7.2 billion in mortgage originations in the first quarter of 2006. This represents a 66% increase from the year ago first quarter. The Company funded slightly more than $100 million of sub-prime loans in the first quarter of 2006.


	•	Prime gain on sale margin during the first quarter was approximately 92 basis points (bps). This is a 22 bps increase from the fourth quarter of 2005. Sub-prime gain on sale margin for the first quarter was approximately negative 232 bps as the Company focused on selling remaining sub-prime inventory consistent with its efforts to exit the national wholesale sub-prime channel. Combined gain on sale margin for loans sold to third parties during the quarter ended March 31, 2006 was approximately 71 bps.


	•	The Company’s investment portfolio earned $11.0 million or $0.39 per share in adjusted earnings during the first quarter of 2006.


	•	As of March 31, 2006, the Company had an investment portfolio of approximately $5.2 billion, plus approximately $23.2 million of self-originated mortgage backed securities. The portfolio had an average balance of $4.9 billion during the first quarter of 2006. During the first quarter of 2006, the Company securitized approximately $750.0 million of self-originated ARM loans.


	•	Adjusted net interest margin on the loan portfolio was 89 bps during the first quarter of 2006, down from 105 bps in the fourth quarter of 2005. Adjusted return on assets (‘‘ROA’’) on the portfolio was 71 bps in the first quarter, down from 90 bps in the fourth quarter of 2005.


	•	The Company expects its mortgage banking business to return to profitability in the second quarter of 2006. It expects prime gain on sale margins to significantly exceed first quarter 2006 levels.


	•	The Company expects to pay a second quarter dividend of $0.30 per share.


	•	The Company expects the average balance of its investment portfolio to be approximately $5.0 billion during the second quarter of 2006.


	•	The Company expects to report loan funding volume of approximately $7.75 to $8.25 billion in the second quarter of 2006, which would represent an increase of 21% to 29% over the second quarter of 2005. Year-ago fundings included approximately $791 million of wholesale sub-prime originations.