Friedman, Billings, Ramsey (FBR) Completes Sale of On-Balance Sheet Securitized Loan Portfolio

December 21, 2007 7:55 AM EST

Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) completed the sale of its on-balance sheet securitized loan portfolio. As a result of the sale, $3.1 billion of securitized loans held for sale and $3.1 billion of related securitization financing have been eliminated from the Company's balance sheet.

This sale will not have a material impact on the Company's consolidated operating results for the fourth quarter of 2007.

As of September 30, 2007, the Company held approximately $200 million of non-securitized non-prime mortgage loans (net of reserves) originated by First NLC Financial Services, LLC (FNLC). The Company has sold $153 million of these mortgage loans (net of reserves) generating proceeds of $135 million, which will result in the recognition of a realized loss of $18 million in the fourth quarter of 2007. The Company is currently negotiating the sale of the remaining $48 million.

The Company also expects to write-off goodwill of approximately $108 million in the fourth quarter of 2007.

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