Saxon Capital Group Inc. · OTC:SCGX
Saxon Capital — Investor Presentation (February 2006)
20 slides from Saxon Capital's investor presentation, Feb 7, 2006
Slide 1: Investor Presentation
EXHIBIT 99.1 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information contained herein, reflecting our future plans and strategies, may constitute “forward-looking statements” that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect
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Slide 4: Who We Are
Who We Are Taxable REIT Qualified REIT Subsidiaries Subsidiaries Production Servicing Portfolio n Began in 1989 n Began in 1963 n Began in 1989, with current portfolio beginning in 2001 n $2.4 billion in production n $26.4 billion servicing portfolio, including $20.2 billion of n $6.2 billion owned
Slide 5: What We Do
What We Do n We are a REIT that originates, purchases, securitizes and Customer and origination profile (As of 9/30/05) services non-conforming, subprime residential mortgage loans n Average principal balance $144,000 per loan n Mortgage loan production n Originate and purchase loans through wholesa
Slide 6: The Key Drivers of Success in Subprime Mortgage
The Key Drivers of Success in Subprime Mortgage Saxon Perspective on Factors Driving Profitability Efficient Low Cost Improved Credit Profitability & Cost to Originate to Service Liquidity Losses Success Uninterrupted access Saxon restructured its to the securitization Saxon’s upfront origination pl
Slide 7: Competitive Landscape
Competitive Landscape Mortgage Production Mortgage Servicing n $840 billion market * n Key Competitors n Ocwen, Litton Loan Servicing, Countrywide and Chase n Key Competitors Manhattan Mortgage n Ameriquest, New Century, Countrywide and Option One n Intense price competition began among top competit
Slide 8: Trends in the industry
Trends in the industry Trends in the Subprime Mortgage Industry What Saxon Has Done n Interest rates create cyclicality n Saxon has not sacrificed underwriting discipline and has maintained pricing discipline n Less focus on credit and underwriting n Continued upfront investment in credit and fraud
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Slide 10: Saxon's Proven Track Record
Saxon’s Proven Track Record Total Net Revenue (In Millions) Net Servicing Income (In Millions) Shareholders’ Equity Return on Average Equity 7
Slide 11: Saxon Consistently Beats Benchmark in Credit Performance
Saxon Consistently Beats Benchmark in Credit Performance Delinquency By FICO Band (Vintage 2004)1 Difference: 8.65% (1.55%) 1.46% 2.93% 1.52% 3.34% 1.92% 2.10% 0.75% ;0.69% 0.50% 1 60+ day delinquency using OTS method Note: Benchmark securities consist of ABFC, ABS, ACE, Ameriquest, ARC, Argent, Bea
Slide 12: Production Overview
Production Overview Production ($ Millions) Change in Strategy in 2005 n Restructured retail business platform n Successfully merged wholesale and retail operations n Completed implementation of score based lending n Increased volume per FTE across all channels n Significant progress in upgrading pr
Slide 13: Production by Credit Score
Production by Credit Score Credit Score Migration (As of September 30, 2005) 10
Slide 14: Portfolio Geographic Dispersion
Portfolio Geographic Dispersion Note: As of September 30, 2005 11
Slide 15: Mortgage Loan Servicing
Mortgage Loan Servicing Serviced Portfolio ($ Billions) n Total portfolio growth 31% during 2005 n Portfolio performance n Delinquency 60+ 6.26%1 77% n Loss Severity 36.99% n Cost to service 17 bps vs. 34 bps for Ocwen2 n Established second servicing site n 39 training hours per FTE 23% 1 MBA method
Slide 16: Owned Mortgage Loan Portfolio
Owned Mortgage Loan Portfolio ($ Billions) 13
Slide 17: Performance: Static Pool Delinquency and Losses
Performance: Static Pool Delinquency and Losses Static Pool Delinquency By Year of Origination Static Pool Losses By Year of Origination 2000 1999 2000 1998 2001 2001 1999 1997 2002 1996 2002 2003 1998 2004 1996-97 2003 2005 2004 Outstanding Portfolio Balance by Year: Total Cumulative Losses: 1996 –
Slide 18: Loss Severity
Loss Severity 520 650 668 1,022 605 732 1,182 1,119 597 633 444 259 216 133 86 70 65 22 2 5 Loans in a security 1999- 1999- 1999- 2000- 2000- 2000- 2000- 2001- 2001- 2001- 2002- 2002- 2002- 2003- 2003- 2003- 2004- 2004- 2004- 2005- 02 03 05 01 02 03 04 01 02 03 01 02 03 01 02 03 01 02 03 02 Note: As
Slide 19: Summary
Summary Strong Servicing Existing Portfolio Platform Discipline Management n Saxon’s n Saxon has been n Saxon has a n Saxon has a culture management team building its servicing platform of discipline in has one of the on-balance sheet that is highly rated growth, credit, and strongest reputations po
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