Slide 1: Saxon Capital, Inc. January 30, 2006
Saxon Capital, Inc. January 30, 2006
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
Slide 3: Information & Where to Find It
INFORMATION & WHERE TO FIND IT q Corporate presentations, company financials, corporate SEC filings and other useful links can be found at www.saxonmortgage.com ( click on the Investor Relations link). q Underwriting guidelines, matrices and product profiles can be found at www.esaxon.com/wholesale/
Slide 4: Saxon Companies
SAXON COMPANIES A nationally recognized wholesale and correspondent mortgage lending company Trade name under which Saxon Mortgage, Inc. conducts retail lending business, through a network of regional lending centers and centralized lending platforms. A premier mortgage servicing company Saxon Capit
Slide 5: Saxon Strategy
SAXON STRATEGY q Saxon is building a high-quality non-conforming mortgage loan portfolio • Portfolio accounting (no on-balance-sheet residual valuation) • Holder of the first loss/residual risk (below BBB– credit risk) • Proactively manage the credit risk through our “Life of the Loan Credit Risk Ma
Slide 6: Returns and earnings per share
Retumon Esty Dikted EPS ids $288 208% se48 106 102% $124 soa 022) | | | 2 L _-pl zoortas-as) 2002 2008 200g ¥T0.2005 aim ane om vr zOns 25501 fanany sressae srsasus reas nase tessa tases Tete ane 0s awe yTOA00 a a sat mane reamae * J2Nu Saxon Capital, Inc
Slide 7: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET
Slide 8: Portfolio Summary
PORTFOLIO SUMMARY Owned Portfolio Growth Servicing Portfolio Volume & Channel Mix State Concentration $20.2B = 77% $6.2B = 23%
Slide 9: Quarterly Production Statistics
QUARTERLY PRODUCTION STATISTICS
Slide 10: 2005 SAST Collateral Summary
2005 SAST COLLATERAL SUMMARY
Slide 11: Credit Score Migration
CREDIT SCORE MIGRATION Saxon began classifying its production by credit score beginning with quarter ended 6/30/2004.
Slide 12: Static Pool Delinquency
STATIC POOL DELINQUENCEY Outstanding Portfolio Balance by Year: 1996 – 2000 = 8.0% 2003 = 14.8% 2001 = 4.8% 2004 = 33.6% 2002 = 7.3% 2005 = 31.5%
Slide 13: Static Pool Losses by Funded Year
STATIC POOL LOSSES BY FUNDED YEAR
Slide 14: Historical Loss Severity
HISTORICAL LOSS SEVERITY Divestiture from Dominion
Slide 15: Underwriting
UNDERWRITING q Underwriting • operations centers – VA, TX, CA • Automated U/W system • Automated review for borrower fraud using Appintell’s DISSCO system • Automated review of property valuation using Appintell’s VALVERIFY system • Automated review of appraisers against bad appraiser list • Full fi
Slide 16: Quality Control
QUALITY CONTROL q Post Funding Quality Control • Adversely selects 10+% of closed loans submitted for purchase based upon LTV ratio, seller, geographic location, product and collateral • Use a statistically based software, Cogent, which allows an adverse selection while maintaining a statistical sam
Slide 17: Summary
Strong Management Existing Portfolio Servicing Platform Discipline SUMMARY • SAX has a culture of discipline in growth, credit, and servicing. • Creating assets for our balance sheet and managing a REIT require similar discipline. • SAX has a servicing platform that is highly rated and scalable. • S