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BEAUMONT SELECT CORP 8-K 2006 Documents found in this filing:
Exhibit 99.1
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[LOGO]
BOND INVESTOR PRESENTATION January 2006
Forward-Looking Statement
These materials contain forward-looking statements made pursuant to the
“safe harbor” provisions of the Private Securities Litigation Reform Act of
1995. The reader is cautioned that such
forward-looking statements are based on: • Information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.
• Important factors that could cause such differences are described in the Company’s periodic filings with the Securities and Exchange Commission, including the Company’s Form 10-K and quarterly reports on Form 10-Q.
The Company assumes no obligation to update forward looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.
Table of Contents
Corporate Overview
1 Corporate Organization
2 History
3 Profile
• Subsidiary of NYSE publicly traded company (NYSE: BMM);
• Strong & experienced executive management team;
• Nationwide originations with geographic diversification; Retail; Wholesale & Conduit;
• Originations for 2005: $6.7 Billion; 2004: $4.6 Billion; and 2003: $2.8 Billion; 2002: $1.2 Billion;
• $7.9 Billion Servicing Portfolio as of December 2005;
• Issued securitizations in the amount of $7.6 Billion - OPMAC (previously HMAC);
• 1,071 employees;
• Technology driven company. All origination channels incorporate integrated systems throughout operations with edits that insure compliance for regulatory and predatory lending requirements;
• $3.5 Billion in available credit lines to fund production;
Opteum Website: www.opteum.com (To access reporting, visit www.opteum.com, and proceed to the Investors page. Follow the instructions to obtain Login and Password). Bimini Website: www.biminireit.com
4 Origination Channels
[GRAPHIC]
5 Fiscal 2005 Production Summary
• Through December 31, 2005, Opteum Closed 6.7 Billion Dollars of Residential Mortgages
* Opteum no longer securitize Subprime products (starting with OPMAC 2005-2) or seconds (the last one in OPMAC 2005-2).
6 Production by Channel
Opteum Financial Services: Loan Production by Channel through December 31, 2005
[CHART]
* 2005 includes closed loan production for 13 months ended December 31st.
7 Product Mix – Retail
Opteum Financial Services: Retail Production by Product Year-to-Date through December 31, 2005
[CHART]
8 Product Mix – Wholesale
Opteum Financial Services: Wholesale Production by Product
[CHART]
9 Product Mix – Conduit
Opteum Financial Services: Conduit Production by Product
[CHART]
10 Warehouse Capacity
(1) Includes sublimit of $10.0 million for Servicing
11 [LOGO]
12 Opteum Products - Underwriting Overview
[LOGO]
• 6 Documentation Types: • Full Documentation • Stated Income / Verified Assets (SIVA) • No Income / Verified Assets (NIVA) • Stated Income / Stated Assets (SISA) • No Income / No Assets (NINA) • No Income / No Employment / Verified Assets (NINEVA)
• 40/30, 30 & 15 Year Fixed rate; 6 Month Libor; 2/28; 3/27; 5/25; 7/23 Hybrid ARM Products;
• 10-Yr. Interest Only option available on both Fixed and Adjustable Rate Loans (Not available on 40-Yr. Fixed); or 15-Yr. Fixed;
• Prepayment Penalties: Fixed Rate Products - 3 Yr. Hard or Soft; ARM Products – 1 to 5 Years (Hard Prepays & Soft Prepays offered);
• Borrower & Lender Paid Mortgage Insurance (LPMI): 80.01 - 85% LTV = 12%; 85.01- 90% LTV = 30%; 90.01 - 95% = 35%; 95.01% - 100% = 35% • LPMI Option I - UGI (See Matrix for LTVs) • LPMI Option II - PMI (See Matrix for LTVs)
13 • Qualifying Ratios (Including I/O) LTV / CLTV:
• Credit Score Requirements:
• Minimum credit score is 620 for Primary Wage Earner; • Loan Amounts > $1M require 680 credit score for all borrowers; • Second Homes & Investment. Properties with CLTV 95 - 100% require 680 credit score for all borrowers;
• Credit History:
• 2 year credit history required, with minimum 5 trades; 0 X 30 Mortgage Lates in last 12 months • 80% LTV & under; Minimum 3 trades; 2 must be rated traditional lines with 1 active in last 6 months; 0 x 30 Mortgage in last 12 months;
• New Home Buyer: Allowed under Full Doc & SIVA:
1) Full Doc: 620 credit score required for Primary Wage Earner; Reserves: < 1$MM – 2months PITI 2) SIVA: 660 credit score required for All Borrowers; Reserves: 4 months PITI required
14 • Revolving / Installment: Disregard all lates;
• Foreclosures: None in last 3 years. Loans > $1M, no BK/FC in last 7 years;
• Bankruptcies: Discharge 2 years with good re-established and/or re-affirmed credit. Minimum of 3 trades required;
• Appraisals: All loans require a full appraisal in compliance with Fannie / Freddie requirements & State requirements
• Appraisal Reviews:
• LTV 80.01–90% - Enhanced Desk Review; AVM’s CASA with score of 65% or higher; or HVE with an “ H” or “M” score; or 2055 Exterior Drive By
• LTV 90.01-95% - Enhanced Desk Review
• Loan Amounts greater than $500K and up to $750K, Owner Occupied or Second Homes with LTV <80% Enhanced Desk Review
15 Opteum Products - Underwriting Overview
• Appraisal Reviews (cont.)
• Loan Amounts $500,000–999,999 Requires Enhanced Field Review regardless of LTV • Loan Amounts => $1M requires 2 Full Appraisal ordered by Opteum or Conduit Sellers
16 Opteum Products - Underwriting Overview
• Purchase, Rate Term and Cash Out Transactions;
• 30-Year Fixed Rate and 2/28 and 3/27 Adjustable Rate mortgages;
• Prepayment penalties: 1 – 3 year hard prepay;
• Interest Only available on adjustable; O/O; 1 unit only;
• Credit grades:
17 Opteum Products - Underwriting Overview
• Credit History Trade Lines:
• 12 months mortgage / rental history required on all doc types;
• Full, Limited: LTV >90% or loans >$500K: 24 month credit history with minimum 2 trades paid as agreed, 1 with minimum 24 month history, 1 with minimum 6 months history;
• LTVs <90% or loans <$500K: Minimum 12 month history with 2 trades paid as agreed, 1 with 12 months history, and 1 with 6 months history;
• Stated: Minimum 24 month credit history with 3 trades paid as agreed, 1 with minimum 24 month credit history, 2 with minimum 6 months history.
• Minimum credit score: 580 based on Primary Wage Earner;
• Maximum Loan Amounts: $750,000;
18 Opteum Products - Underwriting Overview
• Maximum LTV: 95% / maximum CLTV 100%;
• Debt Ratios: 50%, will allow up to 55% debt to income ratio with one compensating factor;
• Mortgage Insurance: Not Required;
• Appraisal Review:
• For loan amounts >$500K: Enhanced Field Review
• Second Home; Non–Owners; Seller seconds, 3 – 4 Units; Subject to Enhanced Desk Review regardless of the LTV/CLTV
• Field Review may be ordered at the discretion of the underwriter and for all loans. AVMs are required for owner occupied; 1 & 2 Unit properties when LTV >80%.
19 Exception Process
The following exceptions on all products require management approval:
All exceptions are reported into Opteum Origination System. To access reporting, visit www.opteum.com, and proceed to the Investors page. Follow the instructions to obtain Login and Password.
20 Year-End Exceptions
21
22 Core Logic Marketing Reports
23 The Opteum Zone (OZ)
[LOGO]
OPTEUM’S AUTOMATED UNDERWRITING ENGINE
• Rules-based engine designed with logic, compensating factors, and risk grading
• OZ utilizes the S&P Levels for Risk Grading for loans originated to Five Star (Alt ‘A) and Five Star Expanded (A-)
• Release Stage 1 – Pre-Qual released May ‘05 to wholesale & conduit channel
• Release Stage 2 – Underwriting Decision Engine releasing in Spring ‘06
24 Opteum Mortgage Acceptance Corp. Securitizations Issued
Opteum Mortgage Acceptance Corp – Securitizations thru December 2005
* Opteum no longer securitize Subprime products (starting with OPMAC 2005-2) and seconds (the last one in OPMAC 2005-2).
25
* Opteum no longer securitize Subprime products (starting with OPMAC 2005-2) and seconds (the last one in OPMAC 2005-2).
26 Interest Only Analysis
* Through OPMAC 2005-4
27 Issuance Summary By Deal Name
28 Katrina Exposure
ALL STATES (1)
AL, LA, MS ONLY
“All states” are the zipcodes issued by FEMA
29 Collateral Detail - thru December 2005
30 Security Performance
* Information provided as of December 2005
For more Performance information, visit www.opteum.com ( click on “Corporate” on the top menu; choose “Investors” from the left nav bars; click on “HMAC-OPTEMAC Performance”; and sign-up/register to obtain log-in access ).
31 Senior Management Bios
Senior Management Bios
[GRAPHIC]
Jeff Zimmer Chairman, Chief Executive Officer, President and Founder Bimini Mortgage Management
Jeffrey J. Zimmer is our Chairman, Chief Executive Officer, President and one of our founders. He was most recently a Managing Director in the Mortgage-Backed and Asset Backed Department at RBS/Greenwich Capital Markets. From 1990 through 2003, he held various positions in the mortgage-backed department at Greenwich Capital. While there, Mr. Zimmer worked closely with some of the nation’s largest mortgage banks, hedge funds, and investment management firms on various mortgage-backed securities investments.
Mr. Zimmer has sold and researched almost every type of mortgage-backed security in his 20 years in the mortgage business. He has negotiated terms on and participated in the completion of dozens of new underwritten public and privately placed mortgage-backed deals for customers of Greenwich Capital. Mr. Zimmer was employed at Drexel Burnham Lambert in the institutional mortgage-backed sales area from 1984 until 1990. He received his MBA in finance from Babson College in 1983 and a BA in economics and speech communication from Denison University in 1980.
32 [GRAPHIC]
Peter Norden President and Chief Executive Officer Opteum Financial Services
Senior Executive Vice President Bimini Mortgage Management
Peter R. Norden has a long established track record in the mortgage banking industry. In 1975, he began his career as a senior auditor for Newark, N.J.-based Touche Ross and Company, where he specialized in mortgage banking. In 1988, his path led him to acquire Olde Town Mortgage Company, where he served as the company’s CEO.
That same year he and Martin J. Levine, President of First Builders Financial Corp., merged their respective companies to form First Town Mortgage Corporation. Norden served as the President and Chief Executive Officer of First Town until its purchase in March 1999 by Chase Manhattan Mortgage Corporation, and was appointed Executive Consultant. Norden then co-founded Homestar Mortgage Services, LLC in 1999, which went on to become Opteum Financial Services in December of 2004.
Norden serves on the Fannie Mae National CEO Advisory Board, the GMAC/RFC National Advisory Board and is the past President of the Mortgage Bankers Association of New Jersey.
33 [GRAPHIC]
Robert E. Cauley Chief Investment Officer, Chief Financial Officer and Secretary Bimini Mortgage Management
Robert E. Cauley is our Chief Investment Officer, Chief Financial Officer, Secretary and one of our founders. He was previously Vice President, Portfolio Manager at Federated Investment Management Company in Pittsburgh, Pennsylvania where from 1996 until September 2003 he was also a lead portfolio manager, co-manager, or assistant portfolio manager of $4.25 billion (base capital, unlevered amount) in mortgage and asset backed securities funds. From 1994 to 1996, he was an associate at Lehman Brothers in the asset-backed structuring group.
From 1992 to 1994 he was a credit analyst in the highly levered firms group and the aerospace group at Barclay’s Bank. Mr. Cauley has invested in, researched, or structured almost every type of mortgage-backed security. Mr. Cauley, who is a CFA and a CPA, received his MBA in finance and economics from Carnegie Mellon University and his BA in accounting from California State University, Fullerton. Mr. Cauley served in the United States Marine Corps for four years.
34 [GRAPHIC]
Martin J. Levine Executive Vice President and Chief Operations Officer Opteum Financial Services
Martin J. Levine, a Certified Public Accountant, has an extensive background with major firms including Touche Ross and Company, Coopers and Lybrand, Kenneth Leventhal and Company and Pan American Properties. In 1987, he launched First Builders Financial Corporation, where he served as President until the company’s merger with Olde Towne Mortgage in 1989 to form First Town Mortgage Corporation. He served as Executive Vice President and Chief Operations Officer of First Town until its purchase in 1999 by Chase Manhattan Mortgage Corporation.
After the transition to Chase Manhattan, Levine co-founded Homestar Mortgage along with Peter R. Norden. Levine is a member of the American Institute of Certified Public Accountants, the Mortgage Bankers Association and the New Jersey Home-builders Association.
35 [GRAPHIC]
Rick E. Floyd Executive Vice President and National Production Manager Opteum Financial Services
Rick E. Floyd joined Opteum Financial Services in 2001 (under the Homestar Mortgage Services name). As a partner operating in the capacity of Executive Vice President / National Production Manager, he is responsible for managing production for the Opteum Retail and Wholesale origination channels of business throughout the nation. He also participates in the oversight in management of the company’s conduit operation.
His career began in the Banking Industry in the management and credit divisions at Georgia Federal Bank in Atlanta, GA. By 1989, he had moved to First Union National Bank in charge of business development for the Atlanta area. In 1992, he joined HomeSouth Mortgage Corporation as an Account Executive, later serving as production manager for the state of Georgia. He remained at HomeSouth during buyouts by First Town Mortgage and Chase Manhattan Mortgage, and was later appointed Georgia Regional Manager responsible for sales and operations.
In 2000, he joined HomeBanc Mortgage Corporation, where he was responsible for launching and overseeing the company’s Builder Services Group.
Floyd is a member of the board of governors for the Mortgage Bankers Association of Georgia, currently serving as secretary and as a member of the association’s ethics committee. He is also past President of the Atlanta Chapter for the Mortgage Bankers Association.
36 [GRAPHIC]
Timothy P. O’Neill Chief Accounting Officer Opteum Financial Services
Tim O’Neill is a Certified Public Accountant who has a wide range of experience in the financial world. He began his career working for public accounting firms and an international manufacturer of art supplies. Eventually, he moved on to a real estate management and brokerage firm where he supervised everything from the payroll department to the creation and installation of a new general ledger and accounts payable system.
In 1991, Tim moved on to First Town Mortgage Corporation where his duties included preparing monthly and annual financial statements and daily cash management, among many other responsibilities. He served as Senior Vice President and Chief Financial Officer of First Town until its purchase in 1999 by Chase Manhattan Mortgage. Later the same year, he joined Peter R. Norden and Martin J. Levine at Homestar Mortgage Services, LLC where he continues as Opteum’s Senior Vice President and Chief Accounting Officer. Tim is a member of the American Institute of Certified Public Accountants and the NYSSCPA.
37 [GRAPHIC]
Jeff Pancer Senior Vice President – Capital Markets Opteum Financial Services
Jeff Pancer has been with Opteum since June 1999 (under the Homestar Mortgage Services name). As Senior VP – Secondary Marketing, he is responsible for hedging mortgage pipelines, providing daily pricing of all mortgage products and oversee MBS allocations department.
Prior to Opteum, Pancer was VP – Secondary Marketing with First Town Mortgage Corporation from 1997 and continued in the same capacity through the acquisition of Chase Manhattan Mortgage Corporation.
Pancer’s career path has included Dime Savings Bank, F.S.B., as AVP – Risk Analysis; First Fidelity Bank, N.A., as AVP – Secondary Marketing Trader; and Anchor Mortgage Services, Inc., as Mortgage Officer and Assistant Secretary.
38 Senior Management Bios
[GRAPHIC]
Mary Glass-Schannault Managing Director of Structured Finance and Senior Vice President Opteum Financial Services
Mary Glass-Schannault has been with Opteum since October 2002 (formerly Homestar Mortgage Services). Ms. Schaunnault is recognized in the mortgage industry for being innovative and knowledgeable with more than 30 years experience in all phases of residential and commercial lending. Her major accomplishments have included writing the credit philosophy for the first Alternative A Products in 1993, and was instrumental in developing the secondary market for structured finance transactions with establishing risk-based pricing and credit grading. Upon the success of the Alt A Products, she successfully wrote other additional alternative mortgage products with a common sense approach to underwriting credit risk.
Ms. Schannault most recently served as a Founder and Principal Executive Officer of the Impac Mortgage Holdings and Impac Commercial Holdings, until August 1999; Executive Vice President, Managing Director, Impac Mortgage Holdings since its formation in 1995; Senior Vice President and Managing Director of ICII from 1992 to1995. Prior to this, Ms. Schannault held various similar positions dating back to 1971.
Responsible for the negotiation and management of Structured Finance including Remic and Asset-backed securitizations, whole loan transactions in excess of $20 billion dollars for both residential and commercial loans, Chief Credit Officer, Operations Manager of Product Development and Administration, Underwriting, Quality Control, Seller Administration, ALCO committee member for both residential and commercial assets.
39 [GRAPHIC]
Grace Currid Senior Vice President and Chief Credit Officer Opteum Financial Services
Grace Currid serves as Senior Vice President and Chief Credit Officer. She is responsible for managing all aspects of Opteum’s lending and credit policies and procedures. As part of this responsibility, she also manages the Quality Assurance division within Opteum. Prior to her position as the Chief Credit Officer, she was the National Operations Manager, responsible for all aspects of the loan file from processing through loan closing. Ms Currid joined Opteum (formerly Homestar), in 2001.
As a recognized industry leader, she is actively involved with the Mortgage Bankers Association of New Jersey, a Board of Governor and has also chaired multiple committees. Additionally, Ms. Currid is an active member of FNMA’s National Underwriting Advisory Board and previously has been an instructor for the American Bankers Association School of Mortgage Lending.
Prior to Opteum, she has held senior management roles with both Chase Manhattan Mortgage, Citicorp Mortgage and Mortgage.com.
Prior responsibilities included Underwriting Manager, Regional Credit Officer, Staff Appraiser Manager and Manager of technology implementation.
40 [GRAPHIC]
Bela M Donine Senior Vice President and Chief Credit Officer – Conduit Opteum Funding
Prior to joining Opteum Funding (formerly Homestar), Ms. Donine was most recently the Senior Vice President - Underwriting / Credit and Chief Credit Officer for Impac Funding Corporation since its inception in 1995. In addition, she served on Executive Committee, Chaired Loan Committee, and served on the following: Product Committee, ALCO, IT Steering Committee, IDASL & IDASLg2 Steering Committee and the Homeland Security Committee.
Prior to Impac, Ms. Donine was Vice President - Underwriting / Credit for Imperial Credit Industries (ICI) since 1993, which later formed the Impac REIT.
Her experience includes ten years with The Associates and Ford Consumer Finance, where she was Vice President -Underwriting. She is also a member of the Mortgage Bankers Association.
41 Opteum Product Matrices
42
Owner Occupied
2nd Home
Investment Property
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