In order to capitalize on the unique market opportunity that exists at this time, Arbor has created a custom-built infrastructure and assembled an executive and senior management team with the critical skills, expertise and comprehensive industry relationships necessary to achieve its business objectives.

A Proven Management Team Assembled for Specific Investment Opportunity

• The members of Arbor’s executive and senior management team average 20+ years of experience in real estate, investment, capital markets, loan origination and asset management. Arbor is confident that it is well positioned to make selective investment decisions while effectively monitoring and managing the credit risk profile of its investment portfolio.

Exceptional Market Opportunity

• Loose underwriting standards and the expansion of subprime and Alt-A programs and a lack of investor due diligence led to the substantial deterioration of loan quality during the housing boom.
• U.S. homes stopped appreciating at the end of 2007, leading to a loss of borrower equity and the collapse of the subprime borrower.
• Approximately $2.5 trillion subprime and Alt-A loans were originated from 2004 to 2006.
• $300 billion in estimated adjustable rate mortgage (ARM) resets are expected over the next 30 months.

Experienced Asset Manager Strengthened by In-House Special Servicer

• Arbor Residential Mortgage is strengthened and distinguished by its in-house, boutique special servicer, which has strategic expertise and a proven track record of success in the servicing of high-delinquency portfolios. The servicer’s highly qualified group of asset managers average 15-18 years industry experience through various market cycles.