Eclipse Resources Corporation (NYSE:ECR)
Industry: Basic Materials

OFF LIST - 2830 consecutive market days: OFF LIST as of 03/10/2005 Through 11/14/2016

ECC Capital Corporation, incorporated on April 1, 2004, was formed by Encore Credit Corp. solely for the purpose of affecting a restructuring of Encore Credit Corp. that would facilitate an initial public offering and conversion to a real estate investment trust (REIT). As a REIT, the Company invests in residential mortgage loans financed by the issuance of non-recourse debt. On February 18, 2005, ECC Capital completed its initial public offering and conversion to a REIT. Encore Credit thereafter became a wholly owned subsidiary of ECC Capital. The Company, through its subsidiaries, operates a subprime mortgage finance company. Encore Credit originated approximately $9.1 billion of subprime residential mortgage loans during the year ended December 31, 2004. During 2004, the Company sold substantially all of its loan production to third parties or through securitization transactions structured as sales. As a REIT, ECC Capital will continue to originate mortgage loans through existing and new production channels. As such REIT, earnings that it distributes to stockholders will not be subject to income tax for federal or state purposes as long as the Company distributes at least 90% of its taxable earnings and satisfy certain other qualifying tests. ECC Capital's loan production operations and secondary marketing activities (loan sales to third parties) will be conducted through one or more taxable REIT subsidiaries (TRSs), which will be subject to taxes on their income at normal statutory rates. The Company's principal TRS will operate under the name of Encore Credit. ECC Capital underwrites each mortgage loan that it originates and it underwrites each mortgage loan purchased generally prior to the origination of that mortgage loan, in accordance with internal underwriting guidelines. In order to provide long-term financing for the mortgage loans it holds in its loan portfolio, ECC Capital expects to securitize substantially all of those loans through transactions that will generally be structured as financings for both tax and financial accounting purposes. In a securitization, the Company sells a pool of loans to a trust for cash purchase price and a certificate evidencing its residual or ownership interest in the trust. The trust raises the cash portion of the purchase price by selling securities secured by, or representing an interest in, loans in the trust. Through 2004, and up to the date of the Company's initial public offering, whole-loan sales were executed on a servicing-released basis, meaning that the loans were sold, together with the servicing rights, to the buyers of the loans. ECC Capital expects that it will continue to sell a portion of its loans on a servicing-released basis, primarily through Encore Credit, so that it can capture any gain on the sale of these loans and thereby grow its equity capital base.Encore Credit will generate income primarily from the sale of loans at a premium to the Company's weighted average origination costs (including overhead); net interest income, which is the difference between the interest income generated by the mortgage loans and ECC Capital's interest expense on the financing of its lending activities through warehouse and repurchase facilities during the time it holds the mortgages, and origination fee income. ECC Capital offers a variety of both hybrid/adjustable rate and fixed-rate loan products that are secured by a first or subordinate mortgage on a borrower's residence. The Company's principal loan products are hybrid/adjustable-rate subprime residential mortgage loans with a fixed-principal amount and term to maturity. The Company primarily originates subprime residential mortgage loans through its wholesale broker network solicited by account executives throughout the United States. ECC Capital has established loan programs and risk categories, which identify the types of loans that it originates. A majority of the Company's loan originations are underwritten using the Credit Score Advantage program. This program makes loans available to a gr

Current Quote*
Last: $2.220
Change: 0.100
Book: $Unk
Volume: 638,164

As Of: 08/18 16:00 ET
*Quotes delayed by 20min.

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