Bayview Asset Management Revenue and Competitors

Bayview utilizes the securitization market as its a source of long term financing for mortgage loan assets. We have invested significant resources into building a world-class securitization program with high-end in-house structured finance capabilities. Since 1998, Bayview has issued over $7.5 billion of AAA through BBB-rated asset backed securities in the 144A investor market, and over that period we have seen our investor base grow from mostly domestic money managers to today's blend of international and domestic banks, conduits, insurance companies, and money managers. In addition to providing a source of committed funding to our company, our securitization program focuses on providing long-term value to our investors through: : Maximum information transparency at issuance to investors, ratings agencies, and dealers (including updated appraisals, credit reports, and payment histories); : Intensive on-going surveillance of deals and dissemination of performance data; : Predictable collateral performance driven by loan seasoning and by very high levels of diversification; : An increasing number of Wall Street dealers providing secondary trading support; and : The ability for investors to receive priority response from management to any questions regarding any of our securities. Bayview has issued both fixed and floating rate securities, and both term and innovative revolving transactions that are essentially securitized warehouse lines. While Bayview, as owner of the equity classes behind its securitizations, appoints our special servicer InterBay Funding, to special service any seriously delinquent loans, we have historically sold our primary servicing to M&T Mortgage Corp. From the investor's perspective, having the mortgage subsidiary of a $30 billion bank responsible for the primary servicing and advancing obligations to the Trusts is a significant benefit associated with Bayview's deals. In an ongoing effort to disseminate maximum information about Bayview and its securitizations, the Structured Finance group publishes a Quarterly Securities Review ("QSR") that is distributed over our company website as well as mailed to over 100 of our investors and dealers. This publication provides valuable statistical data to Bayview investors regarding previously issued securities, as well as themortgage loan assets collateralizing the transactions. In addition to the structuring and management of Bayview asset backed securities, the Structured Finance team also manages Bayview's Micro Securitization Program ("MSP"). The MSP involves Bayview structuring and purchasing a senior asset backed security from a pool of loans originated and/or owned by a third party client. Since 2000, Bayview has completed $400 million of these transactions (representing 18 separate securities), many with repeat issuers. This financing alternative represents an attractive source of funding for many smaller financial institutions that have concentrated loan pools and/or cannot directly access the securitization market in a cost-effective manner.