N@N

Annaly Capital Management, Inc. Announces the Formation of Shannon Funding LLC, Which Will Provide Funding to Mortgage Originat

^{Published on 2010-11-16 13:15:53 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Annaly Capital Management, Inc. (NYSE: NLY) today announced the formation of Shannon Funding LLC, a wholly-owned subsidiary that intends to provide warehouse financing and other services to residential mortgage originators in the United States. Shannon will be led by Bruce E. Watterson, a veteran mortgage finance executive who most recently was a managing director at LPS Capital Markets, a division of Lender Processing Services. Shannon, which will operate out of offices in Bellevue, Washington, plans to begin operations in the first quarter of 2011.

Michael A.J. Farrell, Chairman, CEO and President of Annaly commented on the new initiative: aNow more than ever, new mortgage origination activity is dominated by the handful of large money center banks with ready access to capital. Small- and medium-sized mortgage companies with good credit cultures and successful track records are challenged to source warehouse funding in this environment. Shannon plans to provide funding to these smaller participants in order to help them generate well-underwritten mortgage product. As opportunities present themselves in the future, Shannon will expand its strategy and operations into additional markets.a

Mr. Watterson has over 25 years of experience in mortgage banking, diligence, servicing and technology. He was founder of Watterson-Prime, LLC which provided due diligence, portfolio stratification and other consulting services to buyers and sellers of financial residential and commercial mortgage assets, and also launched Watterson-Prime Software, Inc., a software and technology company serving the asset-backed finance industry. Mr. Wattersona™s prior experience includes senior positions in the mortgage, hedging and structuring groups at First Boston and Shearson Lehman Hutton, as well as head of the due diligence practice at PricewaterhouseCoopers, LLP. Mr. Watterson received his B.A. degree at Miami University in Oxford, Ohio.

Annaly manages assets on behalf of institutional and individual investors worldwide. The Company's principal business objective is to generate net income for distribution to investors from its Investment Securities and from dividends it receives from its subsidiaries. Annaly is a Maryland corporation that has elected to be taxed as a real estate investment trust ("REIT").

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "continue," or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability of mortgage-backed securities for purchase, the availability of financing and, if available, the terms of any financing, changes in the market value of our assets, changes in business conditions and the general economy, changes in government regulations affecting our business, our ability to maintain our qualification as a REIT for federal income tax purposes, risks associated with the broker-dealer business of our subsidiary, and risks associated with the investment advisory business of our subsidiaries, including the removal by clients of assets they manage, their regulatory requirements and competition in the investment advisory business. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.