American Home Mortgage Investment Corp.

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1 2005 Annual Report American Home Mortgage Investment Corp. Building Our Portfolio Building Our Future

2 Dear Stockholders: During the year 2005, our company continued to build its businesses. In particular, we continued to grow our investment portfolio, our loan origination capability and our book of loans serviced. While our 2005 financial results did not increase as much as anticipated when compared to 2004, our accomplishments this year include growing our earnings per share, increasing our quarterly dividend and enhancing our book value per share. Today our quarterly dividend and book value per share have both reached record levels. In the third quarter of 2005, we made an important change to the way we structure securities. The change causes newly originated loans retained for our investment portfolio to be carried at their cost rather than their higher fair value. As a result, newly originated loans retained in our investment portfolio since the third quarter have been earning a relatively high yield. A central strategy for our company is to deploy more of our capital into self-originated loans carried at their cost as a means to grow our portfolio earnings and return on equity. In 2005, our overall portfolio grew to $14.1 billion compared to $6.0 billion at the end of We continue to attempt to reduce the risks inherent in our portfolio. In particular, we continue to pursue a matched book with the duration of our portfolio assets near equal to the duration, net of hedges, of our portfolio liabilities. We also seek to mitigate risk by holding loans with more predictable prepayment characteristics, such as loans with prepayment penalties, and by purchasing supplemental credit insurance to reduce the risks posed by borrower defaults. The year 2005 was highly successful for our mortgage origination business. During 2005, our originations were $45.3 billion compared to $23.1 billion in Our higher originations were the result of market share gains, as our market share in 2005 reached 1.60% compared to 0.79% in Growth in our origination business came from the expansion of our retail and wholesale lending capabilities, and the launching of our correspondent lending channel. Growth also stemmed from our ongoing program to acquire, through purchase or merger, established origination franchises at reasonable costs. In 2005, we completed four such purchases, including our acquisition of the retail branches and credit union affinity business of Irwin Mortgage Corporation, the acquisition of the retail, wholesale and correspondent divisions of Waterfield Financial Corporation and the purchase of the retail divisions of HomeVest Mortgage Corporation and Directors Residential Lending, Inc. The principal balance of loans serviced by our servicing business increased to $30.7 billion at the end of 2005 compared to $16.8 billion at the end of In 2005, we also launched a portfolio defense strategy to enhance our recapture of borrowers in our servicing book who plan to refinance. We also established a more robust cross-selling initiative that includes offering insurance and other mortgage-related products to our servicing customers. In closing, I would like to thank our employees, officers and Board of Directors for their continued hard work and dedication. I would also like to thank you, our stockholders, for your continued confidence and support. Sincerely yours, Michael Strauss Chairman and Chief Executive Officer

3 Building Our Portfolio Building Our Future Tax-Advantaged REIT Mortgage Holdings The Company holds a leveraged portfolio of mortgage assets for net interest income. A growing portion of the portfolio is self-originated by the Company s origination business, and is serviced by its servicing business. The Company projects that by self-originating its holdings, it will be able to add to its portfolio at a reduced cost compared to purchasing additional assets in the market. Consequently, the Company estimates that through self-origination, the yield on its holdings will be higher than the yield available from similar market-purchased assets. On December 31, 2005, the Company held $14.1 billion of mortgage assets in its portfolio. The Company s primary goals in managing its portfolio are to gain yield through the benefit of self-origination, and otherwise seek to reduce risk. The Company attempts to minimize the risks associated with holding a leveraged portfolio of securitized loans held for investment by approximately matching the duration of the Company s securitized loans held for investment with the duration of the liabilities the Company utilizes to finance those loans. The Company further seeks to mitigate risk by investing primarily in adjustable-rate mortgage ( ARM ) and hybrid-arm securitized loans. Taxable Subsidiary Loan Origination The Company operates a mortgage origination business that includes approximately 600 retail and wholesale loan production offices located in 45 states and the District of Columbia. The origination business produced $45.3 billion of loans in 2005 and was ranked as the nation s 11th largest residential mortgage lender by National Mortgage News for the fourth quarter of The origination business production of mortgage assets at relatively low costs helps drive the return earned by the mortgage holdings business. The origination business also sells loans into the secondary mortgage market for a cash gain. The mortgage origination business has been built through the acquisition of smaller mortgage origination companies and through organic growth. Through these acquisitions, the Company has grown its branch networks and sales forces, while building depth and enhanced capabilities in its core origination business operations. It has also improved the economies of its origination business through lower per-loan operating costs, reduced borrowing costs and better terms of business with loan buyers and credit insurers. During 2005, the Company completed the acquisition of 21 loan production branches from Irwin Mortgage Corporation as well as its credit union affinity business. Additionally, in January 2006, the Company acquired 46 retail, wholesale and correspondent mortgage loan production branches from Waterfield Financial Corporation. The Company plans to seek to grow the market share of its mortgage origination business in the future. Loan Servicing The Company s loan servicing business primarily services loans securitized by the Company. On December 31, 2005, the Company serviced approximately 158,000 loans with an outstanding principal amount of $30.7 billion. Loans are serviced for a fee which typically ranges from 0.25% to 0.50% of the principal amount of the loan per year. The Company s servicing capabilities are rated Select Servicer for both first and second lien products by Standard & Poor s.

4 Company Highlights Corporate Highlights Ranked by National Mortgage News as 11th in its list of Top Mortgage Originators for the fourth quarter of Acquired the mortgage origination branches and credit union affinity business from Irwin Mortgage Corporation. Increased regular quarterly dividend on the Company s common stock to $0.91 per share, or $3.64 per share annualized. Raised $319.5 million through a 9 million share common stock offering. Issued $210.0 million of trust preferred securities through trust subsidiaries. In January 2006, acquired Waterfield Financial Corporation, a subsidiary of Union Federal Bank of Indianapolis Loan Production (dollars in millions) $7,766 $12,196 $21,705 $23,069 $45,298 Book Value Per Share (dollars) $6.56 $9.82 $15.75 $17.18 Dividends Per Share (dollars) $ $0.12 $0.15 $0.91 $2.43 $3.24 Mortgage Holdings Highlights Mortgage-Backed Securities Portfolio Credit Quality (as of December 31, 2005) AAA or Agency Eligible 94.0% AA, A or BBB 3.8% Other 2.2% Mortgage Asset Portfolio (dollars in billions) 12/31/03 12/31/04 12/31/05 $1.9 $6.0 Mortgage Asset Portfolio ARM Product Mix (as of December 31, 2005) ARMs less than 3 years 27.1% Market Share* % 0.42% 0.56% 0.79% $14.1 3/1 Hybrid ARM 3.3% 1.60% 5/1 Hybrid ARM 64.5% Home equity/second 4.3% Other 0.8% *Market share based on actual company closings and Freddie Mac s estimate of the national market.

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Corporate Information Corporate Headquarters 538 Broadhollow Road Melville, NY 11747 Directors Michael Strauss Chairman of the Board and Chief Executive Officer John A.

121 Corporate Information Corporate Headquarters 538 Broadhollow Road Melville, NY Directors Michael Strauss Chairman of the Board and Chief Executive Officer John A. Johnston Director and President, Western Retail Division Nicholas R. Marfino Director Michael A. McManus, Jr. Director C. Cathleen Raffaeli Director Kenneth P. Slosser Director Irving J. Thau Director Management Donald Henig President, Wholesale Division John A. Manglardi President, Eastern Retail Division Ronald L. Bergum Executive Vice President, Western Retail Division Robert Bernstein Executive Vice President and Controller Christopher J. Cavaco Executive Vice President and Chief Information Officer Al Crisanty Executive Vice President, Wholesale Production Doug Douglas Executive Vice President, Business Processes Thomas J. Fiddler Executive Vice President, Eastern Retail Division Mark Filler Executive Vice President, Mergers and Acquisitions David M. Friedman Executive Vice President and Director of Servicing Kathleen R. Heck Executive Vice President, Eastern Retail Division Alan B. Horn Executive Vice President, General Counsel and Secretary Stephen A. Hozie Executive Vice President and Chief Financial Officer Robert F. Johnson, Jr. Executive Vice President and Director of Capital Markets Dena L. Kwaschyn Executive Vice President and Director of Operations Richard S. Loeffler Executive Vice President and Chief Administrative Officer Thomas M. McDonagh Executive Vice President and Chief Investment Officer Jeffrey R. McGuiness Executive Vice President, Direct-to-Consumer Lending Craig S. Pino Executive Vice President and Treasurer Rick Pishalski Executive Vice President, Correspondent Lending Division Ron Rosenblatt Executive Vice President, Sales Support Lisa M. Schreiber Executive Vice President, Wholesale Division Independent Registered Public Accounting Firm Deloitte & Touche LLP 750 College Road East Princeton, NJ (609) Corporate Counsel Cadwalader Wickersham & Taft LLP One World Financial Center New York, NY (212) Transfer Agent American Stock Transfer 59 Maiden Lane New York, NY (212) For more information on the Company, contact: Mary M. Feder Vice President and Investor Relations Director American Home Mortgage 538 Broadhollow Road Melville, NY (631) Nationwide Branch Network Branch Locations and State Totals Stock Exchange American Home Mortgage s Common Stock and its Series A and Series B Cumulative Redeemable Preferred Stocks trade on the New York Stock Exchange (NYSE). The trading symbols are as follows: AHM Common Stock AHM PrA 9.75% Series A Cumulative Redeemable Preferred Stock AHM PrB 9.25% Series B Cumulative Redeemable Preferred Stock Cautionary Note Regarding Forward-Looking Statements: Certain statements in this 2005 Annual Report, including the Letter to Stockholders, constitute forward-looking statements within the meaning of the federal securities laws. The words anticipate, may, estimate, should, seek, expect, plan, believe, intend, opportunity, potential, and similar words, or the negatives of those words, are intended to identify forward-looking statements. Forward-looking statements also include statements containing a projection of revenues, earnings (loss), capital expenditures, dividends, capital structure or other financial terms. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements are made. Forward-looking statements are inherently uncertain, and you must recognize that actual results may differ from expectations. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise

122 American Home Mortgage Investment Corp. 538 Broadhollow Road, Melville, NY 11747

Investor Presentation. January 16, 2018

Investor Presentation. January 16, 2018 Investor Presentation January 16, 2018 Forward Looking Statement This presentation includes forward-looking statements. All statements in this presentation, other than statements of historical facts, including