Website: N/A
Stock Symbol: AMEX: WAC
Market Value: N/A (in millions)

Hanover Capital Mortgage Holdings, Inc. (“We “ or the “Company”) is a specialty finance company whose principal business is to generate net interest income on its portfolio of prime mortgage loans and mortgage securities backed by prime mortgage loans on a leveraged basis. We avoid investments in sub-prime and Alt-A loans or securities collateralized by sub-prime or Alt-A loans. We leverage our purchases of mortgage securities with borrowings obtained primarily through the use of sales with agreements to repurchase the securities (“Repurchase Agreements”). Historically, the Repurchase Agreements were on a 30-day revolving basis and, for the majority of the Company’s investments, are currently under a single Repurchase Agreement for a one-year fixed term basis that expires in August 2008. We conduct our operations as a real estate investment trust, or REIT, for federal income tax purposes. We have one primary subsidiary, Hanover Capital Partners 2, Ltd. (“HCP-2”).