American Mortgage Acceptance Company Reports Third Quarter Financial Results for 2006.

NEW YORK -- American Mortgage Acceptance Company ("AMAC" or the "Company") (AMEX:AMC) today announced financial results for its third quarter and nine months ended September 30, 2006.

"AMAC's financial results in the third quarter reflect the impact of our strategy to divest of lower-yielding, non-core assets, and invest in assets with a higher return on equity for AMAC," said J. Larry Duggins, Chief Executive Officer of AMAC. "Subsequent to quarter end, our Board of Trustees approved the sale of 22 of our Fannie Mae certificates with an outstanding carrying amount of $82.1 million. We then contracted to sell 20 of these certificates and are currently reviewing our options to sell the two remaining securities. As we no longer intended to hold these securities, we concluded that the unrealized losses associated with these assets were other than temporary as of September 30, 2006, and we recognized impairment losses of approximately $2.2 million in the third quarter. These certificates were acquired prior to the launch of our new direct lending program and were not producing a return on equity to AMAC equivalent to what we expect to earn on the new mortgage investments acquired in 2006. We expect to use the proceeds from this sale to fund our existing loan pipeline and to deploy the capital into higher yielding investments. In addition, in connection with a total credit analysis of our mortgage portfolio, our risk management professionals felt that it was necessary to write down an additional $2.4 million related to two non-performing loans that had been in monetary default. These loans were also originated prior to the launch of our direct lending program and had a different risk profile associated with them as compared to the loans we are currently originating. We are continuing to pro-actively manage any non-performing loans to ensure that we take the most appropriate measures to preserve our investments, as well as examine ways to more efficiently deploy our capital and maximize shareholder value. Importantly, our loan origination activity totaled $140.6 million in the third quarter, bringing our year to date originations to approximately $292.3 million, a record level for our Company."

Financial Highlights

AMAC reported total revenues of approximately $10.2 million for the three months ended September 30, 2006, representing a decrease of 20.0% as compared to revenues of approximately $12.8 million for the three months ended September 30, 2005. Revenues compared unfavorably to the third quarter of 2005 due to a significant non-recurring prepayment fee recognized in the 2005 period. AMAC's total revenues for the nine months ended September 30, 2006 were approximately $26.6 million, representing an increase of approximately 1.5% as compared to revenues of approximately $26.2 million for the nine months ended September 30, 2005.

The table below summarizes AMAC's net income and Funds from Operations ("FFO") for the three and nine months ended September 30, 2006 and 2005. AMAC's financial results for the three and nine months ended September 30, 2006 include a significant charge against earnings from the change in the fair value of derivative instruments, net of certain associated costs. Therefore, the Company is reporting net income and FFO both excluding ("adjusted") and including these changes and costs.

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As previously disclosed, Net Income, Adjusted Net Income, FFO and Adjusted FFO reported in this press release for 2006 include a $19.2 million gain associated with the Company's sale of its investment in ARCap Investors, LLC ("ARCap"), and $3.0 million of equity in earnings of ARCap prior to the sale.

Investment Activity

In the third quarter of 2006, a subsidiary of AMAC originated first mortgage and mezzanine loans and subordinated notes totaling approximately $140.6 million, bringing our total origination for the first nine months of 2006 to approximately $292.3 million. These investments and loans are secured by multifamily, office and retail properties.

CDO Notes Offering

On October 18, 2006, AMAC CDO Funding I, a wholly owned subsidiary of the Company, (the "Issuer"), priced a proposed offering of approximately $362.0 million aggregate principal amount of non-recourse CDO Notes. AMAC CDO will issue the Notes secured by an approximate $400.0 million portfolio of multifamily and commercial real estate assets. AMAC expects to account for the transaction as a financing and record on its balance sheet the underlying collateral as assets and the Notes sold as liabilities.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Notes referred to herein in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer, if any at all, will be made only by means of an offering memorandum. The Notes will not be registered under the Securities Act or applicable state securities laws, and are being offered by the initial purchasers only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act. Unless so registered, the Notes cannot be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Management Conference Call

Management will conduct a conference call today to review the Company's third quarter financial results for the period ended September 30, 2006. The conference call is scheduled for 11:00 a.m. Eastern Time. Callers will be invited to ask questions. Investors, brokers, analysts, and shareholders wishing to participate should call [phone]. A webcast of the presentation will be available live and can be accessed through the Company's website, www.americanmortgageco.com. To listen to the presentation via webcast, please go to the website's "Investor Relations" section at least 15 minutes prior to the start of the presentation. For interested individuals unable to join the conference call, a replay of the call will be available through Saturday, November 11, 2006 at [phone] (Passcode 1193874) or on our website, www.americanmortgageco.com, through Tuesday, December 5, 2006.

Supplemental Financial Information

For more detailed financial information, please access the Supplemental Financial Package, which is available in the Investor Relations section of the AMAC website at www.americanmortgageco.com.

About the Company

AMAC is a real estate investment trust that specializes in multifamily and commercial real estate finance. AMAC originates and acquires first mortgage, mezzanine and bridge loans secured by properties throughout the United States. For more information, please visit our website at http://www.americanmortgageco.com or contact the Investor Relations Department directly at [phone].

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Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in AMAC's most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission and include, among others, risks of investing in uninsured and non-investment grade mortgage assets and subordinated Commercial Mortgage-Backed Securities ("CMBS"); competition in acquiring desirable investments; interest rate fluctuations; risks associated with hedging transactions, which can limit gains and increase exposure to loss; risks associated with investments in real estate generally and the properties which secure many of our investments; general economic conditions, particularly as they affect the value of our assets and the credit status of our borrowers; dependence on our external Advisor for all services necessary for our operations; conflicts which may arise among us and other entities affiliated with our Advisor which have similar investment policies to ours; risks associated with the repurchase agreements we utilize to finance our investments and the availability of financing generally; and risks associated with our contemplated CDO transactions, which include, but are not limited to, the inability to acquire eligible investments for a CDO issuance and the inability to find suitable replacement investments in collateralized debt obligations with reinvestment periods. Such forward-looking statements speak only as of the date of this document. AMAC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in AMAC's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.