American Residential Investment Trust, Inc. Provides Guidance On Third Quarter.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Sept. 20, 2002

American Residential Investment Trust, Inc. (NYSE: INV):

-- Announces anticipated operating loss of approximately $3.5 million for the third quarter.

-- Expects to fund $1.1 billion in home loans through American Mortgage Network in the third quarter of 2002.

-- Retains Mortgage Capital Management to perform interest rate risk management.

American Residential Investment Trust, Inc. (NYSE: INV) today announced that operating losses for the third quarter are anticipated to be approximately $3.5 million, or $0.44 per share. The Company's mortgage subsidiary, American Mortgage Network (AmNet), expects to fund $1.1 billion in home loans during the third quarter, an 88% increase over the second quarter of 2002.

During the third quarter of 2002, AmNet incurred losses on its derivative financial instruments, which have consisted primarily of options on treasury futures. AmNet used these instruments to hedge its pipeline of mortgage rate lock commitments and a portion of its loan inventory against changes in value caused by increases in market interest rates. In August 2002, AmNet sold or closed its position in substantially all of its remaining options on treasury futures. Losses and commissions associated with investments in treasury options and selling or closing AmNet's position in these options will be approximately $7.8 million for the third quarter.

As a result of hedging performance, AmNet has reorganized its hedging operations and in August, 2002 retained Mortgage Capital Management to perform interest rate risk management. MCM is a quantitative software and advisory firm that currently serves twenty-four clients in the mortgage banking industry (www.mortcap.com). MCM is performing pipeline exposure analysis and is making hedging recommendations on a daily basis for AmNet.

Consistent with MCM's hedging methodology, the Company anticipates that AmNet's primary hedging instruments will emphasize forward mortgage sale instruments. These instruments align more closely with AmNet's pipeline of loan commitments than the treasury-based derivatives previously used. Although mortgage hedging is always susceptible to the risks inherent in estimating pipeline fallout rates, the Company intends to decrease its exposure to the recent extreme volatility in the treasury markets and the subsequent reduced correlation between mortgages and treasury options.

John M. Robbins Jr., the Company's Chief Executive Officer, noted, "By utilizing MCM's expertise in interest rate management, we believe we have strengthened our hedging operations. MCM's capital management techniques tend to be more effective during volatile market cycles. We also anticipate that their hedging methodology will help us develop and execute sound hedging strategies, making our loan sale margins, net of hedging gains and losses, less susceptible to movements in interest rates."

Mr. Robbins added, "In AmNet's first year of operation, origination volume has consistently increased from quarter to quarter. Regional centers across the country are firmly established in key demographic areas. Experienced mortgage bankers have joined our team. We have increased our warehouse loan funding capacity to $425 million. We believe that we have built the infrastructure required to support a profitable level of production and expect to reach approximately $500 million in monthly loan production by the end of the year. We also anticipate that the Company will achieve operational profitability in the fourth quarter of 2002."

About American Mortgage Network

Headquartered in San Diego, California, American Mortgage Network is a wholly owned subsidiary of American Residential Investment Trust, Inc. AmNet originates loans for the national mortgage broker community through its network of regional centers and over the Internet. AmNet has regional centers in Ontario, California; Sacramento, California; San Diego, California; New Haven, Connecticut; Denver, Colorado; Atlanta, Georgia; Minneapolis, Minnesota; and Portland, Oregon as well as satellite offices in Mission Viejo, California; Tampa, Florida; and Kirkland, Washington. For more information, please visit www.amnetmortgage.com.

About American Residential Investment Trust

American Residential Investment Trust, Inc. is a real estate investment trust (REIT) that has traditionally invested in subprime residential mortgage assets. The Company intends to terminate its status as a mortgage REIT in the first quarter of 2003. Prior to that time, American Residential Investment Trust intends to move to another national equity market exchange. For more information, please visit www.amerreit.com.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding closed loan volumes; the Company's expectation of being operationally profitable in the fourth quarter; the expected loss for the third quarter; the expected loss from the use of treasury option derivatives; the Company's intention to decrease its exposure to volatility in treasury markets and the reduced correlation between mortgages and treasury options; the Company's anticipation of using forward mortgage sale instruments as its primary hedging instrument; the anticipated correlation of the volatility of the value of AmNet's loan commitments to the value of forward mortgage sale instruments; the effectiveness of MCM's techniques in volatile market cycles; the Company's belief it has strengthened its hedging operations and the Company's margins net of hedging gains and losses being less susceptible to volatility; the Company's infrastructure being adequate to support a profitable level of production; the timing of removing the Company's status as a REIT; and plans to move to another national stock exchange. Actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors, including but not limited to: uncertainty as to the percentage of the pipeline that will result in mortgage loan fundings; fluctuation in the margins, net of hedging, of loans in the Company's pipeline; the predictability of the Company's expenses; the future correlation of volatility in forward mortgage sale instruments to the Company's loan lock commitments; general economic conditions; interest rate volatility and the level of interest rates generally; the availability of suitable mortgage assets; the availability of financing for the origination of mortgage loans; the impact of leverage; the Company's liquidity position; the effects of terminating the Company's REIT status; the ability of the Company to qualify for listing on another exchange; and other risk factors outlined in American Residential Investment Trust's SEC reports.