ECC Expects 4Q Loss

ECC Capital Corp., an Irvine, Calif.-based real estate investment trust that originates and invests in residential mortgage loans, has announced that it expects to take a fourth-quarter loss and that the pending sale of its mortgage banking business will likely close in the first quarter of 2007.The company said arrangements with Bear Stearns Residential Mortgage Corp., which is buying ECC's mortgage banking operations for an estimated total consideration of $26 million, are expected to reduce the cash requirements of funding the operating losses of the mortgage banking operations in the fourth quarter. "However, management cautions that, based on preliminary October and November results, operating losses are still expected for the fourth quarter of 2006," the company said.