Saxon to Restate Earnings

Saxon Capital Inc., a residential mortgage lender and real estate investment trust based in Glen Allen, Va., has announced that it will restate its earnings for the years 2001 through 2005 and its quarterly earnings for 2004 and the first three quarters of 2005.Saxon said the restatements are aimed at eliminating the use of hedge accounting treatment under Statement of Financial Accounting Standards No. 133 for derivative instruments that were used to manage interest rate risk. The company said it recently re-evaluated its application of SFAS 133 and determined that it did not satisfy the hedge accounting requirements prescribed for the use of derivatives. The REIT can be found online at http://www.saxonmortgage.com.