FBR Securitization 8-K Other Events

FBR Securitization Trust 2005-4

Disclaimer

COMPUTATIONAL MATERIALS

This presentation contains tables and other statistical analyses (the“Computational Materials”). These Computational Materials have been prepared by Friedman, Billings, Ramsey & Co., Inc. (“FBR”) in reliance upon information furnished by the issuer of the securities and its affiliates. These Computational Materials are furnished to you solely by FBR and not by the issuer of the securities. They may not be provided to any third party other than the addressee’s legal, tax, financial and/or accounting advisors for the purposes of evaluating said material.

Numerous assumptions were used in preparing the Computational Materials which may or may not be reflected therein. As such, no assurance can be given as to the Computational Materials’ accuracy, appropriateness or completeness in any particular context. In addition, no assurance can be given as to whether the Computational Materials and/or the assumptions upon which they are based reflect present market conditions or future market performance. These Computational Materials should not be construed as either projections or predictions or as legal, tax, financial or accounting advice.

Any weighted average lives, yields and principal payment periods shown in the Computational Materials are based on prepayment assumptions, and changes in such prepayment assumptions may dramatically affect such weighted average lives, yields and principal payment periods. In addition, it is possible that prepayments on the underlying assets will occur at rates slower or faster than the rates shown in the attached Computational Materials. Furthermore, unless otherwise provided, the Computational Materials assume no losses on the underlying assets and no interest shortfall.

If the Computational Materials were generated using a hypothetical group of mortgage loans, the specific characteristics of the securities may differ from those shown in the Computational Materials due to differences between the actual underlying assets and the hypothetical underlying assets used in preparing the Computational Materials. If these Computational Materials are based only on a statistical pool of mortgage loans expected to be included in the trust along with other mortgage loans on the closing date, the specific characteristics of these securities also may differ from those shown in the Computational Materials. A statistical pool may not necessarily represent a statistically relevant population, notwithstanding any contrary references herein. Although FBR believes the information with respect to the statistical pool will be representative of the final pool of mortgage loans, the collateral characteristics of the final pool may nonetheless vary from the collateral characteristics of the statistical pool. Certain mortgage loans contained in a statistical pool or the actual pool may be deleted from the final pool of mortgage loans delivered to the trust on the closing date.

The principal amount and designation of any security described in the Computational Materials are subject to change prior to issuance. Neither FBR nor any of its affiliates makes any representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities.

Questions for US RMBS

1. Are the loans 100% originated by the seller of this transaction? Or are they re-underwritten (wholesale)? Please provide breakdown.

The Seller acquired all loans from ResMAE Mortgage Corporation. 25% of the pool was re-underwritten at acquisition. AVMs (and in sum cases appraisal reviews) were conducted on 100% of the collateral.

2. For all loans that are originated under anything less than ‘Full Documentation’ please provide full details of the loan documentation programs.

ResMAE’s underwriters verify the income of each applicant under various documentation types as follows: under Full Documentation, applicants are generally required to submit verification of stable year to date income and the preceding year’s income; under Limited Documentation, the borrower is qualified based on verification of adequate cash flow by means of personal or business bank statements; and under Stated Income, applicants are qualified based on monthly income as stated on the mortgage application. The income stated must be reasonable and customary for the applicant’s line of work and although the income is not verified under the Stated Income program, a pre-closing audit generally will confirm that the business exists. Verification may be made through phone contact to the place of business, obtaining a valid business license or through Nexis On-Line Services.

3. Are the Primary Servicer responsibilities being retained by the issuer or sub-contracted/released?

Servicing is done on a released basis by JPMorgan Chase.

4. What are the Master Servicers responsibilities. Hot back-up or less, please detail. Is it possible to get a copy of the Master servicer bid document?

5. What is the expected excess spread (bps)? Please provide an excess spread schedule using the note CPR assumptions.

The Excess Spread Schedule is located on page 17 of the term sheet. 100% of the pricing speed was used to create the table. The other assumptions are listed below the table.

6. What interest rate fixing (Prime, 1mth LIBOR etc.) are the loans set against?

What are the reset dates of the loans i.e. does a 12M LIBOR indexed loan reset monthly or annually?

Index: 6M LIBOR

Subsequent Reset Frequency: 6 Months

7. What is the servicing fee? Does the servicing fee step-up during the life of the deal? If so dates and amounts?

50 bps. The servicing fee does not step-up

8. Are there any servicer advances, if so, are they for both interest and principal, are they refundable and how?

Both principal and interest are advanced. The servicer is reimbursed when the payment is made by the borrower or from proceeds from the liquidation of the loan. If liquidation proceeds are not enough to reimburse all advances on that loan the servicer may recoup advances from the Collection Account.

9. What is the step up?

Margins on Class A setep up 2x and Class M step up 1.5x after the Optional Termination may be first excercised (20% of Original Collateral Balance).

10. What is the legal maturity?

Final Maturity Date: The Payment Date in October 2035.

11. What are the assumptions used to calculate the hedge balances? What is the impact of increasing/decreasing the CPR by 5% and 10% (please a table showing readjustments in balances)

The FBR portfolio uses its internal speed and loss assumptions to determine hedge balances. See end of questions for Hedge Balance Table

12. Who is the hedge counterparty? If unknown, what are the criteria?

The cap provider must meet S&P and Moody’s criteria for credit in structured finance transactions.

13. If not in term sheet: please send the AFC schedule. What are the assumptions underlying the cap schedule

Available Funds Rate is on page 15 of the term sheet.

14. Is there a hard cap or life cap in the deal? If so, what level?

14.00% hard cap.

15. Please provide historical performance for the originator(s) over the last 5 years.

N/A

16. Are any of the prepayment penalty fees paid to the benefit of the waterfall? If so, how much and structure of how split?

No

17. Do AAA Class cap payments go directly and only to pay AAA Class shortfalls? Please send the applicable payment waterfall.

Cap payments are incorporated at the top of the waterfall as interest payments. Please see page 7, 8, and 12 of the term sheet.

					Total Beginning Bond Balance
	Cap				Pricing		Pricing		Pricing		Pricing
	Notional		Pricing		Speed + 5		Speed + 10		Speed - 5		Speed - 10
	Balance		Speed		CPR		CPR		CPR		CPR
1		991,551,000		988,178,000		988,178,000		988,178,000		988,178,000		988,178,000
2		965,868,954		978,287,028		973,999,913		969,485,548		982,369,979		985,609,083
3		940,668,356		967,185,935		958,549,048		949,491,063		975,443,215		982,696,493
4		915,932,313		954,028,647		941,004,330		927,400,734		966,529,003		977,895,789
5		891,645,168		938,660,630		921,239,993		903,119,750		955,446,406		971,000,237
6		867,792,630		921,476,039		899,673,228		877,090,006		942,568,491		962,363,731
7		844,361,767		902,289,151		876,150,656		849,192,264		927,679,292		951,742,549
8		821,340,990		881,286,247		850,887,629		819,672,452		910,937,889		939,270,616
9		798,720,031		858,700,663		824,222,699		788,982,567		892,479,830		924,992,555
10		776,489,914		834,724,317		796,368,287		757,354,499		872,476,186		909,058,702
11		754,647,749		811,382,027		769,412,722		726,943,618		852,891,624		893,375,412
12		733,387,365		788,612,090		743,284,675		697,663,410		833,669,857		877,888,717
13		712,694,112		766,499,604		718,052,431		669,560,056		814,908,718		862,706,044
14		692,552,840		744,929,282		693,594,740		642,501,491		796,495,114		847,713,714
15		672,948,806		723,981,691		669,975,532		616,530,288		778,522,660		833,015,562
16		653,867,661		703,593,349		647,123,769		591,563,090		760,932,049		818,553,866
17		635,295,440		683,615,959		624,891,217		567,447,829		743,571,572		804,170,945
18		617,218,549		664,301,294		603,499,339		544,373,260		726,720,023		790,170,323
19		599,623,762		645,460,125		582,763,427		522,155,711		710,180,630		776,345,291
20		582,498,204		627,162,700		562,737,642		500,830,280		694,037,210		762,791,180
21		565,829,343		609,282,024		543,295,460		480,267,274		678,160,614		749,373,967
22		549,604,987		576,101,239		509,225,481		445,748,290		646,320,481		719,357,541
23		533,813,265		544,242,426		476,848,018		413,302,225		615,445,434		689,964,220
24		518,219,095		514,087,830		446,462,719		383,140,092		585,994,665		661,727,201
25		503,045,179		485,632,710		418,023,273		355,167,630		557,999,388		634,708,932
26		488,280,207		470,229,976		402,109,268		339,189,266		543,584,624		621,795,677
27		473,913,176		455,338,774		386,809,294		323,921,954		529,579,457		609,196,040
28		459,933,377		440,876,919		372,040,951		309,281,368		515,900,215		596,823,359
29		446,330,389		426,666,177		357,644,594		295,123,201		502,346,466		585,433,611
30		433,152,159		412,918,383		343,793,146		281,583,308		489,550,953		574,343,869
31		420,327,731		399,538,405		330,398,368		268,578,401		477,511,197		563,454,720
32		407,847,618		386,826,830		317,488,561		256,123,100		465,751,962		552,762,519
33		395,702,588		374,894,901		305,004,116		244,159,768		454,266,690		542,263,687
34		383,883,654		363,306,325		292,970,339		232,701,082		443,048,365		531,953,980
35		372,381,801		352,082,510		281,550,148		221,645,824		432,128,851		521,875,671
36		361,224,579		341,181,144		270,856,468		211,025,805		421,462,736		511,978,693
37		350,366,088		330,593,055		260,532,939		200,852,825		411,044,271		502,259,950
38		350,366,088		328,795,125		260,532,939		200,149,270		404,761,762		492,716,213
39		341,531,661		319,376,091		253,955,022		198,278,422		395,388,009		483,344,314
40		332,353,051		310,227,722		245,196,095		190,199,484		386,231,922		474,141,252
41		323,420,257		301,352,272		236,748,112		182,456,858		377,301,088		465,352,269
42		314,738,090		292,731,596		228,592,210		175,030,540		368,577,391		456,998,845
43		306,288,157		284,358,243		220,718,171		167,907,500		360,055,867		448,795,525
44		298,064,253		276,225,095		213,116,221		161,075,313		351,731,813		440,739,594

					Total Beginning Bond Balance
	Cap				Pricing		Pricing		Pricing		Pricing
	Notional		Pricing		Speed + 5		Speed + 10		Speed - 5		Speed - 10
	Balance		Speed		CPR		CPR		CPR		CPR
45		290,060,339		268,325,234		205,776,927		154,522,065		343,600,632		432,828,389
46		282,270,538		260,651,985		198,691,215		148,236,352		335,657,887		425,059,358
47		274,689,153		253,199,435		191,850,751		142,207,552		327,899,989		417,430,949
48		267,311,422		245,960,627		185,246,578		136,424,808		320,321,855		409,939,625
49		260,131,051		238,929,346		178,870,460		130,878,008		312,919,220		402,582,803
50		253,142,769		232,099,622		172,714,494		125,557,495		305,688,003		395,358,052
51		246,341,443		225,465,655		166,771,054		120,454,005		298,624,215		388,262,987
52		239,722,079		219,021,823		161,032,783		115,558,661		291,723,976		381,295,279
53		233,279,825		212,762,931		155,492,774		110,863,086		284,983,853		374,453,117
54		227,010,298		206,683,401		150,143,972		106,358,972		278,399,777		367,733,779
55		220,908,517		200,778,043		144,979,732		102,038,470		271,968,077		361,134,989
56		214,970,000		195,041,850		139,993,665		97,894,069		265,685,211		354,654,573
57		209,190,386		189,469,959		135,179,601		93,918,568		259,547,722		348,290,392
58		203,565,430		184,057,478		130,531,466		90,104,972		253,552,008		342,040,057
59		198,090,700		178,797,577		126,041,868		86,445,480		247,691,763		335,897,546
60		192,760,255		173,688,310		121,707,116		82,935,087		241,967,087		329,865,169