Exhibit 10.3

             AGREEMENT TO EXTEND AND AMEND MANAGEMENT AGREEMENTFBR

     This Agreement to Extend Management Agreement (the "Extension Agreement")
is made as of December 17, 2000, by and between FBR Asset Investment Corporation
(the "Company") and Friedman, Billings, Ramsey Investment Management, Inc. (the
"Manager").

     WHEREAS, the Company and the Manager are parties to that certain Management
Agreement, dated as of December 17, 1997, and extended and amended by that
certain Agreement to Extend and Amend Management Agreement, dated as of December
17, 1999 (the "Management Agreement");

     WHEREAS, the Management Agreement provides in Section 12 thereof that the
parties may extend the term of the Management Agreement for up to 12 months by
executing a written extension; and

     WHEREAS, the parties have determined to extend the term of the Management
Agreement by 12 months, from December 17, 2000 to December 17, 2001, in
accordance with Section 12 of the Management Agreement.

     NOW, THEREFORE, in consideration of the mutual agreements set forth herein,
the parties agree as follows:

     SECTION 1.  Extension.  The parties hereby agree to extend the term of the
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Management Agreement by 12 months, from December 17, 2000 to December 17, 2001.

     SECTION 2.  Other terms.  Other than as expressly extended hereby, all
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other terms, conditions and provisions of the Management Agreement shall remain
in effect during the 12 month extension provided for hereby, unless the
Management Agreement is amended in writing by the parties or is sooner
terminated in accordance with the provisions thereof.

     IN WITNESS WHEREOF, the parties hereto have executed this Extension
Agreement as of the date first written above.


FBR ASSET INVESTMENT                   FRIEDMAN, BILLINGS, RAMSEY
CORPORATION                            INVESTMENT MANAGEMENT, INC.



By: /s/ RICHARD J. HENDRIX             By:  /s/ KURT R. HARRINGTON
   --------------------------              ------------------------
Name:  Richard J. Hendrix              Name: Kurt R. Harrington
Tittle:  Chief Operating Officer       Title:  Chief Financial Officer and
                                               Treasurer