Company Completes Merger of Former Walter Finance Business with Hanover Capital Mortgage Holdings TAMPA, Fla., April 20 /PRNewswire-FirstCall/ -- Walter Investment Management Corp. (NYSE Amex: WAC) announced the successful completion of the spin-off of the former finance business of Walter Industries, Inc. and the merger of that business with Hanover Capital Mortgage Holdings, Inc. to form Walter Investment Management Corp. "We are excited about these next steps for Walter Investment Management Corp. and the opportunities available to us," said Chairman and CEO Mark J. O'Brien. "We have a long track record of superior financial performance through up-and-down credit cycles attributable to our unique mortgage servicing approach. We have a strong, seasoned management team in place and expect our $1.8 billion mortgage portfolio to return a stream of steady dividends to our shareholders for years to come." O'Brien stressed that, while many lenders have struggled in the recent economic downturn, Walter Investment has continued to generate strong, stable performance. "Our mortgage portfolio is almost entirely fixed rate and was originated with a consistent, disciplined underwriting approach," he said. "With our high-touch mortgage servicing platform, the result is a 30-day delinquency rate that has remained well below six percent." The Company has servicer ratings of "Average/Select Servicer" from Standard and Poors and "RPS 3-" from Fitch. The Company also expects to pursue opportunities to leverage its asset management capabilities and unique servicing platform to expand its revenue base beyond that provided from the existing portfolio. "Our approach has a track record of producing prime results from sub-prime assets and we believe there is a tremendous need for that capability in today's environment," said O'Brien. In addition to its asset management capabilities and mortgage servicing platform, the Company offers full loan sale advisory and valuation services for private companies and government agencies through Hanover Trade. The Company also offers insurance services focused on property casualty lines supporting the mortgage servicing business. In conjunction with the separation and merger, Walter Investment unveiled a new corporate identity and web site. The Company's corporate identity pays tribute to Walter Mortgage Company's founder Jim Walter, while the red-white-and-blue color scheme communicates the sense of pride and trust employees, shareholders and customers should feel with the new Company. The web site, which can be found at http://www.walterinvestment.com/, has sections about the Company's operations, as well as customer, investor relations, employment and other information about the Company. Customers of Walter Mortgage, Best Insurors or Hanover Trade visiting their legacy web sites will be automatically re-directed to the new site. About Walter Investment Management Corp. Walter Investment Management Corp. is a mortgage servicer and portfolio owner specializing in subprime, non-conforming and other credit-challenged mortgage assets. Based in Tampa, Fla., the Company currently has $1.8 billion of assets under management and pro-forma annual revenues of approximately $200 million. The Company is structured as a real estate investment trust ("REIT") and employs approximately 225 people. Safe Harbor Statement Certain statements in this release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Walter Investment Management Corp. is including this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical fact are forward-looking statements. The use of words such as "expect," "anticipate," "project," "estimate," "forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements, to differ materially from future results, performance or achievements. The forward-looking statements are based on the Company's current belief, intentions and expectations. These statements are not guarantees or indicative of future performance. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. These risks and uncertainties are contained in Walter Investment Management Corp.'s Registration Statement on Form S-4 dated February 17, 2009, the Risk Factors described in Walter Investment Management Corp's 2008 Annual Report on Form 10-K, and Walter Investment Management Corp.'s other filings with the Securities and Exchange Commission. Walter Investment Management Corp. undertakes no obligation to update its forward-looking statements as of any future date. In addition, the following important factors and assumptions could affect the Company's future results and could cause actual results to differ materially from those expressed in the forward looking statements: -- Integration of the former Hanover Capital Mortgage Holdings, Inc. business into that of Walter Investment Management, LLC and its affiliates (the "Merger"); -- The Company's continued qualification as a REIT for Federal Income Tax Purposes; -- Local, regional, national and global economic trends and developments in general; and local, regional and national real estate and residential mortgage market trends and developments in particular; -- Financing sources and availability, and future interest expense; -- Changes in federal, state and local policies, laws and regulations affecting mortgage financing or servicing; -- Anticipated business development activities and future capital expenditures; and -- Future performance generally. All forward looking statements set forth herein are qualified by these cautionary statements and are made only as of April 20, 2009. The Company undertakes no obligation to update or revise the information contained herein whether as a result of new information, subsequent events or circumstances or otherwise, unless otherwise required by law. DATASOURCE: Walter Investment Management Corp. CONTACT: Investor and Media, Whitney Finch, Director, Investor Relations of Walter Investment Management Corp., +1-813-871-4406, Web Site: http://www.walterinvestment.com/

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