ECC Capital Corporation Announces the Resignation of Troy Gotschall, Executive Vice President and Chief Production Officer

IRVINE, Calif., Jan. 23 /PRNewswire-FirstCall/ -- ECC Capital Corporation , a mortgage finance real estate investment trust (REIT) that originates and invests in residential mortgage loans, today announced that as a result of ECC Capital's decision to exit the origination business following the consummation of the proposed transaction with Bear Stearns Residential Mortgage Corporation, Executive Vice President and Chief Production Officer Troy Gotschall tendered his resignation, effective January 15, 2007, in order to pursue other opportunities. Mr. Gotschall will serve as a consultant to ECC Capital in order to assist with the transition of his responsibilities.

Shabi Asghar, President and Co-Chief Executive Officer of ECC Capital commented, "Troy has been an influential member of the executive management team and we appreciate his many contributions and commitment to the Company in his roles as Executive Vice President and Chief Production Officer of the Company and President and CEO of the Company's subsidiary, Encore Credit Corp. We wish Troy the best of luck in his future endeavors."

About ECC Capital Corporation

ECC Capital Corporation, headquartered in Irvine, Calif., is a mortgage real estate investment trust (REIT) that originates and invests in residential mortgage loans. Primarily through its wholesale subsidiary, ECC Capital offers a series of mortgage products to borrowers, with a particular emphasis on "nonconforming" borrowers who generally do not satisfy the credit, collateral, documentation or other standards required by conventional mortgage lenders and loan buyers. ECC Capital is currently structured to qualify as a REIT by managing a portfolio of nonconforming loans it originates or acquires. As a REIT, ECC Capital is required to distribute dividends to its stockholders from net income generated from the spread between the interest income on its assets in its portfolio and the costs of capital to finance its acquisition of these assets.

For Further Information: AT THE COMPANY: Roque A. Santi Chief Financial Officer [phone]