Five OaksInvestment Corp. will significantly revise its prime jumbobusiness, effective Aug. 1, given the continued unfavorable market conditionsfor the aggregation and securitization of mortgage loans and the continuedimplementation of its defensive strategy.

The company will no longer aggregate prime jumbo mortgageloans, nor maintain financing capacity to do so, and will effectsecuritizations off of its proprietary platform only on an opportunistic basisvia transactions where unit Five Oaks Acquisition Corp. can concurrently buyand sell loans.

Accordingly, Five Oaks Investment elected not to renew itsmaster repurchase agreement with Barclays Bank PLC as buyer. The agreement isits last remaining warehouse facility. The company instead determined that anextension of the facility until Oct. 1 in the amount of $25 million will beample for its currently expected loan financing needs. The agreement previouslyprovided for an aggregate maximum capacity of $150 million.