Federal District Court Grants Summary Judgment in Favor of Fairbanks Capital Corp. in Barr & Associates Inc. V. CitiFinancial Mortgage Company, Fairbanks Capital Corp. and HomeSteps Asset Services

Business Wire, Sept 30, 2002

Business Editors/Legal Writers

SALT LAKE CITY--(BUSINESS WIRE)--Sept. 30, 2002

Fairbanks Capital Corp. today announced that the Federal District Court has granted summary judgment in its favor against Barr & Associates, Inc. The Court in a decision rendered on September 23, 2002 dismissed all of Barr's claims with prejudice.

In its complaint filed in August 2001 against CitiFinancial Mortgage Company, Fairbanks Capital Corp. and HomeSteps Asset Services, Barr had alleged, among other things, that Fairbanks had terminated a prior property management agreement between Barr and CitiFinancial and that the termination constituted tortious interference of contract. The Court disagreed concluding that Barr failed to produce any evidence to support its claims.

In rendering its decision, the Court stated, "(t)hat the Agreement is terminable at the option of either party and requires that 30 days written notice be provided. Barr complains that Fairbanks, not CitiFinancial, provided the notice. Barr does not dispute that notice was provided .... The Agreement does not specify the form that the notice of termination must take nor does it specify that CitiFinancial itself must give the notice. It is undisputed that Fairbanks became the servicer of CitiFinancial's loans; and as such, Fairbanks acted with the apparent, if not actual, authority in sending the notice to terminate the Agreement."

Barr has until October 23, 2002 to appeal the Court's decision.

Gregory Harmer, Fairbanks Capital's corporate counsel, said, "We have maintained throughout this case that the plaintiff's allegations where baseless and without merit and we are pleased that the Court confirmed our belief."

About Fairbanks Capital Corp.

Fairbanks Capital Corp. is a Salt Lake City, Utah-based financial services company engaged in the servicing and special servicing of single-family residential mortgage loans. Incorporated in 1989, Fairbanks Capital Corp. has established its reputation for performance over the past decade with the successful combination of people, technology and focus. Fairbanks Capital performs servicing of impaired credit loans and special servicing of non-performing loans for a host of financial services clients, including leading mortgage finance companies, investment and commercial banks and monoline bond insurers.

Fairbanks Capital is a privately-held company owned by affiliates of PMI Mortgage Insurance, Financial Security Assurance Inc. and senior management. Fairbanks Capital has four facilities located in Salt Lake City, Hatboro, PA, Jacksonville, FL, and Austin, TX, and currently employs approximately 2,400 employees. For more information on Fairbanks Capital Corp. visit www.fairbankscapital.com.