On May 16, 2002 Fog Cutter Capital Group Inc. acquired a 51% interest in George Elkins Mortgage Banking Company (“Elkins”). Headquartered in Los Angeles, with offices in Santa Barbara, San Diego and Newport Beach, Elkins originates commercial mortgages, primarily for their life insurance correspondents. Elkins specializes in commercial real estate loans in a variety of property types and loan amounts. Elkins’ senior executives, including Chief Executive Officer Jeffrey Hudson and President Steven Hinds, continue their active involvement in the operation.

Elkins originated nearly $1 billion in commercial mortgages over 2001 and 2002, primarily for life insurance companies, Wall Street conduits, and savings institutions. The mortgage banking operation also services in excess of $700 million of commercial mortgages for various investors. Fog Cutter Capital Group Inc.’s investment, through its wholly owned subsidiary, Fog Cap Commercial Lending Inc., is providing significant growth opportunities in the institutional lending market.