SAX Saxon Cap New

Saxon Capital, Inc. ("Saxon" or the "Company") (NYSE: SAX), a residential mortgage lending and servicing real estate investment trust (REIT), today announced that effective January 1, 2006, it began conducting its retail business in its wholly owned indirect subsidiary, Saxon Mortgage, Inc. under the trade name, "Saxon Home Mortgage". This consolidation of all of the Company's production channels into Saxon Mortgage, Inc. was accomplished by merging the Company's wholly owned indirect subsidiary, America's MoneyLine, Inc. into Saxon Mortgage, Inc., with Saxon Mortgage, Inc. remaining as the successor company. "This name change is an important step in the Company's continuing effort to restructure its direct-to-consumer lending platform. The Saxon Home Mortgage name and operating platform will compliment the existing indirect origination channels while continuing to provide superior customer service and mortgage products commonly identified with the Saxon brand", said James V. Smith, Executive Vice President of Production at Saxon. Saxon Home Mortgage originates non-conforming mortgage loans directly with consumers through a network of regional branches and centralized lending platforms throughout the United States. About Saxon Saxon is a residential mortgage lender and servicer that manages a portfolio of mortgage assets. Saxon purchases, securitizes, and services real property secured mortgages and elects to be treated as a real estate investment trust (REIT) for federal tax purposes. The company is headquartered in Glen Allen, Virginia and has additional primary facilities in Fort Worth, Texas and Foothill Ranch, California. Saxon's production subsidiary, Saxon Mortgage, Inc., originates and purchases loans through indirect and direct lending channels through a network of brokers, correspondents, and retail lending centers. As of September 30, 2005, Saxon's servicing subsidiary, Saxon Mortgage Services, Inc., serviced a mortgage loan portfolio of $26.4 billion. For more information, visit www.saxoncapitalinc.com. Information Regarding Forward Looking Statements Statements in this news release other than statements of historic fact, are "forward-looking statements" that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect Saxon's future plans. Saxon's actual results and the timing and occurrence of expected events could differ materially from its plans and expectations due to a number of factors, such as (i) changes in overall economic conditions and interest rates, (ii) Saxon's ability to successfully implement its growth strategy, (iii) Saxon's ability to sustain loan origination growth at levels sufficient to absorb costs of production and operational costs, (iv) continued availability of credit facilities and access to the securitization markets or other funding sources, (v) deterioration in the credit quality of Saxon's loan portfolio, (vi) lack of access to the capital markets for additional funding, (vii) challenges in successfully expanding Saxon's servicing platform and technological capabilities, (viii) Saxon's ability to remain in compliance with federal tax requirements applicable to REITs, (ix) Saxon's ability and the ability of its subsidiaries to operate effectively within the limitations imposed on REITs by federal tax rules, (x) changes in federal income tax laws and regulations applicable to REITs, (xi) unfavorable changes in capital market conditions, (xii) future litigation developments, (xiii) competitive conditions applicable to Saxon's industry, and (xiv) changes in the applicable legal and regulatory environment. You should also be aware that all information in this news release is as of January5, 2006. Saxon undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.