Swartz replacement as chairman will be the company's chief executive, Richard J. Wrensen. Wrenson became chief executive at the end of 2006. The appointment coincided with the tumultuous decline in the value of the company's primary asset, non-conforming residential mortgages in California, which were assembled by a former manager of the company.

CAIT suspended its mortgage banking operations in 2006 and in 2007 added three new independent directors in 2007. Management is now concentrating on managing the existing mortgages, generating liquidity and reducing debt. CAIT is also examining strategic changes in its business model and investment policies to restore profitability and enhance shareholder value.

CAIT also announced this week that 2007's fourth quarter financial results will produce a net loss of approximately $2.95 million. The portfolio's non-performing mortgages require increased loan loss reserves (expenses) and currently performing loans also require additional reserves to recognize the continued deterioration of residential property values and their effect on mortgage claims, according to the company.