Filed by Friedman, Billings, Ramsey Group, Inc.
                           Pursuant to Rule 425 under the Securities Act of 1933
               and deemed filed pursuant to Rule 14a-12 under the Securities Act

                               Subject Company: FBR Asset Investment Corporation
                                                   Commission File No: 001-15049

The following Letter to the Editor was written in response to an article
appearing in the January 27, 2003 issue of Barron's:



   "WE ARE ONE OF THE FEW FIRMS IN THE SECURITIES INDUSTRY THAT IS HIRING AND
                                  EXPANDING."
                                -ROBERT S. SMITH
                            FRIEDMAN BILLINGS RAMSEY

To the Editor:

I am writing to respond to what we view as the innuendo and inaccuracies in the
article addressing Friedman Billings Ramsey Group's planned merger with FBR
Asset Investment Corp. ("Role Reversal," Jan. 27).

Since FBR Group was created in 1989, we have built two successful public
companies through hard work, focus and discipline. We are very proud of these
achievements. Today, we are one of the few firms in the securities industry that
is hiring and expanding.

The article questions FBR Group's underwriting record. In fact, for the one- and
five-year periods ended Dec. 31 of last year, we rank No. 1 among major equity
underwriters for the aftermarket performance of our transactions, according to
CommScan Equidesk.

Over the past two years, we have raised almost $3.9 billion in 43 transactions.
As an institutional firm, FBR's distribution is to sophisticated professional
investors.

Over the past 13 years, FBR Group has evolved from 20 people and $1 million of
capital into a top-ten-ranked investment bank with more than 480 people and $260
million in equity. In 2002, we had one of the industry's highest returns on
equity.

The same management and employees who have achieved these successes in FBR Group
created and manage FBR Asset. Since 1997, we have run FBR Asset through one of
the most turbulent interest rate and economic environments in history, including
the Asian and Russian debt crisis and the resulting break in the domestic credit
and equity markets of 1998, the inverted yield curve of 1999 into 2000, the
rapidly declining interest rates of 2001 and 2002, and resulting prepayment
speeds -- hardly a "sweet spot" as the article suggests.

We have grown the book value of FBR Asset from $18.60 when we created it in 1997
to almost $29 a share. And the company has declared cash dividends of $ 14.36
over that period.

We believe the proposed merger of FBR Group and FBR Asset will strengthen each
of them, and provide significant benefits to both shareholder groups. We look
forward to the proxy mailing and shareholder vote.

In addition, neither Emanuel Friedman nor Eric Billings has ever been paid
additional fees for running hedge funds. Lastly, PNC formerly owned less than 5%
of FBR Group, not 12.14%.

Robert S. Smith
Chief Operating Officer
Friedman Billings Ramsey Group
Arlington, Va.

                                      # # #

Proxy Information

In connection with the proposed transactions, Friedman, Billings, Ramsey Group,
Inc., FBR Asset Investment Corporation and Forest Merger Corporation have filed
a preliminary joint proxy statement/prospectus with the Securities and Exchange
Commission.  In addition, FBR Group, FBR Asset and Forest Merger Corporation
will prepare and file a definitive joint proxy statement/prospectus and other
documents regarding the proposed transaction with the SEC.  Investors and
security holders are urged to carefully read the definitive joint proxy
statement/prospectus regarding the proposed transactions when it becomes
available, because it will contain important information.  Investors and
security holders may obtain a free copy of the definitive joint proxy
statement/prospectus (when it is available) and other documents containing
information about FBR Group and FBR Asset, without charge, at the SEC's web
site at http://www.sec.gov.  Free copies of both companies' filings may be
obtained by directing a request to 1001 Nineteenth Street North, Arlington,
Virginia 22209, Attention: Investor Relations.


Participants in Solicitation

FBR Group, FBR Asset and their respective directors, executive officers and
other members of their management and employees may be soliciting proxies from
their respective stockholders in connection with the proposed merger.
Information concerning FBR Group's participants in the solicitation is set forth
in FBR Group's proxy statement for its annual meeting of stockholders, filed
with the SEC on May 30, 2002.  Information concerning FBR Asset's participants
in the solicitation is set forth in FBR Asset's proxy statement for its annual
meeting of stockholders, filed with the SEC on April 23, 2002.  Additional
information is set forth in the preliminary joint proxy statement/prospectus and
will be set forth in the definitive preliminary joint proxy statement/prospectus
when it is filed with the SEC.