American Business Financial Services, Inc. Announces Renewal of $100 Million MBIA/Bear Stearns Credit Facility.Business Editors BALA CYNWYD, Pa.--(BUSINESS WIRE)--April 30, 2002 American Business Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. (Nasdaq:ABFI) today announced a one-year renewal of its credit facility through MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation and Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. & Co., Inc. The $100 million mortgage loan warehouse facility is to a trust which purchases mortgages originated by affiliates of ABFI. The facility is intended to enable ABFI to grow its lending subsidiaries, specifically American Business Credit, Inc., Upland Mortgage, and American Business Mortgage Services, Inc. "We are very happy to have been able to renew this facility for another year," said ABFI Executive Vice President Jeffrey M. Ruben. "Our relationship with MBIA and Bear Stearns has continued to flourish over the past few years, and the fact that these two highly respected companies collaborated to provide this line of credit is very important to us. Because we have established other lines of credit, we were able to reduce this facility from $200 million to $100 million." Currently, ABFI has, through its subsidiaries, $675 million of available credit through the following firms: -- UBS Principal Finance--$300 million -- Credit Suisse First Boston Mortgage Capital--$200 million -- MBIA/Bear Stearns--$100 million -- JPMorgan Chase Bank--$50 million -- GMAC/Residential Funding Corp.--$25 million "All of these firms have become important in helping us build our business and to achieve our goal of building shareholder value," Ruben added. American Business Financial Services, Inc. is a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services operating throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company originates business purpose loans and first and second mortgage loans through a combination of channels, including a national processing center located at its centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. operating office in Bala Cynwyd, Pennsylvania Bala Cynwyd is a village in Lower Merion Township which is located in the Main Line in southeastern Pennsylvania, bordering the western edge of Philadelphia. It was originally two separate towns, Bala and Cynwyd, but is commonly treated as a single community. , and a retail branch network of offices. For further information, contact Jeffrey M. Ruben, Executive Vice President, 610-617-5562, or Keith Bratz, VP--Corporate Communications, 610-617-7475. Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under federal securities laws. There are many important factors that could cause American Business Financial Services, Inc. and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for American Business Financial Services, Inc. and its subsidiaries' services, availability of funding, loan payment rates, delinquency and default rates, changes in factors influencing the loan securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. market and other risks identified. |
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