American Business Financial Services, Inc. Announces Two Mortgage Loan Warehouse Facilities Totaling $450 Million.Business Editors PHILADELPHIA--(BUSINESS WIRE)--Oct. 15, 2003 New Credit Facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities Fund Loan Origination 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. Business; Company Prepared to Pursue Business Plan 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ABFI) today announced that it has closed two new mortgage loan warehouse facilities totaling $450 million. The first is a one-year $200 million mortgage loan warehouse facility with a major national financial institution. The second, from another major financial institution, is a three-year $250 million mortgage loan warehouse facility. "We believe that the completion of these transactions represents significant positive steps as the Company executes a business model that has been adjusted in response to market conditions," said Albert W. Mandia, Executive Vice President and Chief Financial Officer of ABFS ABFS American Business Financial Services, Inc. ABFS ABF Freight Systems, Inc. ABFS Alpaca Breeders Fiber School ABFS Atchafalaya Basin Floodway System (Louisiana) ABFS Advance Benefit Funding Sources . "As we previously reported, we are altering our business focus from a company that originated loans primarily for large publicly underwritten securitizations, to a company that originates and sells whole loans, or executes smaller public or private securitizations. These two warehouse facilities will accelerate that process and are important steps in adjusting our business model." Mandia continued, "We are very pleased that one of these new facilities continues a long-standing business relationship. At the same time, it is exciting that the second facility represents a significant new business relationship for us." ABFS has also recently expanded its product line to include adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. and other home equity products as part of its stated goal of focusing on origination and sale of loans. From July 1 through September 17, 2003, the Company has completed the sale of $482.9 million in loan sales under agreements with various buyers. Additionally, ABFS plans to relocate more than 100 employees to its Center City location within the next several months. This press release should be read in conjunction with recent American Business Financial Services filings made with the Securities and Exchange Commission, including current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the SEC on September 25, 2003 and October 15, 2003, which will provide additional information regarding these credit facilities and the Company. 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 company operating predominantly in the eastern and central portions of 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 primarily originates, sells and services home equity and business purpose 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 Philadelphia, Pennsylvania, a regional processing center in Roseland, New Jersey. The Company also processes and purchases home equity loans from other financial institutions through its Bank Alliance Services program. For further information, contact Albert W. Mandia, Executive Vice President and Chief Financial Officer, 215-940-4504, or Keith Bratz, VP--Corporate Communications, 215-940-4525. Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements 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 in American Business Financial Services, Inc.'s Securities and Exchange Commission filings. |
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