American Residential Funding, Inc. Poised to See Significant Growth in 2005 With Consolidating Landscape.COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif. -- Vincent Rinehart, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Residential Funding, Inc., (AMRES) (Pink Sheets: ARFG), a nationwide mortgage banking and brokerage firm, began trading as a publicly held company on December 20, 2004. Mr. Rinehart stated: "Now that we are publicly traded, we will have the ability to enhance our brokerage and banking business via acquisitions, and increase the percentage of our loans directly banked, increasing our margins." Currently AMRES is a nationwide mortgage banker Mortgage Banker A company, individual or institution that originates, sells and services mortgage loans. Notes: Don't confuse a mortgage banker with a mortgage broker. and broker licensed to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. loans in over 30 states from over 90 branch locations. They are entering their seventh year in business. Total monthly loan production has been averaging over $130,000,000, comprising of over 600 closed home loans per month. Home loans are approximately 60% refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. and 40% purchase loans. AMRES does not anticipate a significant drop in business as rates rise, since most of the refinances are not interest rate sensitive. Approximately 25% of the loans are considered "ALT-A" and "SUBPRIME", while over 80% are various types of ARM loans. The Branch Network consists of corporate and "NET" Branches. The "NET" Branches are joint ventures with managers, wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. AMRES receives a per-loan fee, and the Manager earns the profit. Corporate Branches include four retail offices and several Joint Relationships, wherein AMRES participates in the profits of the branch. Brokered loans earn AMRES a fee, averaging $450. When loans are run through the banking division, revenue per loan averages $2,000. AMRES Mortgage Banking, a division of AMRES, provides mortgage banking to the branch network. AMRES Mortgage Banking is in the process of establishing relationships with other mortgage brokers to which AMRES will underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. and fund their loans. Currently AMRES Mortgage Banking is funding $10,000,000 per months (about 30 loans), of which 90% is being sold to the AMRES correspondent lender Countrywide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Funding. It is anticipated that Banking should be at $30,000,000 per month by the second quarter of 2005. Business Expansion: As an update to shareholders the following three areas will be a focus in 2005 to drive revenues. --AMRES MORTGAGE BANKING --AFFINITY GROUPS/JOINT VENTURES --NEW BRANCHES AMRES Mortgage Banking: With an existing $10,000,000 warehouse line, and key buyers of AMRES' loans (COUNTRYWIDE, SAXON Saxon Any member of a Germanic people who lived along the Baltic coast in ancient times and later migrated west as far as the British Isles. The Saxons became pirates in the North Sea during the decline of the Roman empire, and in the early 5th century they spread through , IMPACT), AMRES Mortgage Banking is aggressively seeking loans from their own Branch Network production. The goal by Spring, 2005, is to close $30,000,000 per month in loans, of which 1/3 will be third party loans. This two fold increase in directly banked loans will have a very positive effect on our margins and cash flow. Affinity Groups/Joint Ventures: --GUNN ALLEN HOME LOANS - ESTABLISH BRANCH JV --REALTOR RELATIONSHIPS --AMER. UNION HOME LOANS --BUILDER DIVISION --CONSUMER DIRECT --JV/MORTGAGE FIRMS With our continued marketing efforts and strong industry reputation we will look to build brand awareness in AMRES by opening new branches in our core markets and acquiring substantial loan flows with targeted acquisitions of key agents in the industry. AMRES will remain a majority owned subsidiary of Anza Capital, Inc. (AZAC.OB) The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its 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. are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to successful performances of internal plans, the impact of competitors, and general economic risks and uncertainties. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion