BNC Mortgage Inc. Announces a Forward Sales Commitment of Subprime Loan Production.IRVINE, Calif.--(BUSINESS WIRE)--Oct. 19, 1999-- BNC (hardware) BNC - A connector for coaxial cable such as that used for some video connections and RG58 "cheapernet" connections. A BNC connector has a bayonet-type shell with two small knobs on the female connector which lock into spiral slots in the male connector when it is twisted Mortgage Inc. (Nasdaq:BNCM BNCM Bayesian Network Causal Model )("BNC") announced that it has entered into a forward sales forward sales npl → ventas fpl a término commitment for approximately $280 million of subprime loan Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. production with a New York-based investment bank. This commitment relates to loans originated between September 1999 and January 2000, with a pricing structure which includes buy-ups and buy-downs for the actual weighted average coupons Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. and margins delivered. The company has sold over $1 billion of subprime mortgage loans to this investment bank in prior periods. "We have been pleased with the execution of prior loan sales and welcome the opportunity to continue the existing relationship with this institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . The company entered into this agreement in an effort to lock-in cash premiums on mortgage loan sales through the end of calendar year 1999," said Kelly W. Monahan, president. "A key element of our strategy is to continue to sell our loan production monthly for cash and continue our status as one of the mortgage companies in the specialty finance sector that is profitable and generates positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Our ability to continue to sell our loan production for cash at favorable premiums in this market reflects the quality of our product and the strength of our company," said Peter R. Evans, chief financial officer. Except for historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended in Section 21E of the Securities Exchange Act of 1934, as amended and involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements can be identified by the use of words "anticipate," "may," "will," "expect," "when," "intend," "could," "should," "would," "remain," and "continue," or the negative or other variations thereof or comparable terminology. The company's actual results could differ materially from those anticipated in the forward-looking statements based on changes in the company's business strategy. |
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