Banks Expected to Continue Losing Mortgage Market Share: Mortgage Brokers and Lenders Will Close $3.2 Trillion in Loans in 2003.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 29, 2003

Leading Mortgage Provider from Vertical Lend

Comments on State of the Mortgage Industry

WHAT:   The lowest mortgage rates in 45 years has spurred an all time
        record volume of $2 trillion of mortgage loan originations in
        2002, providing financial planners, tax preparers, and
        insurance agents with ample opportunities to grow their
        businesses and support the needs of their clients. Now, with
        growing uncertainties over Federal Reserve policy and
        ballooning federal deficits, these historically low rates are
        in jeopardy. As a result, industry professionals are asking,
        What's Next?

WHO:    David Peskin, CEO Vertical Lend & Mortgage Warehouse, Peskin
        is an experienced Mortgage Broker who founded Mortgage
        Warehouse, Vertical Lend's predecessor company, in 1995 to
        provide mortgages directly to consumers. He has since built
        the company into one of the largest mortgage companies in the
        industry. Since inception, the two companies have closed more
        than $2 billion in loans and in 2002 alone, Vertical Lend
        originated over $275 million in loans. Mr. Peskin recently
        provided the following comments about the changing mortgage
        industry at the Vertical Lend 2004 Economic Forecast event:

-- "The distribution of mortgages has changed radically over the

past 25 years. In 1975, banks originated 95 percent of

residential mortgages, but have been gradually losing market

share to financial planners, tax preparers, and mortgage

brokers. We expect this trend to continue as more individuals

realize the importance of using a financial professional who

understands their complete financial picture to secure

mortgages. We expect that by 2005 financial planners,

accountants, insurance agents who have added mortgage products

to their business will account for 25 percent of loan

originations."

-- "In 2003, the refinance boom amounted to 50 percent of the

mortgage loan origination market. While we may see a drop off

in refinancing in 2004, home sales will continue to stay

strong, providing financial planners, accountants and

insurance agents with an opportunity to better serve their

clients and generate additional income."

-- "Home financing is the single largest transaction for most

Americans (68 percent own a home). By providing mortgage

products and services to their clients, financial

professionals can now tap into that market, and offer

homeowners from all economic environments ways to lower their

rates, utilize equity in their home and consolidate debt."

ECONOMIC AND MORTGAGE OUTLOOK:

Frank E. Nothaft, Chief Economist at Freddie Mac, provided the following data along with commentary and insight on the U.S. economy and mortgage industry at the recent Vertical Lend Economic Forecast:

-- Economic rebound strengthens in second half of 2003

-- GDP growth rises to 4.0-5.0% as fiscal & monetary stimulus 

kicks in

-- Inflation, interest rates remain low: 30-year FRMs average

6.0-6.5%

-- 2003 housing starts and home sales exceed 2002 levels, strong

housing sector continues to support economy

-- Sales of new or previously owned homes expected to close $8

million in 2003, out of 90 million single-family properties or

1 out of 11 homes being bought and sold