CITYSCAPE CORP. COMPLETES $50 MILLION MORTGAGE LOAN SECURITIZATION.ELMSFORD, N.Y.--April 5, 1995--(BUSINESS WIRE)-- Cityscape (company) CityScape - A re-seller of Internet connections to the PIPEX backbone. E-Mail: <sales@cityscape.co.uk>. Address: CityScape Internet Services, 59 Wycliffe Rd., Cambridge, CB1 3JE, England. Telephone: +44 (1223) 566 950. Corp. announced today the securitization of $50 million in home equity loan pass through certificates in conjunction with ContiFinancial Services Corporation, a subsidiary of the Continental Grain Company. This represents Cityscape's first securitization. The certificates were offered in two tranches. The $15 million Class A- 1 certificates had a weighted average life of 1.04 years with an expected final maturity of 22 months. The $35 million Class A-2 certificates had a weighted average life of 5.80 years with an expected final maturity of 192 months. Both tranches were offered at a spread to comparable Treasuries. A pool of fixed-rate first and second mortgages originated and purchased by Cityscape backs the certificates. Cityscape will continue to service the portfolio. The $50 million issue received triple-A ratings from Standard & Poor's Corporation and Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc. 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 Corp. provided a surety bond surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. which covers principal and interest payments on the certificates. "This is a very significant transaction for Cityscape as it marks the successful completion of our first securitization and the very effective use of a $60 million credit facility provided by ContiFinancial Services," said Robert Grosser, President of Cityscape. "Because securitization allows Cityscape to increase the volume of originations, it is potentially very important for our overall strategic direction. We look forward to continuing to work with ContiFinancial to explore additional opportunities in securitizing non-conforming mortgage products," said Grosser. The nonconforming segment of the market, in which loans are extended to borrowers with A minus, B, C and D credit, is one of the fastest growing markets for mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . ContiFinancial handled the structuring and placement of the certificates. Illustrating Cityscape's broad geographic reach, the pooled loans in the securitization package are drawn from 13 states, primarily on the Eastern Seaboard and in the Midwest, and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Cityscape specializes in mortgage and home equity loans for borrowers that do not meet agency lending criteria. Founded in 1985 and headquartered in Elmsford, New York Elmsford is a village in Westchester County, New York, United States. The population was 4,676 at the 2000 census. As a village, it is located in the Town of Greenburgh. The village is named after a large elm tree that once grew in the community. , the company has offices in New Jersey, Pennsylvania and Virginia. Cityscape writes loans across the country, with particular emphasis on the Northeast, Middle Atlantic, Southeast and Midwest. The firm is a subsidiary of Cityscape Financial Corp. (Nasdaq Electronic Bulletin Board: CTYS CTYS Chat to You Soon ). CONTACT: Robert C. Patent Managing Director Cityscape Corp. (914) 592-6677 or Paul Steidler, Jackie Day Morgen-Walke Associates, Inc. (212) 850-5600 |
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