CITYSCAPE CORP. FORMS JOINT VENTURE TO OPERATE IN UNITED KINGDOM NON-CONFORMING LOAN MARKET.

ELMSFORD, N.Y.--(BUSINESS WIRE)--May 5, 1995--Cityscape Corp., a mortgage banker specializing in non-conforming mortgage loans, will enter the largely untapped United Kingdom non-conforming loan market through a joint venture announced today. Cityscape plans to bring its experience and knowledge of the U.S. non- conforming loan marketplace to this venue through City Mortgage Corporation Limited (CMC), a new company formed in conjunction with the principals of a privately held U.K.-based mortgage banker. Cityscape will own a 50 percent equity interest in CMC.

Loan purchase commitments for the venture have been obtained from Greenwich International Ltd., an affiliate of Greenwich Capital Markets, Inc., based in Greenwich, CT.

City Mortgage Corp. will originate non-conforming mortgage loans and a wholly owned subsidiary -- City Mortgage Servicing Corporation Limited -- will handle loan servicing. These companies will conduct operations in England, Wales and Scotland, focusing on the one- to four-family non-conforming mortgage loan market.

The formation of CMC provides an opportunity for Cityscape to apply its knowledge of non-conforming lending to a new, relatively untapped market, said Cityscape President Robert Grosser. "I'd compare the U.K. non-conforming market to the U.S. market 15 years ago," said Grosser. "There is a lot of room for growth and a dearth of qualified, well-capitalized lenders serving the non-conforming borrower in the United Kingdom. Our loan purchase commitments will make available up to 1 billion ($1.6 billion) to service a potential market that includes more than 23 million homeowners in the United Kingdom." Mr. Grosser noted that CMC will use a similar strategy in the U.K. to Cityscape's U.S. approach, which centers on its originating loans through more than 300 independent U.S. brokers.

Cityscape operates in 20 states and the District of Columbia, originating loans through four branch offices as well as independent mortgage brokers. Cityscape is a mortgage banker in the business of originating, purchasing, selling and servicing mortgage loans secured by one- to four- family residences or small multi-family or mixed-use properties. Cityscape was founded in 1985 and is headquartered in Elmsford, New York. The firm is a subsidiary of Cityscape Financial Corp. (Nasdaq Electronic Bulletin Board: CTYS).

CONTACT: Robert C. Patent

Managing Director

Cityscape Corporation

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Paul Steidler, Jackie Day

Morgen-Walke Associates, Inc.

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