Cal Fed-Glen Fed Merger: Just Right for California Dreams of Home Ownership.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 11, 1998--Home buyers throughout California and Las Vegas and Reno, Nevada will find it easier to make their dreams of home ownership become a reality as a result of the merger of California Federal Bank FSB (Cal Fed) with Glendale Federal Bank.

With $52 billion in assets, the combined thrift will be the largest California-based thrift and the second-largest thrift in the nation.

Cal Fed and its mortgage loan subsidiary, First Nationwide Mortgage Corporation, which does business under the name of Cal Fed Lending in California and Nevada, are committed to opening new doors to home ownership to home buyers throughout the state.

"The merger now gives Californians easier access to all of our mortgage loan programs," said Walter C. Klein, Jr., president and chief executive officer of First Nationwide/Cal Fed Lending.

Customers will now find more than 350 Cal Fed branches throughout California, plus the services of 160 mortgage loan professionals who are available to give consumers face-to-face counseling. In addition, Cal Fed gives consumers the convenience of applying for a mortgage loan by telephone, fax and mail with the mortgage loan professionals at the Loan by Phone Center at 800/246-5495.

"Cal Fed Lending is California's home-state mortgage lender. Our customers appreciate knowing that their lender really understands and cares about their special needs," said Klein. "We are truly the mortgage lender that is just right for California," he added.

"With additional branch offices and mortgage loan officers dedicated to serving the special needs of Californians, especially those who live in low- and moderate-income areas, we'll be better able to reach our goal of increasing the percentage of home owners and contributing to the revitalization of these areas," said Klein.

"Our goal is to expand home buying opportunities to those who otherwise might not be eligible by offering unique mortgage loan programs that help overcome the barriers to home ownership," Klein added.

Cal Fed Lending provides a variety of affordable mortgage loans that are specially tailored to the needs of first-time home buyers and residents of low- and moderate-income neighborhoods.

One of these programs is the Home Run Program, which allows smaller down payments and the down payment can be a gift. The Grand Slam Program helps increase home ownership by using less traditional guidelines to evaluate applicants. Applicants for these two programs must have an income that does not exceed 100% of the HUD Median Income or a California HUD Median Income of 140%.

Home on Time is a new refinance program that helps current home owners more easily take advantage of today's lower interest rates. This program is also available in low- and moderate-income census tracts anywhere in the United States.

With the merger, customers will also have increased access to the other innovative programs offered by First Nationwide/Cal Fed Lending, including their Portfolio Plus Adjustable Rate Mortgages (ARMs). These ARMs reward customers who have maintained an excellent credit history with attractive interest rates and a combination of great features.

These include loan to values (ratios of the mortgage amount in relationship to the property's appraised value) up to 95% on mortgage loans up to $300,000, with stated income and limited documentation. Portfolio products are ideal for people who are self-employed, retired, salaried or who have complicated financials.

Another popular program is the Prepayment Option, which provides customers with additional opportunities to lower the cost and monthly payments of their mortgage loans. For more information on First Nationwide/Cal Fed Lending's programs, consumers can visit a mortgage loan professional at the nearest Cal Fed branch.

CONTACT: First Nationwide Mortgage Corp.

Diane DeMarco, 301/696-4933