ContiFinancial Corporation to purchase California Lending Group, Inc., a retail originator of home equity and home improvement loans.NEW YORK--(BUSINESS WIRE)--Oct. 15, 1996--ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ) today announced the signing of a definitive agreement to purchase 100% of the equity, subject to fulfillment of certain conditions, of California Lending Group, Inc. DBA United Lending Group. The acquisition is expected to close in the current fiscal quarter ending December 31, 1996. United Lending Group is a privately held, California headquartered, retail originator of fixed and adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. home equity and home improvement loans, with approximately 250 employees. The Group originates approximately $30 million per month of home equity loans and home improvement loans by marketing directly to consumers in 26 states primarily through targeted direct mail advertisements and telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. . ContiFinancial expects to see origination volumes grow substantially over the coming months. The Company was founded in 1990 by Larry Swartz, who will continue to serve as President and Chief Executive Officer. Mr. Swartz commented, "Our affiliation with ContiFinancial, a growing financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company, provides United Lending Group with the additional capital resources necessary to increase significantly our volume of originations, product line and geographic distribution." Scott M. Mannes, Senior Vice President of ContiFinancial, commented, "United Lending Group provides ContiFinancial with a strong, well managed and centrally operated direct mail and telemarketing retail mortgage operation, and diversifies ContiFinancial directly into home improvement originations, a rapidly growing segment of the consumer finance market." James E. Moore, President and Chief Executive Officer of ContiFinancial, added, "United Lending Group is an important addition to ContiFinancial because it diversifies the Company's home equity and home improvement production, both geographically and by source, through retail origination strategies. The acquisition of United Lending Group should over time serve to enhance significantly ContiFinancial's earnings." ContiFinancial is a consumer and commercial finance company with headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . The Company, through ContiMortgage, is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may no t be met by traditional financial institutions. In addition, ContiFinancial provides financing, securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. and bond placement services to originators of a broad range of loans, leases and receivables, including adjustable rate mortgages This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. , subprime auto loans, home improvement loans, equipment leases and multi-family and other commercial mortgage loans. Certain statements contained in this press release which are not historical fact may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under the federal securities laws. There are many important factors that could cause ContiFinancial Corporation's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. , delinquency and default rates, changes (legislative and otherwise) in the asset securitization industry, demand for ContiFinancial Corporation's services, the degree to which ContiFinancial Corporation is leveraged, its needs for financing, and other risks identified in ContiFinancial Corporation's Securities and Exchange Commission filings. CONTACT: Jerome M. Perelson Senior Vice President and Chief Financial Officer ContiFinancial Corporation (212) 207-5402 or Joseph Kist kist n. Variant of cist2. kist Noun Scot & S African a large wooden chest Kist a chest of money, hence, a store or cache of money, 1619. Vice President Edelman Financial (212) 704-8239 |
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