Credit Depot Corporation announces increased mortgage sale commitment, lending facility, and advance rate.GAINESVILLE, Ga.--(BUSINESS WIRE)--Dec. 07, 1995--Credit Depot Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LEND) announced today that it had secured a commitment subject to documentation to expand its relationship with its major investment banking institution. The agreement now calls for Credit Depot to sell the greater of all of its first mortgage, residential loan production through December 31, 1999 or $500,000,000 (previous levels were $300 million through December 31, 1997). It also provides for an expanded lending facility beyond the present $10,000,000 "repo Repo An agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. See: Repurchase agreement. repo See repurchase agreement (RP). line" provided by the institution and increases the advance rate from 90% of the face amount of the loans to 95%, with a reduction in the interest rate charged by the institution. Credit Depot's management stated, "These modifications are significant to Credit Depot in that they provide additional available capital with which to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. and hold loans for its pending 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. program and it further demonstrates the commitment and relationship between Credit Depot and this investment banking institution." Credit Depot is a multi-state 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 that provides residential, real estate financing to individuals unable to secure loans through conventional sources. The Company currently originates loans through its offices in Florida, Georgia, Indiana, Ohio, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Missouri, and Tennessee. These loans are collateralized by first mortgages, primarily on owner-occupied residential properties. CONTACT: Credit Depot Corporation, Gainesville Gerald F. Sullivan, 770/531-9927 |
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