Improving Economy Leads to Introduction of New High-End Lending Program.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--July 9, 1997--Confirmation that the state's economy continues to improve at a rapid rate is evidenced by the introduction of a new real estate lending program aimed at the high end of the market.

Southern California-based Hawthorne Savings F.S.B. has just brought to market what may be an industry first -- a first trust deed combined with a line of credit, all in one package.

Called The Advantage Line, this lending program is targeted at homeowners with properties valued at $2.5 million or more, known in the industry as estate properties. A major feature of this new product is the fact there is no second trust deed encumbrance and the interest rate may be lower than the traditional combination of a first and second trust deed. This vehicle provides the consumer with maximum flexibility to take advantage of the financial opportunities presented by an improving economy.

"People who own homes in this price range tend to be business owners and entrepreneurial types who are ahead of the curve when it comes to recognizing the opportunities generated by an upswing in the economy," explained Howard Kirschner, senior vice president of Hawthorne's Estate Lending Group. "A resource like The Advantage Line gives them another tool to work with."

Kirschner noted that because The Advantage Line is a first trust deed they have tremendous flexibility in their qualifying criteria and loan-to-value ratios. Further, because of his organization's particular expertise in this market segment they are accustomed to making quick decisions, funding rapidly and maintaining a high degree of confidentiality.

Among the many uses Kirschner believes The Advantage Line is ideal for are additional real estate purchases, protection of existing working capital or creation of additional capital for a wide range of business purposes or investment opportunities, home improvements and educational expenses.

Hawthorne Savings is one of the fastest growing lending institutions in the $2 million plus category. In the 12-month period ending in February 1997, Hawthorne was among the Top 5 lenders in the state in this market segment. In the previous 24 months, Hawthorne has made loans on more than $300 million worth of property. The Estate Lending Group at Hawthorne is a free standing unit of the institution which focuses on the high end of the residential real estate lending market.

CONTACT: Light & Associates, Newport Beach 

Joe Anguiano or Elliot Light, 714/660-1180