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MARGARETTEN FINANCIAL REPORTS STRONG LOAN PRODUCTION FOR THE MONTH OF MAY

 PERTH AMBOY, N.J., June 8 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported loan production activity for the month ended May 31, 1993.
 Total sources of production for May 1993 equaled $904 million, a 92 percent increase over May 1992 production of $470 million. Total sources of production include retail closings and wholesale and correspondent purchases.
 Loan applications received during May 1993 totaled $881 million, an increase of more than 44 percent over May 1992 loan applications of $611 million. Retail applications in May 1993 totaled $649 million, of which 37 percent were refinances, as compared to $465 million in May 1992, with refinances equal to 18 percent. Wholesale loan applications for the recent period totaled $232 million, a 59 percent increase over May 1992 wholesale loan applications of $146 million.
 Retail closings amounted to $610 million, or 67 percent of the total for May 1993, compared with $386 million, or 82 percent of total sources of production for the same month of 1992. Approximately 51 percent of the retail closings were refinances of existing mortgages, as compared to 21 percent in May 1992.
 Wholesale loan production in May 1993 totaled $248 million or 27 percent of total sources of production, versus $84 million or 18 percent for the year-ago period. Correspondent purchases equaled $46 million in May 1993. There were no comparable correspondent purchases in May 1992.
 Margaretten's servicing portfolio at May 31, 1993 was $14.9 billion, compared to $5.1 billion at May 31, 1992. At May 31, 1993 the servicing portfolio had a weighted average coupon of 8.74 percent as compared to 9.17 percent one year prior.
 Felix M. Beck, chairman and chief executive officer, stated, "Both production and loan application activity were very strong during the month of May. Retail production and wholesale purchases were up sharply. Loan application activity followed a similar pattern with retail applications increasing 40 percent and wholesale loan application volume rising 59 percent as compared to May 1992."
 Mr. Beck further commented, "Margaretten is completing a $150 million note offering. We expect to use a portion of the proceeds to prepay some of the company's outstanding bank debt. In addition, the proceeds will be available for general corporate purposes including possible acquisitions."
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, Inc., engages in the origination, purchase, sale and servicing of residential mortgage loans. Its retail division maintains 64 branch and satellite offices in 18 states, and its wholesale division operates primarily in California, the Pacific Northwest, Texas, Arizona and Georgia.
 MARGARETTEN FINANCIAL CORPORATION
 Monthly Operating Statistics
 Period Ended May May April
 1993 1992 1993
 Total Sources of Production
 ($ Millions) $ 904 $ 470 $ 1,181
 Retail Closings 610 386 601
 Percentage Refinance (percent) 51 21 52
 Wholesale Purchases $ 248 $ 84 $ 272
 Correspondent Purchases 46 0 308
 Average Loan Size 114,000 116,000 118,000
 Total Loan Applications (Units) 7,557 4,979 10,635
 Retail 5,797 4,170 7,770
 Percentage Refinance 38 17 42
 Wholesale 1,760 809 2,865
 Total Loan Applications
 ($ millions) $ 881 $ 611 $ 1,243
 Retail 649 465 871
 Percentage Refinance (percent) 37 18 41
 Wholesale $ 232 $ 146 $ 372
 Average Loan Size $117,000 $123,000 $117,000
 Servicing Portfolio
 Amount ($ Millions) $ 14,853 $ 5,057 $ 14,673
 Units 207,960 62,026 207,568
 Delinquencies (percent) 3.92 3.68 3.62
 Foreclosures (percent) 1.25 0.76 1.21
 Weighted Average Interest
 Rate (percent) 8.74 9.17 8.82
 NOTE: Margaretten Financial Corporation is engaged in residential mortgage banking. The preceding data reflect current operating statistics and do not constitute all factors impacting the quarterly and annual financial results of the company. All figures are unaudited and monthly figures may be adjusted in the reported financial statements of the company, which will be provided by the company quarterly. The company makes no commitment to update this information for changes in circumstances or events which occur subsequent to the date of this release.
 -0- 6/8/93
 /CONTACT: Michele Katz, or Joel Herskovits both of Morgen-Walke Associates, 212-850-5600, for Margaretten Financial Corporation/
 (MRG)


CO: Margaretten Financial Corporation ST: New Jersey IN: FIN SU:

LD -- NY004 -- 6359 06/08/93 08:02 EDT
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Date:Jun 8, 1993
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