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PLAZA HOME MORTGAGE RELEASES ANTICIPATED YEAR-END RESULTS -- CONTINUED STRONG GROWTH SEEN IN 1993

 LOS ANGELES, Dec. 30 /PRNewswire/ -- Plaza Home Mortgage Corp. (NASDAQ: PHMC) today announced that it anticipates reporting robust 1992 fiscal year-end earnings, loan origination and servicing portfolio results.
 Plaza expects to report net income for the fiscal year ended Dec. 31, 1992, of $14.5 million to $14.7 million, an increase of approximately 58 percent compared with $9.3 million a year ago. Total loan originations are expected to advance to $5.5 billion to $5.6 billion, up approximately 47 percent from $3.8 billion in 1991.
 The company expects the size of its (Dec. 31, 1992) loan servicing portfolio to be between $2.6 billion and $2.7 billion, rising approximately $1 billion over the $1.68 billion reported the year earlier.
 Jack French, chairman and chief executive officer, said he is pleased with the strong growth across the board, reflecting the company's high associate productivity, enhancements made to loan and other information processing systems and the year's geographic expansion.
 "Strong earnings results are a paramount Plaza goal," French said. "Our goal at the first of the year was to get closer to $3 billion in the loan servicing portfolio, but we sold a slightly higher percentage of servicing rights than we had planned to meet our commitment of strong growth at the bottom line. The robust preliminary loan origination numbers affirm our growth strategies are sound.
 "If rates stay within the range we have experienced during the past two years, and we meet our goal of opening several offices in new states in 1993, we expect we will achieve record 1993 results while building our servicing portfolio.
 "Our goal is to originate between $5.5 billion and $8 billion in loans in 1993 and retain up to 50 percent of those servicing rights, up from approximately 25 percent the past two years. That should enable us to meet our overall goal of 15 percent earnings growth while increasing the servicing portfolio.
 "Plaza's growth will come through our aggressive geographic expansion, the exceptionally high productivity of Plaza associates, additional upgrading of our loan processing and servicing data processing capabilities, and a continued emphasis on our retail channel to capitalize on expected increasing sales of new and existing homes," French added.
 Plaza last month announced it was opening three wholesale offices in three new states, Seattle/Tacoma, Washington; Houston, Texas; and Massachusetts serving the five New England-area states. The offices were selected for their participation in an anticipated resurgence in home sales and are expected to be operational in the first quarter 1993.
 "Additionally," French said, "we expect a modest contribution to earnings and the servicing portfolio in 1993 from Option One, our newly formed subsidiary set up to offer mortgages to home buyers and refinance customers who we believe are creditworthy but do not fall within traditional loan qualification standards of institutional secondary purchasers. Option One, offering highly competitive, more flexible mortgage product line, will begin operations in the first quarter 1993 and should be producing positive results in the third quarter. Our goal for Option One is to originate $225 million to $250 million in loans in fiscal 1993."
 Plaza Home Mortgage is a mortgage banking company specializing in the origination, sale and servicing of one to four family residential mortgage loans. Plaza conducts mortgage banking activities through its 19 loan origination offices in four states and is ranked the eighth largest mortgage loan originator in California, the 20th largest nationwide. Plaza's savings and loan subsidiary has its single savings branch in Santa Ana, Calf.
 A key Plaza growth strategy is to expand geographically into areas of the country expected to participate in a resurgent housing lending market.
 Plaza completed its initial public offering in October 1992, selling 4,438,500 shares at $6.50.
 -0- 12/30/92
 /CONTACT: James M. Weld, president and COO of Plaza Home Mortgage, 714-564-3010; or John H. Shaw of Financial Relations Board, 818-783-2400, for Plaza Home Mortgage/
 (PHMC)


CO: Plaza Home Mortgage Corp. ST: California IN: FIN SU: ERP

JB-LS -- LA012 -- 0527 12/30/92 09:03 EST
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