Successful Test Leads to So Cal Introduction of New Residential Loan Program.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--Aug. 18, 1997--Following successful test marketing of a new real estate lending instrument aimed at the high end of the residential market, the Estate Lending Group of Hawthorne Savings, F.S.B., Monday announced it will introduce this new loan program throughout Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Called "The Advantage Line", the program is a first trust deed A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. combined with a line of credit all in one package -- without an underlying second trust deed. It is believed to be an industry first in California. The Advantage Line is targeted at homeowners with properties valued at $2.5 million or more, known in the industry as estate properties. Without the encumbrance A burden, obstruction, or impediment on property that lessens its value or makes it less marketable. An encumbrance (also spelled incumbrance) is any right or interest that exists in someone other than the owner of an estate and that restricts or impairs the transfer of the estate or of a second trust deed, the interest rate for this program 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 Upswing An upward turn in a security's price after a period of falling prices. 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 and our test marketing indicates that there is a demand for this type of tool." The Advantage Line was test marketed earlier this summer in Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. counties. 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 Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. . Further, owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de Hawthorne Savings' 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 five lenders in the state in this market segment. In the previous 24 months, Hawthorne has made loans on more than $300 million worth of estate properties. 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. To meet its clients' needs, the Estate Lending Group frequently teams up with pre-qualified mortgage broker professionals throughout Southern California. These financing sources have been updated on The Advantage Line. CONTACT: Light & Associates Joe Anguiano or Elliot Light, 714/660-1180 |
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