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AMERICAN RESIDENTIAL MORTGAGE CORP. $250 MILLION SENIOR SHELF RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 30 /PRNewswire/ -- American Residential Mortgage Corp.'s (AMRS) $250 million shelf registration for senior debt is rated 'BBB' by Fitch. Also, the company's $270 million commercial paper program is rated 'F-2.' AMRS is a wholly owned subsidiary of American Residential Holding Corp. Senior debt will be used for general corporate purposes and commercial paper will be used to fund mortgage loan production. The credit trend is improving. The ratings reflect the company's sound balance sheet, strong retail franchise, and experienced management. Offsetting these positives are the company's rapid growth and cyclical business nature.
 Based in La Jolla, Calif., AMRS is a mortgage banker with close to 70 percent of its servicing portfolio comprised of FNMA/FHLMC loans. The company was capitalized with $74 million in equity raised from its parent's initial public offering in August 1992 and second offering in April 1993. Although the company has operated under various ownerships since inception in 1983, senior management has remained essentially the same.
 For 1993's first six months, AMRS originated $3.5 billion of mortgage loans, broken down into 48 percent retail, 37 percent wholesale, and 15 percent correspondent. Currently, the company operates in 24 states through 79 offices. The retail network is a source of strength for the company as its production continues to cover the high runoff from its servicing portfolio in the current low interest rate environment. To further diversify and strengthen its origination sources, AMRS is continuing to selectively expand its three production networks. AMRS continues to sell a sizable portion of its originated servicing to offset its production and expansion costs. However, going forward, AMRS's strategy is to build its servicing portfolio, which nearly doubled to over $10 billion during the past 18 months.
 The company maintains a highly liquid balance sheet with the majority of its assets, mortgage loans, sold forward to FNMA and FHLMC. Servicing assets are reflected conservatively on the balance sheet at 53 basis points as of June 30 ,1993, leaving the company with considerable off balance sheet value. Adjusted leverage was reduced to 3.09 times at June 30, 1993 from 4.90 times prior to its initial equity offering in August 1992. Funding sources will become further diversified with the proposed debt offerings and leverage is expected to remain moderate.
 The company has benefited from the declining interest rate environment, resulting in high mortgage loan refinancing over the past two years. Net income was $13.8 million for 1993's first six months and $19.7 million for all of 1992, with the majority of revenues generated from servicing sales and loan origination fees. Revenue from servicing, which contributed 20 percent of net revenues for the first six months of 1993, is expected to increase as a percent of net revenue as the company builds its servicing portfolio.
 -0- 9/30/93
 /CONTACT: Teri Seelig, 212-908-0638 or Felix Huang, 212-908-0621, both of Fitch/


CO: American Residential Mortgage Corp. ST: California IN: FIN SU: RTG

WB -- NY110 -- 7488 09/30/93 16:52 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
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