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DIRECTORS MORTGAGE ANNOUNCES NEW HOMEOWNER LOAN PROGRAM; THREE PERCENT CASH DOWN, NO INCOME CAP, CAN HELP ACHIEVE AMERICAN DREAM

 DIRECTORS MORTGAGE ANNOUNCES NEW HOMEOWNER LOAN PROGRAM; THREE


PERCENT CASH DOWN, NO INCOME CAP, CAN HELP ACHIEVE AMERICAN DREAM
 Program to Stimulate Home Sales in Western States
 RIVERSIDE, Calif., Aug. 17 /PRNewswire/ -- Directors Mortgage Loan Corp., one of the nation's largest mortgage originators, announced the immediate availability of a program that requires only a three percent cash down payment by the buyer on a 95 percent LTV (loan-to-value) on loan amounts up to $200,000, thus breaking one of the biggest barriers to the American dream of home ownership. Called the "Platinum Plus" FirstHOME program, the seller or builder would contribute another two percent to create the five percent down payment.
 This program is being exclusively offered by Directors Mortgage through a pilot program in California, Arizona, Oregon, Washington, Nevada, Colorado and Utah. "Platinum Plus" FirstHOME may be used in conjunction with the proposed $2,500 first-time home-buyer tax credit currently under consideration by the U.S. Senate of the $5,000 tax credit supported by the current administration.
 "In today's economy it has become increasingly difficult for many Americans to save the cash required for a down payment under most consumer loan programs," said Raymond Crebs, president and chief executive officer of Directors Mortgage. "We estimate that there are hundreds of thousands of prospective first-time homeowners who, until the availability of 'Platinum Plus' FirstHOME, have been unable to take advantage of the current, low-mortgage interest rates."
 Unlike existing programs currently available, Directors' "Platinum Plus" FirstHOME has no upper income limits (most others cap at 120 percent of median income) and the seller's 2 percent contribution to the down payment places no encumbrance on the buyer, such as requiring an additional 2 percent loan from a non-profit or government agency or the buyer arranging for a "gift" from a family member.
 "The objective of this new program is three-fold," according to Crebs. "First, to substantially increase the number of Americans that can now afford to purchase their first home. Second, to help stimulate the stagnant economy through the movement of real estate and thereby provide incentives for new
housing starts. And third, to reinforce Directors' position as one of the fastest growing, stable, yet creative mortgage originators in the nation."
 Under this program, home loan amounts may range from $50,000 to $200,000, but loans between $50,000 and $80,000 require a 3.5 percent down payment by the buyer, while loans above $80,000 require only a 3.0 percent down payment by the buyer.
 Features of the "Platinum Plus" FirstHOME first-time homeowner program include:
 -- Thirty year, fixed-rate mortgage reflecting the current lending rate.
 -- Requires only a 3 percent cash down payment by the buyer for a 95 percent LTV.
 -- No upper limit on the buyer's income level.
 -- Seller/builder contributes 2 percent cash to the down payment, creating an immediate cash equity of 5 percent for the buyer, while an additional 1 percent contribution may come from the seller/builder to be applied toward closing costs.
 -- Available on loan amounts up to $200,000 for single family residences, town homes and condominiums.
 -- Lender provides a "no-cost" purchase.
 To qualify for the "Platinum Plus" FirstHOME program, the prospective buyer need only demonstrate the ability to meet the 3 percent down payment, attend a convenient 3-hour home buyers' counselling meeting conducted by Directors Mortgage, and meet the standard income requirements to qualify for the monthly loan payment.
 To meet the loan qualification, prospective buyers should show that their long-term debt does not exceed 38 percent of their monthly gross income. Long-term debt includes the estimated mortgage payments, taxes, insurance and other revolving or installment debt.
 Interested buyers can pre-qualify by contacting any of Directors Mortgage's 53 retail offices in the seven western states or by calling 800-338-8601. The special toll-free 800 number will be staffed between 8 a.m. and 8 p.m. PDT. Directors' branch offices are located throughout the seven western states, as well as in Illinois, Kansas, New Jersey, North Dakota and Virginia.
 Headquartered in Riverside, Directors Mortgage is a privately- owned mortgage banking firm servicing 64,924 loans totalling $7.1 billion and has originated more than $3.66 billion in loans during the first half of 1992.
 One of the fastest growing mortgage banking firms in the nation, Directors is on pace to more than double the amount of loans originated in 1991 and has vaulted from the 19th to the nation's 15th largest mortgage originator during the past year.
 Founded in 1964, Directors owns and operates, in addition to Directors Mortgage Loan Corp., several subsidiaries to assist in providing services to the home buyer, the builder and the real estate community. Subsidiaries include Courtesy Funding, Stan Shaw Corp., Allmark Inc. and Directors Insurance Service.
 -0- 8/17/92
 /CONTACT: Robert R. Garman of Directors Mortgage, 714-784-4830, or Rolf C. Rudestam, of the Rudestam Group, 714-721-6960, for Directors Mortgage/ CO: Directors Mortgage Loan Corp. ST: California IN: FIN SU: PDT


JB-LS -- LA003 -- 0403 08/17/92 10:00 EDT
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Date:Aug 17, 1992
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