JUNE ORIGINATIONS SET RECORD LEVELS FOR AMERICAN RESIDENTIAL MORTGAGE CORP.
Company Posts Six-Month Highs for 1993 as Home Buying Accelerates LA JOLLA, Calif., July 8 /PRNewswire/ -- Citing successful market share growth and the continuing combination of low interest rates and an improving home buying environment, John Robbins, chief executive officer of American Residential Mortgage Corp., said, "The company achieved another record month in June for loan production." Total originations for the month were $824 million, up 134 percent over the $352 million in June 1992. The company, which is a wholly owned subsidiary of American Residential Holding Corp. (NASDAQ: AMRS) and one of the country's leading mortgage bankers, also announced strong six-month originations. For the six months ended June 30, 1993, the company closed $3.5 billion in loans, up 47 percent over the comparable period in 1992. Loans-in- process at the period end were $1.8 billion, 88 percent higher than one year earlier. New loan applications for the first six months of 1993 totaled $5.9 billion, an increase of 51 percent over the same period last year. In addition to strong originations at the retail and wholesale levels, the company's correspondent loan production increased to 24 percent of the June 1993 total, as compared to 3 percent in June 1992. This growth illustrates the company's success in expanding its correspondent origination channel. "Our six-month figures reflect the effectiveness of our flexible branch expansion strategy," Robbins said in releasing the figures. "We are increasing our share in existing markets and entering new areas to further diversify geographically. "Home buying clearly remains on an uptrend," Robbins continued. "While certain pockets of the country remain depressed, consumers nationwide are taking advantage of the lowest interest rates in 22 years, as well as depressed selling prices, to buy homes. This trend is reflected in the company's new home loan originations for June 1993 which increased 56 percent over June 1992. And since this is still the beginning of the summer, traditionally the peak buying season, we can look forward to increased production in the third quarter." Robbins also said that the company's record volumes, as strong as they are, do not fully reflect the addition of recently opened branches serving the Midwest. "We opened offices in Ohio, Missouri and Illinois to capitalize on favorable market conditions. These branches are expected to make a significant contribution to fourth quarter originations." American Residential Mortgage Corp., headquartered in La Jolla, has 63 branches throughout the United States. The company originates, sells and services residential mortgages. Schedule of business highlights follows. AMERICAN RESIDENTIAL MORTGAGE CORP. Business Highlights (Dollars in millions) Six Months Ended June 30, June 93 June 92 1993 1992 Loan origination (fundings): Retail $377 $190 $1,683 $1,257 Wholesale 253 153 1,266 1,063 Correspondent 194 9 539 54 Total originations $824 $352 $3,488 $2,374 Percentage refinance originations 67.7 pct 51.3 pct 68.1 pct 63.8 pct New loan applications $1,014 $489 $5,867 $3,876 As of June 30, 1993 1992 Pipeline of loans in process $1,781 $945 Owned servicing (excluding warehouse loans and subservicing) $10,269 $8,426 Delinquency ratio (30 days and over): Including RTC92-7 4.3 pct N/A Excluding RTC92-7 2.3 pct 2.3 pct Foreclosure Ratio: Including RTC92-7 0.8 pct N/A Excluding RTC92-7 0.5 pct 0.5 pct -0- 7/8/93 /EDITOR'S NOTE: The above operating statistics do not constitute all factors impacting the quarterly and annual financial results of the company. All figures above are unaudited and may be adjusted in the reported financial statements of the company, which are 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 its release./ /CONTACT: Judy Berry, CFO, 619-535-4425, or Kasey Emmel, media relations, 619-535-4310, both of American Residential Mortgage/ (AMRS)
CO: American Residential Mortgage Corp. ST: California IN: FIN SU:
LM-JL -- SD003 -- 9383 07/08/93 09:30 EDT
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|Date:||Jul 8, 1993|
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