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MARGARETTEN FINANCIAL COMPLETES PURCHASE OF NATIONSBANC MORTGAGE COMPANY OF VIRGINIA; ANNOUNCES SEATTLE WHOLESALE DIVISION OFFICE

MARGARETTEN FINANCIAL COMPLETES PURCHASE OF NATIONSBANC MORTGAGE COMPANY
 OF VIRGINIA; ANNOUNCES SEATTLE WHOLESALE DIVISION OFFICE
 PERTH AMBOY, N.J., Sept. 2 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG) announced the completion of its previously reported purchase of NationsBanc Mortgage Company of Virginia, a residential mortgage servicing subsidiary of NationsBank Corporation (NYSE: NB). NationsBanc Mortgage Company Of Virginia (NMCV) services approximately 135,000 residential mortgages located in 49 states, the District of Columbia and Puerto Rico. As a result of the transaction, Margaretten is assuming the operation of NMCV's loan servicing facility in Richmond, Va., with over 200 employees.
 The assets of NMCV at the time of acquisition consisted of residential mortgage servicing rights and other assets, primarily receivables and escrow advances. Margaretten made an initial payment for the mortgage servicing rights of approximately $130 million, representing the amount payable for 97.5 percent of the approximately $7.6 billion of servicing rights at July 31, 1992. The final purchase price will be determined based upon the actual amount of servicing rights at Sept. 1, 1992 and certain other reductions. The initial payment for the other assets was $14 million, net of assumed liabilities, which is subject to final adjustment. The total cash transaction of approximately $144 million was financed through a combination of existing equity, derived primarily from the proceeds of the company's initial public offering in Jan. 1992, and bank financing.
 Additionally, Margaretten announced that its wholesale division has opened its fourth production office, located in the Seattle, Washington area. The new office will purchase mortgage loans from approved correspondents and mortgage loan brokers in the Pacific Northwest. The wholesale division, established in 1990 with a single office on northern California, now also operates on Southern California and Texas. Margaretten's total loan production from both the retail and wholesale sources was $3.8 billion for the first seven months of 1992.
 Commenting on the purchase of NMCV, Margaretten Chairman and Chief Executive Officer Felix M. Beck said, "This is a dramatic positive step in our strategic plan. This acquisition more than doubles our servicing portfolio, to approximately $12.5 billion. Margaretten is now among the largest residential mortgage servicers in the U.S. The greater economies of scale resulting from a much larger portfolio, and anticipated productivity benefits from a planned upgrade of NMCV's technology, should also help make us one of the most efficient servicers."
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, Inc., engages in the origination, purchase, sale and servicing of residential mortgage loans. Its retail division maintains 58 branch offices in 18 states, and its wholesale division operates primarily in California, Texas and the Pacific Northwest.
 -0- 9/2/92
 /CONTACT: Bruce Schnelwar, senior vice president & CFO of Margaretten Financial, 908-324-4183, or Michele Katz or Edward Nebb, both of Morgen-Walke Associates, 212-986-5900, for Margaretten Financial/
 (MRG NB) CO: Margaretten Financial Corporation; NationsBank Corporation ST: New Jersey, Virginia, Washing IN: FIN SU: TNM


LD-TM -- NY001 -- 5720 09/02/92 07:40 EDT
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Date:Sep 2, 1992
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