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MARGARETTEN FINANCIAL REPORTS FEBRUARY SOURCES OF PRODUCTION AND LOAN APPLICATION ACTIVITY; ANNOUNCES ANNUAL MEETING DATE

 PERTH AMBOY, N.J., March 8 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported sources of production and loan application activity for the month ended Feb. 28, 1993.
 Loan applications received during February 1993 totaled $1.0 billion, up more than 48 percent from $696 million in February 1992 and increasing 84 percent from $562 million in January 1993. Retail applications in February 1993 totaled $697 million, of which 41 percent were refinances, as compared to $560 million in February 1992, with refinances equal to 29 percent. Wholesale loan applications for the recent period totaled $335 million, as compared to $136 million in February 1992.
 Total sources of production for February 1993 equaled $391 million as compared to $623 million produced in February 1992. Total sources of production include retail closings and wholesale and correspondent purchases.
 Retail closings amounted to $277 million, or 71 percent of the total for February 1993, compared with $497 million, or 80 percent of total sources of production for the same month of 1992. Approximately 31 percent of the retail closings were refinances of existing mortgages, down from 60 percent in February 1992. Wholesale loan production in February 1993 totaled $68 million or 17 percent of total sources of production, versus $102 million or 16 percent for the year-ago period. Correspondent purchases equaled $46 million or 12 percent of total sources of production in February 1993, as compared to $24 million or 4 percent of total sources of production in February 1992.
 Margaretten's servicing portfolio at Feb. 28, 1993 was $14.8 billion, compared to $4.4 billion at Feb. 29, 1992. At Feb. 28, 1993 the servicing portfolio had a weighted average coupon of 8.90 percent as compared to 9.46 percent one year prior.
 Felix M. Beck, chairman and chief executive officer, stated, "Consistent with expectations, closings of retail and wholesale loans in February 1993 reflected the typical seasonal pattern in loan application activity between November 1992 and early January 1993. Closings in February 1992 were unusually high for that time of year as a result of the very strong levels of refinance activity in December 1991 and, particularly, January, 1992."
 "The continued downward trend in interest rates commencing in late January and continuing into February has resulted in a dramatic pick-up in refinance activity and a moderate increase in home purchase applications over a year ago, and a significant increase over the prior month. Total loan application volume increased 48 percent in February 1993 from the prior year. Retail refinances represented 41 percent of total retail applications in February 1993, as compared to 29 percent in February 1992 and 28 percent in January 1993. Home purchase applications increased to $413 million in February from $396 million in February 1992."
 Separately, Margaretten said it elected to change its method of presentation for certain fees and expenses under FAS 91 to the method followed by most other public mortgage banking companies. The new method will have no effect on pre-tax income or net income for 1992 or subsequent periods. Under the new method Margaretten will report certain fees and expenses on a net basis. The new method, which will be applied retroactively, will have the effect of reducing, by an equal amount, gross revenue and expenses reported in prior periods.
 Margaretten also announced that Wednesday, May 26, 1993 has been set as the date of the company's annual meeting of stockholders. The meeting will be held at 9:30 A.M. at the Renaissance Hotel, 3 Tower Center Boulevard, East Brunswick, N.J. Stockholders of record as of March 29, 1993 will be entitled to receive notice of and vote their shares at the annual meeting.
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, Inc., engages in the origination, purchase, sale and servicing of residential mortgage loans. Its retail division maintains 64 branch and satellite offices in 18 states, and its wholesale division operates primarily in California, Texas, Arizona, the Pacific Northwest and Georgia.
 MARGARETTEN FINANCIAL CORPORATION
 Monthly Operating Statistics
 Feb. Feb. Jan.
 1993 1992 1993
 Total Sources of Production
 ($ millions) $ 391 $ 623 $ 643
 Retail Closings 277 497 321
 Percentage Refinance (percent) 31 60 33
 Wholesale Purchases 68 102 58
 Correspondent Purchases $ 46 $ 24 $ 264
 Average Loan Size $113,000 $123,000 $113,000
 Total Loan Applications(Units) 8,362 5,858 4,705
 Retail 6,121 5,056 3,819
 Percentage Refinance (percent) 40 30 28
 Wholesale 2,241 802 886
 Total Loan Applications($ Millions) $ 1,032 $ 696 $ 562
 Retail 697 560 425
 Percentage Refinance (percent) 41 29 28
 Wholesale $ 335 $ 136 $ 137
 Average Loan Size $123,000 $119,000 $119,000
 Servicing Portfolio
 Amount($ Millions) $ 14,837 $ 4,439 $ 14,642
 Units 210,570 57,044 209,255
 Delinquencies (percent) 4.84 4.16 5.14
 Foreclosures (percent) 1.23 0.83 1.15
 Weighted Average Interest Rate (percent) 8.90 9.46 8.93
 NOTE: Margaretten Financial Corporation is engaged in residential mortgage banking. The preceding data reflect current operating statistics and do not constitute all factors impacting the quarterly and annual financial results of the company. All figures are unaudited and monthly figures may be adjusted in the reported financial statements of the company, which will be 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 this release.
 -0- 3/8/93
 /CONTACT: Michele Katz or Edward Nebb of Morgen-Walke Associates, 212-986-5900, for Margaretten Financial/
 (MRG)


CO: Margaretten Financial ST: New Jersey IN: FIN SU: ERN

LD -- NY009 -- 3794 03/08/93 08:02 EST
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