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Midland Loan Services Unveils New FHA Program, Expanding Both Origination & Servicing Business.

- FHA Loan Expert Barbara Sullivan To Open Pittsburgh Office -

KANSAS CITY, Mo., Oct. 6 /PRNewswire/ -- Midland Loan Services, Inc., a wholly owned subsidiary of PNC Bank Corp. (NYSE: PNC), today announced that it has added an FHA multifamily/nursing home construction and permanent loan program to its product offerings, which will expand both its loan origination and servicing lines of business. Concurrently, Midland announced that Barbara M. Sullivan has joined the company's Pittsburgh office as vice President to spearhead the initiative.

"As Midland makes strides to diversify the products and services it offers, the FHA sector provides an attractive source of new business," says Doug Danforth, chief executive officer of Midland Loan Services. "Not only will the program add new revenue on the origination side, it will also help Midland carry out plans to diversify and expand its servicing portfolio."

FHA insured loans generally have long terms, typically 40 years, which translates into higher value servicing rights. Midland currently services $2 billion in FHA loans, including a $650 million portfolio it bought in the secondary market last fall.

While Midland has been an approved FHA lender since 1994, the appointment of Ms. Sullivan will provide the experience necessary to become competitive in this niche. A 20-year industry veteran, Ms. Sullivan was formerly a vice president at Mellon Mortgage Company, a subsidiary of Mellon Bank NA in Pittsburgh, where she provided construction loans and permanent take-outs for borrowers with FHA insured loan commitments.

The U.S. Department of Housing and Urban Development (HUD) insures qualified multifamily and nursing home loans through the FHA program. Loans are originated by approved lenders and are frequently funded in the form of Ginnie Mae securities. Because FHA loans are 99% insured by HUD and 1% guaranteed by Ginnie Mae, the resulting securities trade at favorable spreads relative to other mortgage-backed products.

Midland Loan Services, Inc. is a leading originator and servicer of commercial and multifamily mortgage loans nationwide. The company originated more than $1.35 billion in commercial real estate loans for securitization in 1998, and more than $3.7 billion since 1994. Midland is also the largest servicer of commercial mortgage-backed securities (CMBS), and is highly rated as a commercial loan servicer and asset manager by Fitch IBCA and Standard & Poor's rating services. In 1998, Midland's loan servicing portfolio more than doubled, increasing to $42 billion today.

PNC Bank Corp. (NYSE: PNC), headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include Regional Community Banking, Corporate Banking, Private Banking, Mortgage Banking, Secured Finance, Asset Management and Mutual Fund Servicing.

Visit Midland Loan Services on the World Wide Web at http://www.midlandls.com and PNC Bank at http://www.pncbank.com
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Publication:PR Newswire
Date:Oct 6, 1999
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