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NORTH AMERICAN MORTGAGE COMPANY REPORTS SHARPLY INCREASED ORIGINATION AND APPLICATION VOLUME IN AUGUST

 NORTH AMERICAN MORTGAGE COMPANY REPORTS SHARPLY
 INCREASED ORIGINATION AND APPLICATION VOLUME IN AUGUST
 SANTA ROSA, Calif., Sept. 9 /PRNewswire/ -- North American Mortgage Company (NYSE: NAC), one of the nation's largest mortgage loan originators, reported today that its August 1992 loan applications of $1.904 billion set a new record for the company, and were up 147 percent over August 1991 applications of $772 million. In addition, loan originations during August 1992 reached $1.012 billion, an increase of 136 percent over the $428 million originated in August 1991. This marked the second month in 1992 in which the company's originations exceeded $1 billion.
 Improvements in August origination and application volume continue the growth trend the company has achieved throughout all of 1992. For the seven months ended Aug. 31, 1992, originations were $6.9 billion, more than 116 percent over the comparable prior year's originations of $3.2 billion. Applications for these periods increased by 107 percent to $12.2 billion, from $5.9 billion in the same period last year.
 The increased mortgage originations and application volumes reflect continuing low interest rates, as well as the company's continued increases in market share in the areas in which it operates. Refinancing volume increased to 68 percent of origination volume in August 1992, from 35 percent of origination volume in August 1991.
 John F. Farrell, Jr., chairman of the board and chief executive officer of North American Mortgage Company, stated, "We continue to be extremely pleased by our performance. Our offices have continued to demonstrate that they are very capable of handling the dramatic increase in business effectively and efficiently."
 "The decline in interest rates continues to provide a major boost to our business activities. Looking ahead, the volume of refinance loans should remain high, reflecting low interest rates, and we expect to continue to make gains in market share over our competitors."
 Terry Hodel, president and chief operating officer, added, "The increased volume occurred in all of our market areas. We are particularly pleased by the performance of our Mid-Atlantic operations, acquired in March, which successfully launched a wholesale marketing operation this past month." Loan originations in the Mid-Atlantic region increased by 55 percent in August to $85 million from $55 million in July.
 Because of continuing high originations and the declining sales of servicing rights, which represented only 14 percent of North American's August loan originations, the servicing portfolio grew to $9.573 billion in August 1992 from $8.874 billion at the end of July. For the first eight months of 1992, North American's servicing portfolio increased by $2.915 billion, to $9.573 billion at Aug. 31, 1992, from $6.658 billion at Dec. 31, 1991. This 44 percent increase compares to an increase of 17 percent or $946 million during the same period of 1991. During the same periods, servicing sales, as a percent of originations, declined to 42 percent in 1992 from 53 percent in 1991.
 Notwithstanding the increase in the size of the portfolio, servicing delinquencies decreased to 1.91 percent in August compared to 2.01 percent in July.
 North American Mortgage Company is primarily engaged in the mortgage banking business and, accordingly, originates, acquires, sells, and services mortgage loans which are principally first-lien mortgage loans secured by single family residences. It is a major originator in the California, Texas and Mid-Atlantic markets. Headquartered in Santa Rosa, Calif., the company operates 42 origination offices located in California, Texas, Maryland, Virginia, Hawaii, Colorado, and New Mexico.
 NORTH AMERICAN MORTGAGE COMPANY
 Operating Statistics
 YTD YTD
 August August August August
 1992 1991 1992 1991
 Loan Originations $1,012 $428 $6,869 $3,154
 (millions)
 Average Loan Size $139,205 $125,403 $132,458 $127,208
 Originated
 Percentage Refinance 68 pct. 35 pct. 66 pct. 43 pct.
 Originations
 Loan Applications $1,904 $772 $12,169 $5,874
 (millions)
 Owned Servicing $9,573 $6,678 -- --
 Portfolio (millions)
 Servicing Portfolio 103,956 88,197 -- --
 No. of Loans
 Average Loan Size $92,087 $75,716 -- --
 Serviced
 Servicing Delinquency 1.91 pct. 2.61 pct. -- --
 Percent (30 days & over)
 Foreclosure Percent 0.51 pct. 0.83 pct. -- --
 The above data reflects current operating statistics and does 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 which will be provided on a quarterly basis.
 -0- 9/9/92
 /CONTACT: Robert J. Gallagher, senior vice president & CFO of North American Mortgage Company, 707-523-5055, or Andrew R. Baer or Tom Davies of Kekst and Company, 212-593-2655, for North American Mortgage Company/
 (NAC) CO: North American Mortgage Company ST: California IN: FIN SU:


PS -- NY040 -- 7496 09/09/92 12:19 EDT
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Date:Sep 9, 1992
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