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PLAZA HOME MORTGAGE SETS NEW LOAN PRODUCTION RECORDS

 Geographic Expansion Contributes to $1.8 Billion in New Loan
 Applications and $846 Million in Loan Originations
 SANTA ANA, Calif., Oct. 5 /PRNewswire/ -- Plaza Home Mortgage Corp. (NASDAQ: PHMC) reported today that September 1993 new loan applications increased 98 percent to a record $1.8 billion, compared with $936 million in September 1992. Loan originations in September 1993 were a record $846 million, 59 percent higher than September 1992 originations of $531 million.
 Average daily loan applications in September 1993 rose to $88 million from $66 million during the previous month, as compared to $45 million a year ago. The month-end pipeline of loans in process continues to be strong at $1.6 billion, compared to $857 million at September 1992, and $1.2 billion at August 1993.
 "Low interest rates continue to spur refinancing activity which contributed significantly to Plaza's record loan production in September," said Jack French, chairman and chief executive officer. "In addition, our national market share continues to increase as we expand geographically. New applications from outside of California represented 38 percent of total applications in September 1993.
 "Our Andover, Mass., office received 1,112 new loan applications totaling $155 million and posted originations of $61 million in September 1993. Plaza is ranked the 20th-largest mortgage loan originator in the competitive Massachusetts marketplace only nine months after opening. Our Phoenix office is ranked the fourth-largest mortgage loan originator in Maricopa County after only 17 months of operation. Further evidence of the success of Plaza's geographic expansion program is the brisk loan production in our new Chicago office with new applications of $74 million and originations of $24 million in September. This office has been open for only two months."
 French added that the company is continuing its focus on home purchase loan originations through growth of its retail channel. The company opened a retail loan origination office in Bethesda, Md., on Sept. 27, bringing the total number of retail offices to 16, up from seven in September 1992.
 As planned, on Oct. 1, 1993, the company successfully completed the transfer of its loan servicing portfolio to the new servicing operation in Albuquerque, N.M. The company previously announced the acquisition of Albuquerque-based Sandia Mortgage Corp.'s $3.3 billion loan servicing portfolio.
 Plaza Home Mortgage is a mortgage banking company specializing in the origination, sale and servicing of one-to-four-family residential mortgage loans. Plaza conducts mortgage banking activities through its 34 loan origination offices in 12 states, and is ranked the sixth- largest mortgage loan originator in California, the 18th-largest nationwide.
 For information on Plaza by FAX, Dial 800-PRO-INFO, ext. 132.
 PLAZA HOME MORTGAGE CORP.
 Operating Statistics
 (In millions of dollars)
 (Unaudited)
 Sept. 30,
 1993 1992
 Pipeline (loans-in-process) $1,649 $857
 Loan applications 1,850 936
 Avg. daily loan applications 88 45
 Loan originations
 Month-to-date:
 Wholesale 629 436
 Retail 115 65
 Correspondent 79 30
 Option One 23 ---
 Total $846 $531
 Year-to-date:
 Wholesale $4,323 $3,051
 Retail 767 529
 Correspondent 469 585
 Option One 73 ---
 Total $5,632 $4,165
 Adjusted Delinquency Ratio:
 GNMA(a) 5.38 pct 0 pct
 FNMA 1.61 pct 1.50 pct
 FHLMC 1.48 pct 1.35 pct
 Private investors(b) 1.62 pct 1.46 pct
 Total(b) 1.85 pct 1.43 pct
 Servicing portfolio,
 net of interim servicing $7.2 billion $2.6 billion
 Working days in the month 21 21
 All figures are unaudited and monthly figures may be adjusted in the reported financial statements of the company. Such financial statements 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 this release.
 (a) The company did not perform GNMA servicing prior to the Sandia acquisition and does not consider the indicated delinquency ratio unfavorable compared to other GNMA servicing portfolios.
 (b) Does not include delinquencies associated with a minor portion (currently approximately $46 million in principal amount of over $3.0 billion in aggregate servicing rights) of the recently acquired Sandia servicing portfolio. Including such portfolio, the estimated delinquency ratios for private investors and in the aggregate were 5.31 percent and 2.47 percent, respectively, as of Sept. 30, 1993. It is anticipated that the delinquencies associated with the subject portfolio will be significantly reduced upon final adjustment and settlement of the terms of the acquisition.
 -0- 10/5/93
 /CONTACT: Pam Albo, investor relations of Plaza Home Mortgage, 714-564-3002; or John Shaw (general info), 818-783-2400, Sue Caulton (analyst contact), 415-986-1591, or Regina Ryan (analyst contact), 212-661-8030, all of The Financial Relations Board/
 (PHMC)


CO: Plaza Home Mortgage Corp. ST: California IN: FIN SU:

JL-MF -- LA034 -- 9135 10/05/93 19:42 EDT
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Date:Oct 5, 1993
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