HomeGold & Affinity Announce Joint Venture to Originate Conforming Mortgage Loans
HomeGold & Affinity Announce Joint Venture to Originate Conforming Mortgage
Dec 19, 2000 03:08 PM ET PR Newswire
GREENVILLE, S.C., Dec 19, 2000 /PRNewswire via COMTEX/ -- HomeGold Financial,
Inc. (OTC Bulletin Board: HGFN) and Surety Mortgage, Inc. announced today the
formation of a joint venture to originate conforming loans. Surety, a
subsidiary of Affinity Technology Group, Inc. is a conforming mortgage lender,
primarily utilizing user friendly, proprietary technology through Community
HomeGold is a non-conforming lender licensed in 44 states. Leads are primarily
generated through direct mail, telemarketing, and limited radio and television.
A significant percentage of these leads warrant higher credit loans than
HomeGold's normal programs.
In this relationship, Surety will take selected HomeGold leads, and underwrite
and process them for a conforming opportunity. Surety may also ask HomeGold to
underwrite and process leads which Surety generates which do not qualify for
Surety conforming products.
Mr. Ronald J. Sheppard, HomeGold's CEO, said, "This is a very unique and
significant opportunity to take large numbers of paid for leads, which
traditionally cannot be converted, and develop incremental loan origination
volume. Based on initial samples of our turn down loans, it appears that a
significant percentage may qualify. This relationship with Surety allows us to
move forward quickly without having to identify and recruit a processing and
Mr. Joe Boyle, President and CEO of Affinity, said, "We are very excited about
this arrangement. It is a significant opportunity to leverage the unique back
office operating capabilities we have built at Surety. This is a win-win deal
that we expect will improve our revenue generating capabilities while providing
HomeGold with the ability to convert and close additional loan applications."
HomeGold Financial, Inc. is a financial services company, which originates,
services, and sells non-prime first and second lien residential mortgage loans
in sub-prime mortgage industry. HomeGold Financial, Inc. is licensed in 44
states across the US, and currently operates call centers in Greenville, SC,
Lexington, SC and eight branch offices in the Southeast US.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: From time to time the Company may publish forward-looking statements
relating to such matters as anticipated financial performance, business
prospects and similar matters. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a variety of factors
could cause the Company's actual results and experience to differ materially
from the anticipated results or other expectations expressed in the Company's
forward-looking statements. The risks and uncertainties that may affect the
operations, performance and results of the Company's business include the
following: lower origination volume due to market conditions; inability to
achieve desired efficiency levels; higher losses due to economic downturn or
lower real estate values; loss of key employees; negative cash flows and
capital needs; delinquencies and losses in securitization trusts; right to
terminate mortgage servicing and related negative impact on cash flow; adverse
consequences of changes in the interest rate environment; prepayment risk;
credit risk, including deterioration of creditworthiness of borrowers and risk
of default; risk of adverse changes in the secondary market for mortgage loans;
dependence on funding sources; dependence on broker network; competition;
timing of loan sales; economic conditions; contingent risks; government
regulation; adverse impact of lawsuits; losses due to breach of representation
or warranties under previous agreements; and lower than anticipated loan
origination fees. For more complete information concerning factors which could
affect the Company's financial results, reference is made to the Company's
registration statements, reports and other documents filed with the U.S.
Securities and Exchange Commission.
SOURCE HomeGold Financial, Inc.
CONTACT: William E. Long, Jr., of HomeGold Financial, Inc., 864-289-5363, or
e-mail, [email protected] (HGFN)
(C) 2000 PR Newswire. All rights reserved.
KEYWORD: South Carolina INDUSTRY KEYWORD: FIN SUBJECT CODE: JVN OTC