Wednesday April 1, 6:47 pm Eastern Time
Company Press Release
HomeCapital Investment Corp. Reduces Work Force
Seeks Additional Funding
AUSTIN, Texas--(BUSINESS WIRE)--April 1, 1998--HomeCapital Investment Corporation (NASDAQ Small Cap:HCAP - news; Pacific Exchange:HCI) said today that it has significantly reduced its work force and is pursuing other cost-cutting measures, while the second mortgage lender seeks additional capital.
John Ballard, chairman and chief executive, noted that the ''present situation, certainly in part, is the result of recent notification by Fannie Mae [NYSE:FNM - news] terminating our mortgage selling and servicing contract with them. We are trying to work out of the problems triggered by that action.''
The Company has sold approximately $32.4 million in mortgage-backed securities, Mr. Ballard said, ''to discharge the Company's obligation to Fannie Mae associated with those securities and help our cash flow.'' Additionally, the Company is attempting to sell approximately $10 million in FHA Title I loans currently held by its warehouse lenders to discharge those obligations and generate some cash flow.
Mr. Ballard also announced that Michael Thimmig, an executive vice president, has resigned.
CONTACT: John Ballard, President & CEO or Sherry Olson, Investor Relations Assistant, all of HomeCapital Investment Corporation, 800/486-9192. To receive copies of the company's latest news releases and SEC reports at no cost, please contact Sherry Olson at 800/486-9192.
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Contact:
HomeCapital Investment Corporation, Austin
John Ballard or Sherry Olson, 800/486-9192 |
