And some more!...
August 04, 1999 15:06
DLJdirect Launches Full Service Mortgage Program
JERSEY CITY, N.J.--(BUSINESS WIRE)--Aug. 4, 1999--
New Mortgage Program Allows Customers to Pledge Securities Instead of Cash Down Payment for Home Purchases
DLJdirect Inc. (NYSE: DIR) announced the addition of the DLJdirect mortgage program to its broad array of investment products and services. The new mortgage program, offered as part of a multi-year
strategic partnership with Donaldson, Lufkin & Jenrette (NYSE: DLJ) and Prism Financial Corporation (NASDAQ: PRFN), allows investors to access online mortgage rate quotes, prequalify and apply online
for a mortgage, and obtain other mortgage services online through www.DLJdirect.com.
DLJdirect's mortgage program combines the mortgage securities expertise of DLJ and the online mortgage origination expertise of Prism Mortgage Company, a subsidiary of Prism Financial Corporation. "Our goal is to provide the individual investor with the best tools and information available on the Internet," said Blake Darcy, Chief Executive Officer of DLJdirect. "This partnership between DLJdirect, DLJ and Prism Mortgage brings a new dimension of high level service, competitive rates, and innovative products to those who invest through DLJdirect."
DLJdirect is also introducing two innovative mortgage services that eliminate the cash down payment from residential mortgage financing. The new services, DLJdirect ACCOUNT POWER(TM) and DLJdirect FAMILY POWER(TM), will allow qualified DLJdirect customers to use their securities accounts as collateral for mortgage loans, eliminating the need to liquidate investments to generate cash for real estate down payments. Up to 100% of the value of the home can be financed without paying costly primary mortgage insurance, and qualified securities in a DLJdirect account or family member's account can be pledged as collateral in lieu of the customary cash down payment.
"We believe we will be the first online broker to enable customers to use their investment accounts to secure mortgage loans in this fashion," said Blake Darcy. "Our customers work hard for their money -
their money should work hard for them. With these new mortgage
services, our clients can keep 100% of their invested assets working for them at all times."
Qualified DLJdirect borrowers who pledge eligible securities to obtain 100% financing for themselves through the ACCOUNT POWER(TM) program or for their family members through the FAMILY POWER(TM) program will be able to keep investment portfolios intact and defer capital gains tax liability on those invested assets. Customers may continue to trade in their account as long as the required amount of equity is maintained in the account. The DLJdirect ACCOUNT POWER(TM) and FAMILY POWER(TM) program is available in fixed-rate and adjustable-rate mortgages, as well as an interest only option.
"DLJ is committed to being a leader in providing innovative products at competitive rates," added Paul J. Najarian, Senior Vice President in DLJ's Real Estate Finance Group. "We believe these programs will
enable more people with good credit and sufficient income to enjoy the benefits of home ownership earlier in life without incurring the consequences of liquidating investment portfolios to do so."
"We are excited to partner with industry leading DLJdirect and DLJ to offer this unique online mortgage service to DLJdirect's valued clients. This program is an example of Prism's ability to leverage our
flexible national lending platform to offer the best rates, best products, and best service directly to online borrowers." said Laurence E. Katz, Vice President of Electronic Commerce for Prism Mortgage.
DLJ will provide the secondary market execution for all ACCOUNT POWER(TM) and FAMILY POWER(TM) loans.
DLJdirect (NYSE: DIR) is the online brokerage subsidiary of Donaldson, Lufkin & Jenrette (NYSE: DLJ), a leading integrated investment and merchant bank serving institutional, corporate, government and
individual investors. One of America's premier online brokerage firms, DLJdirect has more than 650,000 customer accounts representing $13.3 billion in assets. For more information about DLJdirect or the
DLJdirect Loan Center refer to the company's Web site at www.DLJdirect.com.
Prism Financial Corporation is a leading national retail mortgage banking company that originated more than $8 billion in loans in 1998, making it the 11th largest retail originator in the country. Based in
Chicago, Prism is nationally licensed, with more than 1,000 loan officers in 25 states. Prism operates through more than 150 retail branches as well as through partnerships with major Internet mortgage web sites. Prism Financial's common stock trades on NASDAQ under the ticker symbol PRFN. Prism Financial's subsidiaries include Prism Mortgage Company of Chicago; Pacific Guarantee Mortgage Corp. of Point Richmond, Calif.; Mortgage Market Inc. of Lake Oswego, Ore.; First City Financial Corp. of Englewood, Colo.; and PointSource Financial LLC of Dallas, Texas.
CONTACT: Press contacts:
Linda Finnerty
DLJdirect Inc.
lfinnerty@dljdirect.com
201.413.3187
or
Investor contact:
Kevin Zuccala
Donaldson, Lufkin & Jenrette
212.892.4693
or
Jonathan Mairs
Edelman Worldwide
jonathan_mairs@edelman.com
212.704.4504
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