Monday September 14, 9:59 am Eastern Time
Company Press Release
First Americans Signs Exclusive Broker Agreement
With Washington Mutual Bank to Originate $20
Million of Oklahoma Native American Pilot Program
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 14, 1998--First Americans Mortgage Corp., a subsidiary of AmeriResource Technologies Inc. (OTC BB:ARET), announced Monday that they have signed an exclusive Broker Agreement with Washington Mutual Bank, Seattle, to originate $20 million of the Oklahoma Native American loan program.
The pilot program was developed in conjunction with PMI Mortgage Insurance Co. and Federal Home Loan Corp. (Freddie Mac [NYSE:FRE - news]) as a first-of-its-kind, risk-share program. Under the program the tribe actually pledges assets that may be used to help offset losses due to property foreclosure. In exchange, a tribal member receives a loan program with a small downpayment requirement and expanded credit features. The signing of this agreement will allow FAMC to expand the pilot program to two additional tribes. Those tribes have been identified and are in final negotiations with PMI Mortgage Insurance Co. and FAMC. FAMC is currently originating a $10 million commitment with the Chickasaw Nation under this program.
First Americans President Dustan Shepherd commented: ''We look forward to working with an institution of Washington Mutual's caliber. With the addition of this agreement, FAMC will have total loan guarantees of $30 million under this program. To put this agreement and its importance to FAMC and Indian Country lending in perspective, in 1997 Federal National Mortgage Corp.'s (Fannie Mae [NYSE:FNM - news]) annual Native American loan volume was approximately $25 million.
We look forward to working with additional tribes under this program, which will allow FAMC to realize a steady increase in revenue. Discussions are currently under way to explore the means to continue the expansion of the program to other Oklahoma tribes.''
Washington Mutual Bank is the nation's largest savings institution, with assets in excess of $103 billion. Currently the bank is operating in 39 states and has been recognized as a leader in residential Native American lending in the Northwest region of the United States.
The release may contain forward looking statements that involve risk and uncertainties, including without limitations, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes.
The company's dependency on financing third party suppliers and intellectual property rights, and other risks detailed from time-to-time in the company's federal filings, annual reports, offering memorandums or prospectus.
Contact:
AmeriResource Technologies Inc., Lenexa
Dustan R. Shepherd, 913/859-9505
913/859-9520 (Fax)
or
Robert Solarchik, 800/913-9767 or 954/346-5796 |
