Press Release 2-23-99
Rock Financial and Michigan National Announce Joint
Venture to Provide Residential Mortgage Loans
PR Newswire - February 23, 1999 09:15
Home Loans Available Through 192 Michigan National Branches, New Internet Web Site and
State-Of-The-Art Call Center.
BINGHAM FARMS and FARMINGTON HILLS, Mich., Feb. 23 /PRNewswire/ -- Rock
Financial Corporation (Nasdaq: RCCK), a leading provider of retail mortgages, and Michigan
National, one of Michigan's premier financial services companies, announced that they have
formed a new strategic alliance. The new joint venture, called Rock Home Loans @ Michigan
National, is a limited liability company that will deliver a full range of residential mortgage products
to Michigan National's 450,000 customers through its 192 financial centers and a variety of other
channels.
"This exciting joint venture will combine Rock Financial's expertise in finance-related marketing,
technology and sales with Michigan National's extensive branch system and loyal customer base,"
said Daniel Gilbert, Chairman and CEO of Rock Financial. "We will aggressively market the new
venture's residential mortgage products through several key channels to the hundreds of thousands
of consumers who already have strong financial relationships with Michigan National."
Through Rock Home Loans @ Michigan National, customers will have several different options to
obtain a fast and convenient mortgage approval:
-- Through all Michigan National Financial Centers
-- At the customer's home or place of business
-- By accessing the joint venture's call center through 1-800-CALL-MNB
-- Over the Internet
"We believe one of the strongest channels will be the Internet," Gilbert continued. "This alliance is
consistent with our goal to revolutionize residential mortgage lending by offering convenient new
ways to apply for loans, including our significant focus on offering mortgages through the Internet.
We firmly believe that a significant number of those customers will opt for the speed and
convenience of an Internet mortgage transaction using the joint venture's Web site, which will use
the technology of Rock's existing Web site."
Rock Home Loans @ Michigan National will be officially launched in April of 1999. The new
venture will be 70 percent owned by Rock and 30 percent owned by Michigan National. Most of
the Michigan National employees currently dedicated to residential mortgage sales and operations
will be offered positions with the joint venture, teaming up with a number of Rock employees who
are joining the new company.
Douglas Ebert, Chief Executive Officer of Michigan National, feels that the joint venture is great
news for anyone shopping for a mortgage.
"Michigan National is very excited to be partnering with one of Michigan's leading mortgage
lenders," Ebert said. "This joint venture will allow home buyers throughout the state to obtain
world-class service and state-of-the-art mortgage products at any conveniently located Michigan
National financial center, through our call center or online at the website."
Rock Home Loans @ Michigan National will feature the joint venture's complete line of first lien
residential mortgage products, including conventional, FHA, VA, and sub-prime loans, in addition
to several unique residential mortgage products offered only through Michigan National.
According to Ebert, this joint venture will reinforce Michigan National's commitment to providing
the best financial services to its customers.
"Because of this alliance, our customers will now receive more residential mortgage options, better
service, and faster responses to their residential mortgage applications," he said.
With 850 employees, Rock Financial is a mortgage bank that markets home loans through branch
locations, the Internet, and a state-of-the-art Web Center that incorporates Rock's national call
center. Visit Rock Financial's web site at www.RockLoans.com.
Michigan National, with assets of $10.7 billion, provides diversified financial services and offers
creative ideas and product options designed to help consumers and businesses meet their financial
goals. It is committed to being the bank of choice in its markets and provides the leading edge
products and services that customers expect from a member of a global financial network. Visit
Michigan National's web site at www.MichiganNational.com.
The commencement of joint venture operations remains subject to material closing terms,
conditions and government approvals.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain
statements contained in this press release, which are not historical fact, may be deemed to be
"forward-looking" statements under federal securities laws that involve risk and uncertainties.
There are many important factors that could cause Rock Financial Corporation's actual results to
differ materially from those indicated in the forward-looking statements. Such factors include, but
are not limited to: the overall growth of Internet service use by consumers; the willingness of
significant number of consumers to choose the Internet and alter their traditional mortgage
borrowing practices such as working with brokers or bankers; the joint venture's success in
generating sufficient user volume through advertising and marketing efforts; general economic
conditions, including interest rate risk, future residential real estate values, regulatory changes
(legislative or otherwise) affecting the real estate market and mortgage lending activities;
competition; demand for Rock Home Loans @ Michigan National services; availability of funding;
loan prepayment rates; delinquency and default rates, changes in factors influencing the loan
securitization market and other risks identified in Rock Financial Corporation's Securities and
Exchange Commission filings.
SOURCE Rock Financial Corporations
/NOTE TO EDITORS: Rock Financial Chairman Daniel Gilbert and Michigan
National CEO Douglas Ebert will answer media questions today via conference
call from 10 to 11:00 a.m. EST. To dial in, phone 877-233-7852 (toll free).
Once connected, enter participant code 376-353.
For more information on Rock Financial Corporation, dial 1-800-PRO-INFO
and enter the company ticker "RCCK"/
/CONTACT: Becky Celestini, Public Relations, 248-723-7715, or Shannon
Macko, Investor Relations, 248-723-7330, of Rock Financial; Robert Darmanin,
Public Relations, 248-473-3733, for Michigan National; or General Info, Tad
Gage, 312-640-6745, Analyst Contact, Tanya Hayward, 312-640-6732, or Media
Contact, Margie Baigh, 312-640-6690, of all of The Financial Relations Board/
/Web site: michigannational.com
/Web site: rockloans.com
(RCCK)
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