Press Release 4-8-99! RCCK generates 22 million in March Closings!
(This company is amazing and nobody knows about them yet!)
Thursday April 8, 1:14 pm Eastern Time
Company Press Release
SOURCE: Rock Financial Corporation
RockLoans.com Reports Internet Mortgage
Closings of $22 Million in March
Website Also Announces Marketing Launch in California
BINGHAM FARMS, Mich., April 8 /PRNewswire/ -- Rock Financial Corporation (Nasdaq: RCCK - news), owner
and operator of RockLoans.com, announced first quarter Internet closed loan production of $29 million, including $22
million closed in the month of March. The production included conventional, jumbo, sub-prime and FHA insured
residential mortgages. The closed loan volume was produced from a limited number of test markets that were
launched in mid January.
''We are pleased with the initial results of our formal launch of RockLoans.com,'' said Daniel Gilbert, CEO of Rock
Financial. ''As a direct originator offering a full range of loan programs we were able to maintain our high standards of
customer service which is imperative for our business. It is our belief that building a loan processing and closing
infrastructure capable of closing loans across the country will be an important competitive advantage in the on-line
mortgage business. Our 130-person Web sales and processing center is already closing a significant number of loans.''
Rock Financial expects to realize approximately $675,000 of revenue on the first quarter Internet closed production.
(This revenue is booked at the time the loans are sold in the secondary market.) With an average loan balance of
$110,000, this translates to approximately $2,600 dollars of revenue per loan or 235 basis points per unit closed.
''Our business model is different from the majority of on-line mortgage companies that sell leads and broker loan
applications for a significantly smaller per unit fee,'' continued Gilbert. ''Our mission is to provide customers a wide
product offering on a direct basis and smoothly and efficiently to close loans wherever they reside in the United States.
This enables us to price competitively and generate a significantly higher revenue stream per closed loan, although we
provide additional services and accordingly have the added expenses of being a direct lender.''
RockLoans.com also announced it will start marketing in the populous California marketplace. ''We are looking
forward to introducing our brand and mortgage programs to Internet savvy Californians,'' said Sonny Spearman, Vice
President of Internet Marketing for RockLoans.com. ''Media testing will begin in key California markets in the next
couple of weeks and a full roll out is scheduled for summer.''
Rock Financial, owner and operator of RockLoans.com, earned nearly $19 million (pre-tax) on revenue of almost
$90 million in 1998. The company closed over $2.3 billion in residential loans last year.
''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
included, but are not limited to, 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 Financial Corporation 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 Corporation |
