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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
More Quotes and News:
Rock Financial Corp (Nasdaq:RCCK - news)
Related News Categories: banking, computers, internet, real estate
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