CFI Mortgage Acquires PMC Mortgage,Direct Originator of Subprime Loans
Indiana-Based Company Says It Expects Loan Originations
To Approximate $175 Million in 1999
NORTH PALM BEACH, Fla., Dec. 15 /PRNewswire/ -- CFI Mortgage, Inc. (OTC-Bulletin Board: CFIM), a diversified consumer finance company, today announced the acquisition of PMC Mortgage Co. of Evansville, Indiana, a privately-held, nationwide, direct retail operation that specializes in the origination of sub-prime mortgage loans. Terms of the all-stock transaction were not disclosed.
PMC focuses on niche marketing opportunities through the use of targeted direct mail, and outbound telemarketing strategies. The Company originated in excess of $175 million in 1998 and expects approximately $175 million in originations for 1999. The Company maintains three primary call centers in Evansville, Indiana; Grand Rapids, Michigan; and Asheville, North Carolina, in addition to eight satellite origination offices.
Additionally, PMC is licensed to do business in 42 states, retains a network of approximately 225 loan originators and has warehouse facilities available for loan fundings of $115 million. PMC chief executive Gary Fioretti founded the company in 1993 and has experienced in excess of 100% increase in annual originations and revenues since inception through 1998.
Fioretti will continue as President and CEO with a management team and staff from both PMC Mortgage Co, and CFI as part of the new mortgage subsidiary. The mortgage business will be headquartered in a newly constructed state-of-the-art -- 20,000 square foot call/web center in Indiana that accommodates more than 150 mortgage specialists.
"Consumers will benefit," Fioretti said, "from our years of mortgage experience, our total commitment to customers and our innovative range of features, which will include real-time credit checks, instant pre-approvals, around-the-clock loan status updates and, in the near future, the ability to review and print out loan documents directly from the web."
The acquisition of PMC, "represents a significant milestone in the Company's history," said Steve Williams, CFI president & chief executive officer. "PMC provides an important retail infrastructure to support CFI's wholesale sub-prime lending operation. The combined entity will immediately benefit from diversified origination channels, expanded geographic territories, increased management depth and a stronger balance sheet. This transaction is an important step in fulfilling CFI's goal of becoming a diversified eCommerce financial services company with 50 state lending capabilities."
CFI previously announced its pending acquisition of Surfside Software Systems (R), a Clearwater based software developer. Williams said, "The market is quickly realizing that the success of eBusiness depends on world class service being delivered to online customers at every stage, along with measurable ROI for the Company." He added that, "As a result of the synergies gained from the combination of these acquisitions, CFI will be able to develop an integrated software suite that manages all of the essential contact points with on-line customers, in both business-to-business, and business-to-consumer environments, and will set a new standard for eService."
He said, "Our goal is to introduce a solution into the financial services marketplace, offering it as the most efficient and flexible web-enabled mortgage solution that supports all borrowing channels, -- consumer direct, retail and wholesale."
Williams added that, "the acquisitions of PMC Mortgage Co., and Surfside Software Systems(R) underscores CFI's commitment to lead and define eFinance. With the combination of CFI, PMC Mortgage Co., and Surfside Software Systems (R), we will be able to manage and innovate across the entire mortgage process -- from evaluation and application through approval and closing -- resulting in our ability to offer consumers the best and most seamless experience. At the same time, the end-to-end service model will enable us to increase our revenue per loan."
This press release includes "forward-looking" statements about CFI's acquisition of PMC and planned acquisition of Surfside Software Systems (R) and the prospects for PMC's online mortgage business. For example, statements in the future tense, and statements such as we "expect", we "anticipate", or we "believe" are forward looking statements. Investors should be aware that actual results might differ materially from our expressed expectations because of risks and uncertainties about the future. CFI will not necessarily update the information in this press release if any forward looking statements later turn out to be inaccurate. Risks and uncertainties affecting the PMC acquisition and pending acquisition of Surfside Software Systems (R) include the following: The integration of acquired companies often poses ongoing operational challenges and risks. PMC's mortgage business is subject to interest rate fluctuations, and the impact of interest rates on CFI's operating results will become more significant as a result of the acquisition of PMC. Additional factors that could affect future operating results and events are included in CFI's fiscal 1998 Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
SOURCE CFI Mortgage, Inc.
CO: CFI Mortgage, Inc.; PMC Mortgage Co.
ST: Florida, Indiana
IN: FIN
SU: TNM
12/15/1999 08:29 EST prnewswire.com |
