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To: Sir Auric Goldfinger who wrote (8255)	6/12/2000 6:12:00 PM
From: StockDung	Respond to of 10354

"The (lender?s) creditor is going to get ahold of those assets and determine who to sell them to, but the terms of those contracts . . . are not going to change," says Mark Hikel, former president of a subsidiary of Southern Pacific Funding Corp., a high-LTV firm which recently filed for bankruptcy. "The borrower?s ability or responsibility to pay back the loan is not affected by the (company's) bankruptcy." moneyinsider.msn.com ---------------------------------------------------------------------------------------- Loraca Names Mark Hikel Executive VP Production for Calumet Securities SEATTLE/SCHERERVILLE, Ind.--(BUSINESS WIRE)--June 8, 2000--Loraca International, Inc. (OTCBB:LCAI) an emerging mortgage banking aggregator and technology provider, today announces that Mark Hikel has been named Executive Vice President of Production for its subsidiary, Calumet Securities Corporation. With more than 14 years of management experience in retail, correspondent and broker mortgage originations, Mr. Hikel will be responsible for Calumet's business development in the Western United States. In 1997, Hikel founded HomeAmerica Financial Services, Inc., a mortgage origination company based on a technologically sophisticated, centralized wholesale production model. In its first full year of production, HomeAmerica originated $242 million in first and second sub-prime mortgages and achieved solid profitability. In 1998, HomeAmerica was purchased by DMR Financial, where Mr. Hikel continued to demonstrate strong leadership in the business. Among his many achievements was the implementation of the company's interactive Internet platform designed to compress costs and increase productivity across the entire company. Prior to founding HomeAmerica, Hikel held senior management positions with Bank One Financial Services (NYSE:ONE), CIT Group (NYSE:CIT) and Commercial CitiGroup. "Mark brings an uncommon blend of experience in emerging Internet business management combined with a strong background in mortgage banking. His outstanding sales management skills and entrepreneurial drive further demonstrate his qualifications for the demanding role he will be filling for us. We are very pleased to welcome him to our senior management team," stated Barney Guy, Loraca's President. Loraca International, Inc. is a rapidly evolving mortgage banking aggregator and technology provider, supplying web-enabling technology to firms involved in the mortgage lending, loan servicing and community banking industry. The company moved its headquarters to Seattle, Washington from Albuquerque, New Mexico in December. CONTACT: Loraca International, Inc. Bernard Guy, President, 206/332-0400 KEYWORD: WASHINGTON INDIANA BW1337 JUN 08,2000 14:48 PACIFIC 17:48 EASTERN

To: Sir Auric Goldfinger who wrote (8255)	6/12/2000 6:19:00 PM
From: StockDung	Respond to of 10354

"IMC Mortgage Co. Criimi Mae Inc. The list of casualties in the nontraditional lending industry is getting longer with each passing day." "The liquidity in the marketplace is not as great as it was five months ago," says Mark Hikel, the former president of Southern Pacific?s Indianapolis-based subsidiary that originated high-LTV loans." High-risk lenders battered by market turmoil By Michael D. Larson bankrate.com Southern Pacific Funding Corp. FirstPlus Financial Group Inc. IMC Mortgage Co. Criimi Mae Inc. The list of casualties in the nontraditional lending industry is getting longer with each passing day. Each of these companies dabbled in different areas. Southern Pacific and FirstPlus originated and sold high loan-to-value equity loans. IMC Mortgage Co. offered high-risk, subprime loans. Criimi Mae bought securities comprised of commercial, rather than residential, mortgages. All have been battered by ongoing market turmoil. In this story Loans as investments Tight cash Shortage coming? Goes around, comes around Now, the same industry that has been pushing high loan-to-value (LTV) home equity loans -- which some consumer advocates warn can lead people to bankruptcy -- is finding itself in the same boat as its customers. Southern Pacific filed for Chapter 11 protection a few weeks ago, as did Criimi Mae. FirstPlus said Oct. 15 that it was firing 3,000 employees (half its workforce) and leaving the high-LTV, wholesale home equity loan origination business. The next day, IMC Mortgage said it had secured temporary financing to keep it afloat while it looks for a buyer. "I?ve been in the business about 25 years, and I haven?t seen anything quite like it," says Jeffrey Zeltzer, executive director of the National Home Equity Mortgage Association. "You?re talking about a very, very fluid situation." Loans as investments The problem stems from trouble on Wall Street. Typically, home equity loan companies treat their product the same way traditional lenders do. They package groups of loans to form securities, which are sold through investment bankers to mutual fund companies and others. While securities backed by traditional mortgages are called "mortgage-backed securities," securities backed by home equity loans are referred to as "asset-backed securities." Ever since Russia defaulted on its debt this summer, investors have become increasingly risk-averse and have drifted away from asset-backed securities and toward more conservative securities, including short-term Treasury bills and notes. That has made enough of a difference in the market that hedge funds have taken it on the chin. The funds are operated by investment companies that cater to the rich and use their money to place bets on the direction of markets. They are heavy buyers of asset-backed and other non-Treasury securities. "Even though there's going to be a strong demand for the product from the consumer, I think the sources of funding are going to slow down." Tight cash In the end, that means home equity and subprime companies can?t raise enough money for loans because fewer hedge fund buyers and others are stepping in to grab their bundled mortgages. "The liquidity in the marketplace is not as great as it was five months ago," says Mark Hikel, the former president of Southern Pacific?s Indianapolis-based subsidiary that originated high-LTV loans. Shortage coming? What does this foretell for people who might want 125 percent home equity loans in the future? "(The) 125 is a product that is going to slow down," Zeltzer says. "Even though there?s going to be a strong demand for the product from the consumer, I think the sources of funding are going to slow down. That product that is in place is going to become more expensive to the consumer." Hikel says the industry itself is to blame. "The problem with the product since its inception is that it?s gotten too aggressive ... Loan amounts probably went too high, debt ratios went too high." The loans "are going to be reengineered, reinvented."

To: Sir Auric Goldfinger who wrote (8255)	6/12/2000 6:37:00 PM
From: StockDung	Respond to of 10354

Lender troubles That extra risk has caused investors to shy away from putting their money in securities backed by these loans in the past couple of months. As a result, several lenders who specialize in high-LTV loans have scaled back their operations or filed for bankruptcy protection. Such moves, however, should not affect the terms of a borrower's loan. Typically, groups of loans held by defunct companies are sold to others in the industry and borrowers would experience nothing more than a change in where their payments go -- much like the standard "servicing transfers" done with traditional first mortgages. "The (lender?s) creditor is going to get ahold of those assets and determine who to sell them to, but the terms of those contracts ? are not going to change," says Mark Hikel, former president of a subsidiary of Southern Pacific Funding Corp sp-funding.com ., a high-LTV firm which recently filed for bankruptcy. "The borrower?s ability or responsibility to pay back the loan is not affected by the (company's) bankruptcy." ==================================================== Loraca Names Mark Hikel Executive VP Production for Calumet Securities SEATTLE/SCHERERVILLE, Ind.--(BUSINESS WIRE)--June 8, 2000--Loraca International, Inc. (OTCBB:LCAI) an emerging mortgage banking aggregator and technology provider, today announces that Mark Hikel has been named Executive Vice President of Production for its subsidiary, Calumet Securities Corporation. With more than 14 years of management experience in retail, correspondent and broker mortgage originations, Mr. Hikel will be responsible for Calumet's business development in the Western United States. In 1997, Hikel founded HomeAmerica Financial Services, Inc., a mortgage origination company based on a technologically sophisticated, centralized wholesale production model. In its first full year of production, HomeAmerica originated $242 million in first and second sub-prime mortgages and achieved solid profitability. In 1998, HomeAmerica was purchased by DMR Financial, where Mr. Hikel continued to demonstrate strong leadership in the business. Among his many achievements was the implementation of the company's interactive Internet platform designed to compress costs and increase productivity across the entire company. Prior to founding HomeAmerica, Hikel held senior management positions with Bank One Financial Services (NYSE:ONE), CIT Group (NYSE:CIT) and Commercial CitiGroup. "Mark brings an uncommon blend of experience in emerging Internet business management combined with a strong background in mortgage banking. His outstanding sales management skills and entrepreneurial drive further demonstrate his qualifications for the demanding role he will be filling for us. We are very pleased to welcome him to our senior management team," stated Barney Guy, Loraca's President. Loraca International, Inc. is a rapidly evolving mortgage banking aggregator and technology provider, supplying web-enabling technology to firms involved in the mortgage lending, loan servicing and community banking industry. The company moved its headquarters to Seattle, Washington from Albuquerque, New Mexico in December. CONTACT: Loraca International, Inc. Bernard Guy, President, 206/332-0400 KEYWORD: WASHINGTON INDIANA BW1337 JUN 08,2000 14:48 PACIFIC 17:48 EASTERN

To: Sir Auric Goldfinger who wrote (8255)	6/12/2000 9:32:00 PM
From: StockDung	Read Replies (1) \| Respond to of 10354

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