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Non-Tech : Signature Group Holdings -- Ignore unavailable to you. Want to Upgrade?

To: SI Bob who wrote (4)	3/21/2007 9:39:45 AM
From: Carey Thompson	Read Replies (3) \| Respond to of 78

This news provides evidence FMT is exiting the residential real estate market, with its sub prime problems. We need to find out if the sale was "non recourse", or a sale that cannot be put back to FMT later. Its important to note the buyer bought the whole loans at a discount. Another important note is FMT sold without a securitization, where FMT retains part interest of all securizations (see Business notes in Annl Rpts from 2000 - 2005). This a clean sweep of the residential real estate loans off the asset (?) side of the balance sheet. SANTA MONICA, Calif., March 21 /PRNewswire-FirstCall/ -- Fremont General Corporation (the "Company") (NYSE: FMT), a nationwide real estate lender doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan ("FIL"), today announced that FIL has entered into whole loan sale agreements to sell approximately $4 billion of its sub-prime residential real estate loans. The Company has received approximately $950 million in cash from the first sale installment under the agreements with the remaining sales under the agreements expected to be completed over the next several weeks. The Company will sell the loans at a discount, reflecting current conditions in the sub-prime mortgage market. The Company estimates that the sale of the approximately $4 billion of its sub-prime residential loans will result in a pre-tax loss of approximately $140 million. fremontgeneral.com The Company continues to operate its profitable commercial real estate lending and residential loan servicing operations, as well as its retail banking division. The Company's retail banking operation continues with its 70-year history of offering highly competitive rates for Certificates of Deposit and Savings Accounts across its network of California branch offices. Customer deposits remain fully insured by the FDIC up to at least $100,000, and retirement accounts remain insured separately up to an additional $250,000.