CFI Mortgage, Inc., to Acquire One of Michigan's Largest Private Mortgage Banking Firm, as Well as an Information Technology Consulting Firm
Thursday September 20, 6:31 am Eastern Time Press Release
SOURCE: CFI Mortgage, Inc.
CLEARWATER, Fla.--(BUSINESS WIRE)--Sept. 20, 2001--CFI Mortgage, Inc.(OTCBB:CFIM - news) announced today that it has executed Letters of Intent to acquire Lender, Ltd., one of Michigan's largest private mortgage banking firms, as well as
Efficiency Experts, LLC, a Michigan-based technology consulting firm. The terms of the transactions, which are valued at $8 million, will be completed with creative wrap-a-round financing that calls for $6 million in cash and $2 million in Senior Debt Instruments. CFI is in the final stages of completing an underwriting agreement with investment bankers and
expects to close the acquisition in approximately 45 days.
Lender, Ltd. has 12 branch offices located throughout the Southeast Michigan area and adheres to a unique business model, which has been profitable in each of its 6 years of operations. Lender, Ltd. has closed over $561 million in mortgage loans in 2001 through August and anticipates total mortgage volume for 2001 to be in excess of $1 billion. The product mix of these retail loans consists of 85% Conventional/Conforming, 10% Government and 5% Sub Prime/Alt. A. Lender, Ltd.'s business model creates the flexibility to expand or constrict during any type of economic condition.
Jim Wickham, President of Lender, Ltd., said, ``Our primary thrust has consistently been the development of operational procedures that help support and promote our entrepreneurial-minded management team. Blending these concepts with the existing structure of CFI will allow us to grow nationally, through the replication of our proven concepts, while at the same time providing our employees with the ability to take ownership interest in a public company.''
Efficiency Experts, LLC is a Michigan-based technology consulting firm that provides IT support to small and mid-sized businesses that outsource their IT needs on a contractual basis. Efficiency Experts will compliment the software development abilities of Surfside Software and allow it to expand the IT support component full circle. Additionally, as
Lender, Ltd. expands nationally, certain key geographic locations will house both a Lender, Ltd. hub as well as an Efficiency
Experts' base of operations.
Steve Furniss, President of Surfside Software, Inc., a wholly owned subsidiary of CFI, said, ``One of the most demanding tasks of Surfside is to provide installation, training and implementation services to new and existing clients. With the addition of Efficiency Experts to the CFI organization, we will be able to provide the highest quality outside IT services in a cost-effective manner.''
Stephen E. Williams, Chairman, President and CEO of CFI said, ``The acquisition of Lender, Ltd. thrusts CFI into an
enviable position in the mortgage banking industry and will allow us to expand its proven business model nationwide. CFI will
now place a greater emphasis on the retail mortgage business, while continuing to grow its wholesale mortgage lending
operation. Richard Shaffner and Jim Wickham have built a very successful business in a remarkably short period of time, and as a public entity, we provide Lender, Ltd., with the ability to expand its concepts nationally in a much shorter period of time. The expansion of both entities will be cost effective as they will share certain cross marketing advantages.''
Mr. Williams continued, "I wish to add that with the current state of our nation, our comprehension of the tragedy we have been forced to endure as Americans is indescribable in words. Our heartfelt sympathies go to all of those directly and indirectly affected by this tragic event. Fortunately, we have families to spend time with, careers to grow and develop and friendships to enjoy. This event will forever change the way we view life in this country. Let's focus our energies on the positives of life in this great country, the greatest place on Earth.``
CFI provides mortgage services through a large network of mortgage brokers and financial professionals. CFI's goal, through
acquisition and internal growth, is to be a diversified leader creating custom software that provides technology-based business solutions for the national and international marketplace, as well as a leader in the mortgage industry. For more information on CFI please visit the Company web site at www.cfiinc.com or that of Responsive Research at www.responsiveresearch.com where you can subscribe, free of charge, to its mailing list for press releases, investor updates and market letters, which will keep you apprised of all late breaking CFI news.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ
materially from actual future events or results. Forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking
statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.
Contact:
Responsive Research, Inc., Coconut Creek, Fla.
Investor Relations, Richard C. Winkel, 954/977-8699
info@responsiveresearch.com
or
CFI Mortgage, Inc., Clearwater
Investor Relations, Marlene Noren, 727/674-1010
mnoren@cfiinc.com
