Reliant Financial Service Corp. (RFNS)

[EquityTrader]

Here comes the r/s and dilution.
Nice to see they reposted their false updates.
UPDATE AS OF 15 APRIL 2008



Even though Reliant expected substantial funds and financing is still near complete, the funds have yet to be posted to our account. We were advised on numerous occasions from the lender advancing funds that they would have posted by now. Though the funds have not posted, there has been no indication whatsoever that this transaction will not be partially completed or completed in its entirety, although, putting a definitive date is not possible. Though I am absolutely sure that the added wait is frustrating and seems ridiculous, without reasonable explanation, it appears to be consistent to procedure and processing when any commercial financing is at this final stage. We have been advised that the loan involves a complex structure; the constant market flux about the sub-prime mortgage market and possible recession concerns makes the closing much more difficult than anticipated. These unavoidable delays in getting everything precisely correct through the process, dictates the schedule, and the completion of the final steps of the process are dictated by the personnel working with us and their respective institutions.

My updates have been and will continue to be based on third party information provided and our own opinion. Reliant has over the last month continued to prepare for funding by testing its systems and preparing a suite of mortgage products for our brokers. The Canadian Market sub prime market continues to be soft and unpredictable as recently announced by Xceed Mortgage in this story located at: http://www.reuters.com/article/email/idCAN2741192120080327

Reliant will continue to seek to close this funding and will keep all shareholders updated.



UPDATE AS OF 24 March 2008


"Reliant has received a Capabilities Letter from their Lender with a funding date of NLT 15 April 2008. Due to confidentiality agreements Reliant can release no further information about this until funding is received." This communication is not to be shared with anyone outside of the shareholders of Reliant. This includes not to be posted or discussed on any website, emails, bulletin boards, interoffice mail, etc."


Reliant has relied upon the representation of a third party for this funding
commitment and there can no assurance that the loan will funded as indicated and may
change in the future.




UPDATE AS OF 4 March 2008

As per an agreement by Riveroaks and Reliant it has been agreed by both parties to remove all correspondence between the two companies from public display on the shareholders corner. Reliant appreciates the work being completed by Riveroaks and their dedication and commitment to completing the funding as per their commitment.





UPDATE AS OF 11 OCT 2007



As of writing, we continue to pursue our goal of establishing our business in the context of internal start up challenges and market volatility generally.

Notwithstanding the volatile domestic mortgage market environment, we now approach final stages of our 10M USD funding. We will push hard to keep it on track and have it close in the near future. The funds when available will be used to greatly broaden our capital base, collateralize future securitizations and thereby enable us to achieve profitability.

As part of this process Reliant management is at the same time canvassing EU investment and funding groups as potential buyers. This investment opportunity requires extensive regulatory approvals and the retention of special counsel.








Reliant will also as part of our re-structuring plan, avail ourselves of the regulatory latitude offered by Form 15 / Rule 12J4 filings under the Securities Act. These actions will enable us to proceed to raise further capital and an eventual new SB2 filing under the Act.



UPDATE AS OF 28 SEP 2007




In the next few months Reliant will continue to update our business plans and current events, which we will post on the \'Shareholders Corner\'.

Reliant Management and Shareholders could not have foreseen the events of the US Market sub-prime melt down affecting the Canadian Market in the way it did. Many Canadian \'experts\' pointed out in various news outlets that the Canadian Market would not be affected. In many ways this is true, but in one big way, it was wrong. The secondary (uninsured) mortgage asset backed capital market in Canada was decimated overnight after the US meltdown continued. Many Canadian's invested in this market and it effectively made the music stop on the Canadian market by virtue of nervous investors for this type of investment. Even in the UK it is now being felt by the same ripple effect.



WHAT ARE WE DOING?



Reliant has maintained the core engine to carry on the mortgage business in Canada after the sub-prime melt subsides and capital buyers are able to purchase mortgage backed assets at profitable levels again. Over the last few months we have continued intensive meetings and discussions that impact our future plans. Many adjustments have been taken and have to be undertaken to carry out our business plan. Below is a \'WE HAVE\' and \'WE NEED\' section that clearly shows what is needed.



WE HAVE



1. A fully operational web based mortgage brokerage underwriting system.

2. A mortgage warehouse credit line with a pool of mortgages.

3. A Mortgage Brokerage Network ready to sell our products.

4. Fully tested mortgage title insurance and escrow services with the largest Canadian Insurance and escrow company.

5. A Mortgage insurance facility for mortgage indemnity first loss policy from a UK based insurer rated A+ (Strong).

6. A conditional commitment from a Canadian Insurance Provider that includes a first loss policy for prime and Alt A products. This conditional commitment is subject to the Company obtaining new capital investment in Reliant Canada of not less than 5 million dollars.



WE NEED



Reliant management needs to accomplish these goals in order to become fully operational.

1. Capital Infusion of 5 to 10 Million dollars. (We could activate the Prime and Alt A products immediately with this)

2. A mortgage asset backed purchaser who will accept a first loss policy from a UK based insurer rated A+ (Strong). This must be at par or better to ensure profitability for the company.

Currently, Reliant has accepted the terms of one Capital Equity provider and is now moving forward to meet the due diligence and loan requirements of the Investor.

The Company's UK based insurer is actively seeking secondary mortgage backed asset purchasers for the Company utilizing its current consumer base.

Reliant Management is making the necessary changes to meet the new demands of the mortgage market and to achieve our plan. It is management's belief that these goals are obtainable and we ask for your support to move forward.

We will appreciate your comments.



\'QUOTE OF THE DAY\'



As quoted by a Canadian Mortgage Banker

The debacle that is the American sub prime mortgage market has proven once again that when the US sneezes, the rest of the world catches cold. This time it's a pretty big sneeze and several markets are out with pneumonia. You knew it had to come. Any banker with any sense knows you can't lend the way they did and not be bitten. What's different this time is how long they were able to hide their practices and prolong the ultimate agony. By selling their worst loans into securitizations they obfuscated the performance through massive amounts of leverage provided by European and Canadian banks and ABCP investors. The party kept going a lot longer than it ever should have if bankers were lending their own money. Greed supplanted good common sense to such an extent that 125% LTV's were the norm and everybody winked and looked away as Liar Loans became the prevalence. The wildfire's final spark was ARM's, which reset rates to completely unsupportable levels after initial teaser periods. Consumers struggling at the initial interest rates had no choice but to default on the reset dates. The worst is yet to come with resets on billions of dollars of American mortgages coming through the remainder of this year and next. European banks who lent money to hedge funds so they could buy mortgage backed securities based on these mortgages have been propped up by their respective governments with billions of dollars of aid. In Canada, our ABCP market is decimated because some issuers have exposure to these US sub prime mortgages and investors have no idea how much money they will lose. Investors are taking the attitude that what they don't know CAN hurt them and are only purchasing government backed bonds until they get some sense of exposure. We don't know how long the turmoil will last, but it will get better. Spreads will come back down and sanity will prevail and investors will again start buying good quality and well-underwritten Canadian mortgages and loans will again be saleable into the markets. It's merely a matter of time.

Forward-Looking Statement
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.