Credit Depot Corporation announces increased mortgage sale commitment, lending facility, and advance rate

Business Wire,  Dec 5, 1995  

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GAINESVILLE, Ga.--(BUSINESS WIRE)--Dec. 05, 1995--Credit Depot Corporation (NASDAQ:LEND) announced today that it had secured a commitment subject to documentation to expand its relationship with its major investment banking institution. The agreement now calls for Credit Depot to sell the greater of all of its first mortgage, residential loan production through December 31, 1999 or $500,000,000 (previous levels were $300 million through December 31, 1997). It also provides for an expanded lending facility beyond the present $10,000,000 "repo line" provided by the institution and increases the advance rate from 90% of the face amount of the loans to 95%, with a reduction in the interest rate charged by the institution.

Credit Depot's management stated, "These modifications are significant to Credit Depot in that they provide additional available capital with which to originate and hold loans for its pending securitization program and it further demonstrates the commitment and relationship between Credit Depot and this investment banking institution."

Credit Depot is a multi-state financial services company that provides residential, real estate financing to individuals unable to secure loans through conventional sources. The Company currently originates loans through its offices in Florida, Georgia, Indiana, Ohio, South Carolina, Missouri, and Tennessee. These loans are collateralized by first mortgages, primarily on owner-occupied residential properties.

CONTACT: Credit Depot Corporation, Gainesville

Gerald F. Sullivan, 770/531-9927

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