WMC Mortgage introduces new 100 percent fixed-rate financing program with no down payment or MI required; company renamed as its sale approaches April 30 closing date

Business Wire, April 11, 1997

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--April 11, 1997--WMC Mortgage Friday announced the introduction of a new 100 percent fixed-rate financing program with no down payment or mortgage insurance required on conforming and jumbo loans of up to $333,000.

Only previous homeowners having a 12-month mortgage-payment history and an excellent credit rating are eligible to participate in the 100 percent financing program, which combines a 70 percent first mortgage with a 30 percent second mortgage.

The first mortgage is fixed for 30 years; the second mortgage may be fixed for either 10 or 15 years, or amortized over 30 years/ payable in 15 years.

Borrowers can qualify with a debt ratio of up to 45 percent, and there is no housing expense ratio. However, borrowers must have 5 percent of the sales price or appraised value, whichever is lesser, in cash reserves prior to closing. This reserve can be used to pay closing costs, and up to 6 percent seller contributions are allowed for nonrecurring closing costs.

This new 100 percent financing program is an enhancement of the company's popular first- and second-mortgage piggyback loan offer, which was introduced last year.

WMC Mortgage will be the new name for Weyerhaeuser Mortgage Co., which is in the final stage of being sold to WMC Acquisition Co., a joint venture of Apollo Advisors L.P. and Spring Mountain Escrow Inc., California's largest independent escrow company.

Apollo Advisors comprises investment partners who control a portfolio of more than $5 billion and own such companies as Ralphs and Dominick's supermarkets, Samsonite Corp., Culligan Water Technologies and Converse and Florsheim shoes. The sale is expected to close on April 30.

WMC's loan originations in 1996 exceeded $3 billion, making it one of the nation's 50 largest single-family-home loan lenders. The company has served the needs of builders, borrowers, Realtors and mortgage brokers for 44 years, and it has 1,500 employees in more than 60 branch offices nationwide.

CONTACT: The Landon Group, Thousand Oaks, Calif.

Barry Landon, 805/492-2820