ContiFinancial Terminates Plans to Acquire Majority Control of First Security

Business Wire, Dec 7, 1998

NEW YORK--(BUSINESS WIRE)--Dec. 7, 1998--ContiFinancial Corporation (NYSE:CFN) today announced that it has terminated its plans to acquire First Security Commercial Mortgage L.P. and First Security Commercial Mortgage Servicing L.L.C. (together, "First Security"). Earlier this year ContiFinancial signed a non-binding letter of intent, under which it would have acquired a 92% interest in a new company, which would have combined the management and resources of the acquired companies. The transaction would have increased ContiFinancial's existing ownership of 33% of First Security Commercial Mortgage and 49% of First Security Commercial Mortgage Servicing. The decision to terminate the acquisition of a majority interest in First Security was made based upon the current unsettled conditions in the commercial real estate market.

ContiFinancial Corporation is a diversified financial services company, with headquarters in New York City and over 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer and servicer of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through Keystone Mortgage Partners LLC, the Company arranges financing for a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans including home equity loans; home improvement loans; prime, non-prime and sub-prime auto loans; equipment leases; charged-off consumer debt and franchisee loans.