Alliance Mortgage Company Awarded Sub-Servicing Contract for First Union Mortgage Loans

Business Wire, Nov 16, 2000

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Nov. 16, 2000

Alliance Mortgage Company announced today an agreement with First Union Mortgage Corporation (FUMC) in Charlotte, N.C., to sub-service approximately 70,000 mortgage loans, totaling over $9 billion. Under the agreement Alliance Mortgage Company will assume responsibility for payment processing, escrow disbursements, customer service and default management as part of the sub-serving function.

"We are very excited to be associated with First Union Mortgage Corporation and pleased that they have selected Alliance to sub-service their mortgage loans," said Rob Clements, President of Alliance Capital Partners, parent of Alliance Mortgage Company. "This agreement is a strong validation of Alliance's ability to provide a high level of quality service."

With this agreement, First Union has now provided sub-servicing for all of the asset loans that it owned at the time of its June 26 restructuring announcement. FUMC will continue originating new mortgage loans and will sell future production on a servicing-released basis, but will no longer service any new loans.

"First Union is delighted with the Alliance Mortgage Company agreement," said Debra Warren, president of FUMC. "Partnering with Alliance to sub-service our current asset loans will enable us to concentrate on the origination of new mortgage loans."

Under its current ownership, Alliance has grown to 225,000 mortgage loans totaling $13 billion, up from 58,000 loans and $3.5 billion in 1994. "The transfer will bring us to just under 300,000 mortgage loans and over $22 billion," said Michael Koster, Executive Vice President for Alliance Mortgage Company. "This puts Alliance in the top 25 mortgage loan servicing companies in the country."

As a result of the agreement, Alliance will add approximately 40 new employees in all areas of loan administration between now and January 31, the expected time of transfer.

Alliance Capital Partners is a privately held holding company headquartered in Jacksonville, Fla. In addition to Alliance Mortgage Company, its subsidiaries include First Alliance Bank and HomeAlliance Mortgage Company. It also operates pricelinemortgage through a joint venture with priceline.com, as well as BNY Mortgage Company, a joint venture with the Bank of New York. Alliance Capital Partners is not affiliated in any way with Alliance Capital Management, LP.

First Union Mortgage Corporation is a national mortgage lender with retail, wholesale and consumer direct production channels.

First Union (NYSE:FTU), with $247 billion in assets and stockholders' equity of $15 billion at September 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and full-service brokerage offices in 46 states and international offices worldwide. Online banking products and services can be accessed through www.firstunion.com.