Delta Financial Corporation (NASDAQ:DFC) today announced it has securitized $850 million of mortgage loans through its subsidiary, Renaissance Mortgage Acceptance Corp. -- the Renaissance Home Equity Loan Trust 2007-2.
“While we are still cautious about the securitization market on a go forward basis,” stated Hugh Miller, president and chief executive officer, “we saw a marked improvement in both pricing and investor demand for this transaction, compared to the securitization we completed in the first quarter of this year. Additionally, while we have typically issued securitizations every three months, we decided to issue this transaction only two months after our first quarter deal and may, depending on market conditions, continue to issue securitizations more frequently in the future.”
Standard & Poor’s Ratings Services and Moody’s Investors Services, Inc. rated the securities. The securitization was co-lead managed by RBS Greenwich Capital and Deutsche Bank Securities, and co-managed by Citigroup, Banc of America Securities LLC and JPMorgan.
About the Company
Founded in 1982, Delta Financial Corporation is a Woodbury, New York-based specialty consumer finance company that originates, securitizes and sells non-conforming mortgage loans. The Company’s loans are primarily fixed rate and secured by first mortgages on one- to four-family residential properties. The Company originates non-conforming loans through a network of approximately 3,200 independent brokers and the Company’s retail offices. Since 1991, Delta has completed 51 asset-backed securitizations, collateralized by approximately $19.0 billion in mortgage loans.
Important Information Regarding Forward-Looking Statements. Certain statements contained in this press release, which are not historical fact, may be deemed to be "forward-looking" statements under the federal securities laws, and involve risk and uncertainties. Forward-looking statements relate to, among other things, the timing of our future securitization transactions, our ability to consummate the securitization, and the structure and ratings for the securitization. There are many important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, the availability of funding at favorable terms and conditions, including without limitation, the availability of warehouse, residual and other credit facilities; our ability or inability to continue to access the securitization and whole-loan markets at favorable terms and conditions; our ability to continue to originate mortgage loans; competition; loan losses, loan prepayment rates, delinquency and default rates; repurchase obligations, early payment default, costs and potential liabilities associated with litigation, our regulatory settlements with state and federal agencies and other regulatory compliance matters and changes (legislative or otherwise) affecting mortgage lending activities and the real estate market; general economic conditions, including interest rate risk, future residential real estate values, and demand for our products and services; the state of the housing market; and other risks identified in our filings with the Securities and Exchange Commission, including those discussed in our Form 10-K under the captions “Business–Forward Looking Statements” and “Risk Factors” and our Form 10-Q under the caption “Risk Factors.” We disclaim any obligation to update or revise any of the forward-looking information contained in this press release at any future date, except as required under applicable securities laws.