SOURCE: Delta Financial Corp.

December 07, 2006 08:30 ET

Delta Financial Announces Securitization Backed by $625 Million in Mortgage Loans

WOODBURY, NY -- (MARKET WIRE) -- December 7, 2006 -- Delta Financial Corporation (AMEX: DFC) today announced it has priced a securitization backed by $625 million of mortgage loans through its subsidiary Renaissance Mortgage Acceptance Corp. The Renaissance Home Equity Loan Trust 2006-4 is a senior subordinate structure.

Commenting on the securitization transaction, Hugh Miller, president and chief executive officer, said, "As previously stated during our third quarter 2006 conference call, we securitized a smaller amount of mortgage loans this quarter as historically we have received more advantageous securitization pricing in the first quarter than in the fourth quarter of the year. As a result, we will retain a larger amount of pre-securitized loans on our balance sheet at December 31, 2006 as compared to September 30, 2006, which will be financed short-term through our warehouse lines of credit until we securitize them, which is expected to occur during the first quarter of 2007." Mr. Miller continued, "Since we finance the majority of the loans we originate rather than sell them on a whole-loan gain-on-sale basis, we have the flexibility to determine the size of our securitizations based on supply and demand dynamics in the securitization market without adversely affecting our earnings for the period."

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, JPMorgan and Banc of America Securities LLC.

About the Company

Founded in 1982, Delta Financial Corporation is a Woodbury, New York-based specialty consumer finance company that originates, securitizes and sells predominantly fixed-rate non-conforming mortgage loans. The Company's loans are primarily secured by first mortgages on one- to four-family residential properties. The Company originates non-conforming loans through a network of approximately 3,000 independent brokers and the Company's retail offices. Since 1991, the Company has completed 49 asset-backed securitizations, collateralized by approximately $17.3 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, our ability to consummate this quarter's securitization and future securitizations, the structure and ratings for the securitization, the benefits of portfolio accounting, expectations as to market phenomena, and the impact that any strategies may have including with respect to potential volatility in earnings. 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, our ability to continue to originate mortgage loans; our ability or inability to continue to access the securitization and whole-loan markets at favorable terms and conditions; competition; loan losses, loan prepayment rates, delinquency and default rates; 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, demand for our products and services; 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 hereby 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.

Contact Information

  • For More Information Contact:

    Jayne L. Cavuoto-Krafchik
    Director of Investor Relations
    (516) 812-8217
    Email Contact

    Drew Biondo
    Director of Corporate Communications
    (516) 812-8208
    Email Contact