SOURCE: Shearson Home Loans

April 27, 2007 13:44 ET

Shearson Financial Network, Inc. Signs JV With United Equity Partners for Direct Marketing of Loans

LAS VEGAS, NV -- (MARKET WIRE) -- April 27, 2007 -- Shearson Financial Network, Inc. (OTCBB: SFNN) (www.sfnncorp.com) announced today that it has deployed its direct response marketing for solicitation of mortgage loans with United Equity Partners via Shearson's facility in Irvine, California. The companies entered into a joint venture to capture the increasing number of mortgage borrowers abandoned by the collapse of lenders serving the sub-prime market. Hardest hit was the Southern California market which has let go thousands of loan officers during the last several months. Shearson Home Loans (www.shearsonhomeloans.com) deployment of the direct marketing unit allows Shearson agents to call borrowers directly and solicit them for mortgage loans. The company has procured the names of over 20,000 borrowers who had applied for mortgages with now defunct lenders.

"We are taking advantage of the shift in borrower credit," stated Michael Barron, CEO and Chairman of Shearson Financial Network. "Many of the lenders who have shut their doors due to sub-prime loan problems also had a portfolio of borrowers who were not sub-prime borrowers. When the companies closed, they needed to find a lender to complete their loan. We want to be that company so we intend to contact them and offer to help them close." Mr. Barron was quick to add, "This does not mean we are going after sub-prime business -- we are not. We are only going after those who fit our credit profile of low risk loans."

Shearson Financial Network, Inc. reported net income of $2.8 million for the year ending December 31, 2006 and the company's operating unit, Shearson Home Loans, contributed $1.6 million to earnings. The value of Assets held by SFNN increased to $30.6 million for the year ended December 31, 2006 from $4.4 million in 2005, an increase of 590%. Net worth increased to $6.4 million from $(7.8) million during the same period, representing an increase of $14.2 million. Revenue from the originations of loans increased 25% or $1.7 million to $8.5 million. Earnings per share for the year ended December 31, 2006 was $0.02 as compared to a loss per share of $0.50 from the year ended December 31, 2005.

About Shearson Financial Network, Inc.

The company is a consolidator of independent mortgage brokerages. Shearson operates 17,538 sq. ft. of branch office space licensed in 33 states. The company currently is seeking new branches for its growing network. For more information, please visit the company's website at www.shearsonfinancialnetwork.com, www.sfnncorp.com or www.shearsonhomeloans.com.

Statements in this press release other than statements of historical fact, including statements regarding the company's plans, beliefs, and estimates as to projected results and market size are "forward-looking statements." Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent of obligation to update these forward-looking statements.

Contact Information

  • CONTACT:
    Shearson Financial Network, Las Vegas, Nevada.
    Michael Barron
    702-868-7922