GMFSis operating at full capacity and loan locks have returned to pre-flood levels. On a quarter to date basis, through August 31, production was at $420 million, with August production running approximately 5% above July production.
- Balance Sheet Exposure:
GMFScurrently has 15 loans with a total Unpaid Principal Balance ("UPB") of approximately $3.0 millionthat are anticipated to have some level of flood damage. GMFSis in the process of assessing the level of damage for those impacted customers and is confirming whether or not those customers are covered by flood insurance. These loans represent approximately 5.4% of the $56 millionin UPB of mortgage loans held for sale that were in the flood areas at the time of the storm.
- Mortgage Servicing Rights (MSR) Exposure: Approximately 6.4% of customers whose loans are currently serviced by
GMFS, have now accepted a 90-day forbearance period. During the 90 days, GMFSwill advance taxes and insurance payments, as well as principal and interest, depending on the investor which now owns the mortgage. GMFScurrently anticipates that these monthly servicing advances will total approximately $1.75 millionper month, beginning in the fourth quarter of 2016. While customers continue to sign up for forbearance, the request rate has slowed, and the Company currently anticipates that it will have sufficient liquidity to cover these advances. GMFSwill continue to retain MSRs on new production in the coming months but estimates that loan servicing fee income will be reduced during the forbearance period.
The Company continues to monitor the situation but, except as required by law, does not intend to provide any further updates or make any further comments.
ADDITIONAL INFORMATION ABOUT THE MERGER
In connection with the Mergers, the Company filed a registration statement on Form S-4 with the
Investors and stockholders of the Company and Sutherland may obtain free copies of the registration statement, the joint proxy statement/prospectus and other relevant documents filed by the Company with the
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the
PARTICIPANTS IN SOLICITATION RELATING TO THE MERGER
The Company, Sutherland and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's and Sutherland's stockholders in respect of the proposed Mergers. Information regarding the Company's directors and executive officers can be found in the Company's Annual Report on Form 10-K filed with the
This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, the risk that the Mergers will not be consummated within the expected time period or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the inability to obtain stockholder approvals relating to the Mergers or the failure to satisfy the other conditions to completion of the Mergers; fluctuations in the adjusted book value per share of the shares of both the Company and Sutherland; risks related to disruption of management's attention from the ongoing business operations due to the proposed Mergers; the effect of the announcement of the proposed Mergers on the Company's operating results and businesses generally; the outcome of any legal proceedings relating to the Mergers; changes in future loan production; the Company's ability to retain key managers of
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