CFI Mortgage, Inc., Signs Letter of Intent to Expand Mortgage Capabilities With Joint Venture Partner
CLEARWATER, Fla. (April 17, 2001)--CFI Mortgage, Inc. (OTCBB:CFIM) announced today that it has signed a letter of intent with Tidalwave Holding, Inc., (``Tidalwave'') a Florida corporation, to form a joint venture for the purpose of originating, buying and funding collateral mortgages primarily in the sub-prime mortgage market.
Under the terms of the proposed agreement, a new corporation will be formed. Tidalwave will provide the new corporation with access to its mortgage warehouse lines and secondary marketing and will receive a fee of one percent of each loan funded under the joint venture. CFI, through its wholly owned subsidiary First United MortgageBanc, Inc., (FUMB), will be responsible for all costs associated with the loan originations and will receive all income, less the one percent.
Stephen E. Williams, Chairman, President and CEO of CFI said, "We are excited about the possibility of a joint venture with Tidalwave Holdings, as it will allow us to expand our operations with additional mortgage warehouse lines and move us closer to becoming a full service mortgage company, which will include, among other things, the creation of a mortgage servicing department and a Government Lending Department. As we continue to grow internally, future acquisitions and joint ventures with established organizations, such as this one with Tidalwave, are an important part of our growth process.''
Source: CFI Mortgage, Inc.