Walter Investment Management Corp. Completes Separation from Walter Industries
20 April 2009 - 9:30PM
PR Newswire (US)
Company Completes Merger of Former Walter Finance Business with
Hanover Capital Mortgage Holdings TAMPA, Fla., April 20
/PRNewswire-FirstCall/ -- Walter Investment Management Corp. (NYSE
Amex: WAC) announced the successful completion of the spin-off of
the former finance business of Walter Industries, Inc. and the
merger of that business with Hanover Capital Mortgage Holdings,
Inc. to form Walter Investment Management Corp. "We are excited
about these next steps for Walter Investment Management Corp. and
the opportunities available to us," said Chairman and CEO Mark J.
O'Brien. "We have a long track record of superior financial
performance through up-and-down credit cycles attributable to our
unique mortgage servicing approach. We have a strong, seasoned
management team in place and expect our $1.8 billion mortgage
portfolio to return a stream of steady dividends to our
shareholders for years to come." O'Brien stressed that, while many
lenders have struggled in the recent economic downturn, Walter
Investment has continued to generate strong, stable performance.
"Our mortgage portfolio is almost entirely fixed rate and was
originated with a consistent, disciplined underwriting approach,"
he said. "With our high-touch mortgage servicing platform, the
result is a 30-day delinquency rate that has remained well below
six percent." The Company has servicer ratings of "Average/Select
Servicer" from Standard and Poors and "RPS 3-" from Fitch. The
Company also expects to pursue opportunities to leverage its asset
management capabilities and unique servicing platform to expand its
revenue base beyond that provided from the existing portfolio. "Our
approach has a track record of producing prime results from
sub-prime assets and we believe there is a tremendous need for that
capability in today's environment," said O'Brien. In addition to
its asset management capabilities and mortgage servicing platform,
the Company offers full loan sale advisory and valuation services
for private companies and government agencies through Hanover
Trade. The Company also offers insurance services focused on
property casualty lines supporting the mortgage servicing business.
In conjunction with the separation and merger, Walter Investment
unveiled a new corporate identity and web site. The Company's
corporate identity pays tribute to Walter Mortgage Company's
founder Jim Walter, while the red-white-and-blue color scheme
communicates the sense of pride and trust employees, shareholders
and customers should feel with the new Company. The web site, which
can be found at http://www.walterinvestment.com/, has sections
about the Company's operations, as well as customer, investor
relations, employment and other information about the Company.
Customers of Walter Mortgage, Best Insurors or Hanover Trade
visiting their legacy web sites will be automatically re-directed
to the new site. About Walter Investment Management Corp. Walter
Investment Management Corp. is a mortgage servicer and portfolio
owner specializing in subprime, non-conforming and other
credit-challenged mortgage assets. Based in Tampa, Fla., the
Company currently has $1.8 billion of assets under management and
pro-forma annual revenues of approximately $200 million. The
Company is structured as a real estate investment trust ("REIT")
and employs approximately 225 people. Safe Harbor Statement Certain
statements in this release may constitute "forward-looking"
statements as defined in Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. Walter Investment Management Corp. is including this
cautionary statement to make applicable and take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Statements that are not historical fact are
forward-looking statements. The use of words such as "expect,"
"anticipate," "project," "estimate," "forecast," "objective,"
"plan," "goal" and similar expressions is intended to identify
forward looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors
that could cause the actual results, performance or achievements,
to differ materially from future results, performance or
achievements. The forward-looking statements are based on the
Company's current belief, intentions and expectations. These
statements are not guarantees or indicative of future performance.
The Company's future financial condition and results of operations,
as well as any forward-looking statements, are subject to change
and inherent risks and uncertainties. These risks and uncertainties
are contained in Walter Investment Management Corp.'s Registration
Statement on Form S-4 dated February 17, 2009, the Risk Factors
described in Walter Investment Management Corp's 2008 Annual Report
on Form 10-K, and Walter Investment Management Corp.'s other
filings with the Securities and Exchange Commission. Walter
Investment Management Corp. undertakes no obligation to update its
forward-looking statements as of any future date. In addition, the
following important factors and assumptions could affect the
Company's future results and could cause actual results to differ
materially from those expressed in the forward looking statements:
-- Integration of the former Hanover Capital Mortgage Holdings,
Inc. business into that of Walter Investment Management, LLC and
its affiliates (the "Merger"); -- The Company's continued
qualification as a REIT for Federal Income Tax Purposes; -- Local,
regional, national and global economic trends and developments in
general; and local, regional and national real estate and
residential mortgage market trends and developments in particular;
-- Financing sources and availability, and future interest expense;
-- Changes in federal, state and local policies, laws and
regulations affecting mortgage financing or servicing; --
Anticipated business development activities and future capital
expenditures; and -- Future performance generally. All forward
looking statements set forth herein are qualified by these
cautionary statements and are made only as of April 20, 2009. The
Company undertakes no obligation to update or revise the
information contained herein whether as a result of new
information, subsequent events or circumstances or otherwise,
unless otherwise required by law. DATASOURCE: Walter Investment
Management Corp. CONTACT: Investor and Media, Whitney Finch,
Director, Investor Relations of Walter Investment Management Corp.,
+1-813-871-4406, Web Site: http://www.walterinvestment.com/
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