PLEASANTON, Calif./EWORLDWIRE/March 10, 2006 --- Silverado Financial Inc. (OTCBB: SLVO) today announced that it has agreed to sign a Joint Venture agreement with Bankers Alliance to launch an innovative new approach to mortgage fulfillment and loan quality control. Under the terms of an exclusive agreement, Silverado will operate the mortgage transaction fulfillment center and quality control services for Bankers Alliance’s wholesale conduit business.The joint venture signifies Silverado’s adaptability to a changing environment and positions Silverado within a less interest rate sensitive mortgage business. The joint venture also enables Silverado to profit from the emerging growth business of origination conduits through channel partnering and mortgage loan quality control.
The loan origination conduit and quality control businesses are high growth areas within the mortgage industry. Given the nationwide declines in mortgage originations, lenders/investors are seeking to increase profit margins on declining revenue and decrease the occurrence and exposure to fraudulent and/or erroneous loans. Silverado has long recognized why the mortgage industry needs a nationwide clearinghouse that performs fulfillment and quality control.
This joint venture positions Silverado well for the changing environment by providing small and medium sized mortgage operations with access to high-volume lenders/investors and discount products it could not otherwise directly conduct business. The arrangement provides lenders/investors with a higher level of comfort with the quality of the mortgage loans they are receiving because the quality control process is administered before they receive the loans.
"With about 75% of all mortgage origination coming from small to medium independent mortgage lenders, Silverado is positioned to profit from this joint venture and the highly fragmented originator market through its provision of utilities and services to this under-serviced aspect of the mortgage industry," stated Sean Radetich, COO of Silverado.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "plan," "expect," or similar expressions, and are subject to numerous known and unknown risks and uncertainties. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this Release, including the above matters and in the company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
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