Athas Capital Group, Inc., a National Direct Nonprime Lender, Experiences Tremendous Growth in 2010 and is Poised for Even Further Growth in 2011

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Athas Capital Group, Inc., (“ACG”) is a direct mortgage lender specializing in nonprime solutions for commercial nonprime lending Nationwide (except MI or VT) and California residential lending. ACG realizes remarkable production growth through 2010 and will be expanding its residential lending footprint throughout 2011, beginning with Arizona in the first quarter of 2011.

“We are very excited about the future...We have never originated a mortgage loan that resulted in a realized loss and as our firm has expanded we have enjoyed progressive revenue growth.

The co-founders of Athas Capital Group have extensive institutional lending and credit analysis backgrounds, and leverage their expertise by bringing high level institutional structure and knowledge to a lending market that has historically been very fragmented. Since the near collapse of the capital markets, the void created by the lack of an active secondary market for mortgage loans has left little alternative for prime borrowers beyond traditional Government Sponsored Entities (“GSE”) and bank models. Furthermore, GSE and traditional bank lenders remain constricted and in many cases are unwilling to deploy their capital. This has made it increasingly difficult for individuals to obtain prime mortgage loans, even though just a few years ago these borrowers were courted by a full spectrum of lending products that were effortlessly obtainable.

In today’s fractured climate, borrowers and mortgage brokers have but two options. The first and obvious choice is the yet constrained prime market, with the only alternative being private money mortgage loans. With this huge divide have come many new entrants to the private lending industry, but the vast majority are very small companies who are regionally focused and lack an institutional lending structure. According to Kevin O’Shaughnessy, co-founder and COO of ACG, “Athas’ primary advantage in the non-prime market is having a platform that provides our client base with an institutional and a ‘real’ company feel. Our borrower’s and brokers interact with true industry veterans that have endured several economic cycles. We are well capitalized and our suite of loan products is structured which allows our clients to feel comfortable in knowing they will be handled with professionalism.”

ACG has created product matrices that provide clear and unambiguous models for both commercial and residential lending. In an environment where there are very few direct lenders, this structure and funding capability has helped to distinguish ACG from its peers as it endeavors to institutionalize a “mom and pop” industry. O’Shaughnessy continues, “We are very excited about the future. We are growing our sales force and are actively hiring experienced wholesale reps to capture more market share nationwide. We have never originated a mortgage loan that resulted in a realized loss and as our firm has expanded we have enjoyed progressive revenue growth. In the current economic climate, this is not something many companies in our industry can boast and I am very proud that I can in fact say this about ACG.”

ACG experienced tremendous growth in 2010 with a 110% increase in loan production from 2009. 70% of the firm’s volume came from California fundings and the residential platform accounted for 66% of total production.

Co-founder and CEO of ACG and President of ACG’s mortgage fund, The Rama Fund, Brian O’Shaughnessy states, “Our residential division has exploded. Originations and fundings have seen a dramatic growth and we feel that 2011 will exhibit similar explosive results. Our clients are finding it to be more than difficult to obtain the Prime financing they are used to and come to ACG for a real solution otherwise. We have made a tremendous move by lowering our rates and cost and we are moving in a direction away from ‘hard money’ rates to more Subprime pricing models similar to models we saw back in 2007 and 2008.”


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