Delta Financial Announces Securitization Backed by $850 Million in Mortgage Loans

  
    
  
  
    
      Delta Financial Corporation (NASDAQ:DFC) today announced it has 
      securitized $850 million of mortgage loans through its subsidiary, 
      Renaissance Mortgage Acceptance Corp. -- the Renaissance Home Equity 
      Loan Trust 2007-2.
    
    
      “While we are still cautious about the 
      securitization market on a go forward basis,” 
      stated Hugh Miller, president and chief executive officer, “we 
      saw a marked improvement in both pricing and investor demand for this 
      transaction, compared to the securitization we completed in the first 
      quarter of this year. Additionally, while we have typically issued 
      securitizations every three months, we decided to issue this transaction 
      only two months after our first quarter deal and may, depending on 
      market conditions, continue to issue securitizations more frequently in 
      the future.”
    
    
      Standard & Poor’s Ratings Services and 
      Moody’s Investors Services, Inc. rated the 
      securities. The securitization was co-lead managed by RBS Greenwich 
      Capital and Deutsche Bank Securities, and co-managed by Citigroup, Banc 
      of America Securities LLC and JPMorgan.
    
    
      About the Company
    
    
      Founded in 1982, Delta Financial Corporation is a Woodbury, New 
      York-based specialty consumer finance company that originates, 
      securitizes and sells non-conforming mortgage loans. The Company’s 
      loans are primarily fixed rate and secured by first mortgages on one- to 
      four-family residential properties. The Company originates 
      non-conforming loans through a network of approximately 3,200 
      independent brokers and the Company’s retail 
      offices. Since 1991, Delta has completed 51 asset-backed 
      securitizations, collateralized by approximately $19.0 billion in 
      mortgage loans.
    
    
      Important Information Regarding Forward-Looking Statements. 
      Certain statements contained in this press release, which are not 
      historical fact, may be deemed to be "forward-looking" statements under 
      the federal securities laws, and involve risk and uncertainties. 
      Forward-looking statements relate to, among other things, the timing of 
      our future securitization transactions, our ability to consummate the 
      securitization, and the structure and ratings for the securitization. 
      There are many important factors that could cause our actual results to 
      differ materially from those indicated in the forward-looking 
      statements. Such factors include, but are not limited to, the 
      availability of funding at favorable terms and conditions, including 
      without limitation, the availability of warehouse, residual and other 
      credit facilities; our ability or inability to continue to access the 
      securitization and whole-loan markets at favorable terms and conditions; 
      our ability to continue to originate mortgage loans; competition; loan 
      losses, loan prepayment rates, delinquency and default rates; repurchase 
      obligations, early payment default, costs and potential liabilities 
      associated with litigation, our regulatory settlements with state and 
      federal agencies and other regulatory compliance matters and changes 
      (legislative or otherwise) affecting mortgage lending activities and the 
      real estate market; general economic conditions, including interest rate 
      risk, future residential real estate values, and demand for our products 
      and services; the state of the housing market; and other risks 
      identified in our filings with the Securities and Exchange Commission, 
      including those discussed in our Form 10-K under the captions “Business–Forward 
      Looking Statements” and “Risk 
      Factors” and our Form 10-Q under the caption “Risk 
      Factors.” We disclaim any obligation to 
      update or revise any of the forward-looking information contained in 
      this press release at any future date, except as required under 
      applicable securities laws.