PSMH: New Consultant Contract and Other Corporate Changes
Ann Heffron, CFA
PSM Holdings, Inc. ) recently announced that subsidiary PrimeSource Mortgage, Inc. has entered into a new consultant contract for the CFO services of Randy Compton, CPA, with CORE Business Advisors, PLLC. We believe this is an important step in the evolution of PSMH as it transitions into a larger publicly-traded entity.
Mr. Compton, who has an extensive background in operations and fnance for companies in the financial services industry, should aid PSMH as it tackles the challenges of integrating acquired companies and plans for future acquisitions. Furthermore, we expect that his services will benefit the financial planning and forecasting functions that this growth entails.
In other news, PSMH announced it has completed a domicile change for subsidiary United Community Mortgage Corp. (UCMC) to Delaware from New Jersey, and that UCMC has been renamed PrimeSource Mortgage, Inc. (PSMI) Importantly, PSMI will now tackle licensing requirements for states in which it does not already operate. According to the Company’ latest 10-K, license applications are pending in 15 states, bringing the total to over 30 states where PSMI will be conducting business when the licensing process has been completed.
PSM Holdings, Inc. is engaged in the businesses of mortgage banking, in which PSMH both originates and funds mortgage loans through its own warehouse lines of credit and currently accounts for about 90% of closed loans, as well as mortgage brokerage, in which PSMH originates mortgage loans funded by over 50 third-party lenders. PSMH immediately sells these loans to its third-party lenders or into the secondary mortgage market. The Company offers a full range of mortgage loan products, including adjustable rate mortgages, fifteen, twenty, and thirty-year fixed rate loans, and balloon loans with a variety of maturities, as well as refinancing, construction loans, second mortgages, debt consolidation, and home equity loans.
PSMH had total assets of $5.1 million at the 2011 fiscal yearend on June 30, 2011, total revenues of $3.9 million for the 2011 fiscal year, and closed 845 mortgage loans, worth $144 million, during this period. Operations are carried out by the Company’s wholly owned subsidiary, PrimeSource Mortgage, Inc. (PSMI). Through this subsidiary, PSMH operates and is licensed in the following 17 states: Arkansas, California, Colorado, Georgia, Idaho, Iowa, Kentucky, Louisiana, Montana, Nebraska, New Jersey, New Mexico, New York, Oklahoma, Texas, Washington, and Wyoming.
To view a free copy of our most recent research report on PSMH, visit Ann Heffron's page at http://scr.zacks.com/ .