NEW YORK, Oct. 13, 2011 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) -- In the past two months, Manhattan Bridge Capital, Inc. has experienced an unusually high rate of loan returns. Through research and analysis we learned that our customers find it is easier to sell their investment properties since their customers are being readily approved for low rate mortgages. In fact, we found out that it became as easy as before the 2008 financial meltdown for a low income home buyer to arrange a good mortgage in New York City. In many cases, the mortgages are FHA, government backed loans.
Another strong indication that the conventional banks are more open to lending is that we see a significant increase in paying off short-term loans by refinancing. Our borrowers who invest in income producing properties, enhance the value of their properties and attempt to pay off Manhattan Bridge Capital's loans by refinancing in conventional banks, taking long-term commercial mortgages. These profile borrowers are also paying off their loans faster than before.
Therefore, we have received a significantly high amount of cash in the past two months. We find this development encouraging and hope it will last. Obviously, this enhances our returns, as the upfront points and other fees represent a higher annual yield. We took a few steps in order to protect our interest income including launching an advertising campaign and hiring more brokers and sales people in order to redeploy the returned funds.
This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
CONTACT: Assaf Ran, CEO (516) 444-3400
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