Westmark Group Holdings Inc. moves to acquire New Jersey-based mortgage banking company.

DELRAY BEACH, Fla.--(BUSINESS WIRE)--July 12, 1995--Westmark Group Holdings Inc. (NASDAQ:WGHID) announced Wednesday that it has signed a definitive agreement to purchase the production assets of Greentree Mortgage Co. L.P., a privately held mortgage banking company headquartered in Marlton, N.J.,

Westmark has already paid $175,000 and the balance will be paid from the $5 million raise being done by Brookstreet Securities.

Greentree Mortgage currently has a mortgage pipeline of approximately $100 million, and funded some $30.5 million in residential mortgage loans in June 1995. Greentree employs 80 production staff members at its New Jersey headquarters and branch offices in Tampa, Fla., and Phoenix.

Greentree will operate as a wholly owned subsidiary of Westmark Group Holdings with Robert J. Conover retaining his position as chief executive officer of Greentree Mortgage.

Westmark projects the combined companies will earn in excess of $5 million during the year beginning Oct. 1, 1995 and ending Sept. 30, 1996. Projected mortgage fundings in the month of October are as follows: -0-

            Greentree wholesale      $40 million
            Greentree retail           4 million
            Greentree B/C              4 million
            Westmark wholesale        19 million
            Westmark B/C               6 million
                                     -----------
                                     $73 million

Michael F. Morrell, chairman, president and chief executive officer of Westmark Group Holdings Inc., stated: "The Greentree acquisition is the one we have been waiting to do. With this acquisition, Westmark immediately becomes a serious national player in the mortgage production business. Based upon our preliminary analysis, we project net operating profits of approximately $500,000 in the month of October 1995. We project the savings generated by consolidation will amount to over $200,000 per month. Westmark had already begun a turnaround and this move clinches it."

Westmark Group Holdings Inc., through its subsidiary Westmark Mortgage Corp., offers a full range of products including standard agency programs, construction loans and non-agency (B and C) loans. The company underwrites and funds its own mortgages and sells them to a variety of sources including Freddie Mac, Fannie Mae, and Ginnie Mae.

CONTACT: Westmark Group Holdings Inc., Delray Beach

Michael F. Morrell, Chairman, President and CEO

407/243-8010