MBI Financial Increases Monthly Mortgage Funding Capacity to over $100 Million

Agreements for Warehousing Lines of Credit Help to Accommodate Expected Loan Origination Growth

DALLAS--()--MBI Financial, Inc. (OTCBB: MBIF), a national financial services holding company that is consolidating regional mortgage brokerage companies into MBI Mortgage, Inc., its wholly owned subsidiary and mortgage banking operation, confirmed today that the company has secured the capacity to fund over $100 million in mortgage loans.

Commenting on the announcement, John M. Farkas, President of MBI Mortgage Inc., stated, We expect that MBI Mortgage, Inc.s loan volume will increase as our parent companys mortgage brokerage acquisition strategy continues. Accordingly we must seek to ensure that we have the adequate resources to support growing demand as a key factor to our continued success. With facilities such as warehouse lines of credit, we have the ability to fund loans in our own name, control the process of drawing loan documents and funding, achieve permanent funding status on our loans with less risk, and capture more of the revenue associated with each a mortgage loan managed through our system. With our current resources we now have the ability to fund over $100 million in mortgage loan volume every thirty days.

About MBI Financial, Inc.

MBI Financial, Inc. is a national financial services holding company that is in the process of consolidating regional mortgage brokerage companies into its wholly owned subsidiary and mortgage banking operation, MBI Mortgage, Inc. The companys strategy is to expand the acquired mortgage brokerage firms by setting up and receiving mortgage brokers loans into its mortgage banking operation and to also grow these businesses with proven marketing programs, better and faster loan approvals, and the introduction of new and expanded loan programs. The company also believes that it can access untapped revenue potential within the mortgage origination process by creating significant cross selling opportunities and introducing a variety of financial services products at different levels of the mortgage origination and funding chain. Through initial acquisitions, MBI Mortgage, Inc. currently owns thirteen locations with offices in Dallas TX, Austin TX, Houston TX, Conroe TX, San Antonio TX, El Paso TX, Flower Mound, TX, Bedford TX, Laredo TX, Palantine IL, San Diego CA, Anaheim CA, Miami, FL and is expected to be licensed to operate in twenty four additional states by June 30 2007. For additional information, please visit the companys website at www.mbifinancial.com

This press release may contain statements deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act or Section 21E of the Exchange Act. Any statements that are not statements of historical fact may be deemed forward-looking statements. Forward-looking statements are not meant to predict or guarantee actual results, performance, events, or circumstances and may not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates, and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Forward-looking statements may include, without limitation, statements concerning business, financial and growth strategies and objectives, revenues, costs and earnings projections, acquisitions, capital, liquidity, and assumptions relating to any of these statements. Factors that may influence forward-looking statements or cause actual results to differ materially from those described or anticipated by the forward-looking statements may include, without limitation:

  • changes in interest rates;
  • the Companys ability to get additional financing or arrange suitable warehouse loan facilities,
  • the Companys ability to find, integrate, and improve suitable acquisition companies;
  • other federal and state laws and regulations;
  • general economic conditions;
  • competitive factors and pricing pressures;
  • our dependence on key producers, and services of key personnel;
  • risks associated with acquisitions;
  • changes in income taxes;
  • significant intangible assets; and
  • our dependence on information processing systems and risk of errors or omissions.

Because of the risks and uncertainties related to these factors and the forward-looking statements, readers are cautioned not to place undue reliance on the forward-looking statements. There can be no assurance that any events or results described in any forward-looking statement will actually occur or be achieved. We undertake no obligation to publicly revise the forward-looking statements to reflect events or circumstances that arise after the date hereof or to reflect the occurrence of unanticipated events or circumstances. Readers should carefully review the risk factors described above and in other documents filed by the Company with the SEC. Readers are specifically directed to the discussion under "Risk Factors in the Companys most recent annual report.

Contacts

MBI Financial Inc.
Patrick A. McGeeney, 214-468-0000 Ext.205
President & Chief Executive Officer
patrickm@mbifinancial.com
or
Cameron Associates
Al Palombo, 212-554-5488
Investor Relations
al@cameronassoc.com

Contacts

MBI Financial Inc.
Patrick A. McGeeney, 214-468-0000 Ext.205
President & Chief Executive Officer
patrickm@mbifinancial.com
or
Cameron Associates
Al Palombo, 212-554-5488
Investor Relations
al@cameronassoc.com