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Aames Financial Corporation is a leader in the field of subprime
home equity lending where it serves borrowers whose needs are
not being met by traditional mortgage lenders. The Company makes
it possible for homeowners with less-than-perfect credit histories
or nonconforming financial situations to access the financing
they need.
The Company originates and purchases loans through three primary
production channels retail, broker and correspondent. On June
30, 1997, Aames Home Loan, the Company's retail arm founded in
1954, operated 56 offices serving 24 states. One Stop Mortgage,
the Company's broker subsidiary, operated 37 offices serving wholesale
clients in 33 states. The Company's correspondent division buys
funded loans from mortgage bankers across the nation.
As a mortgage banker, Aames sells the loans it originates, as
well as those purchased from third party originators, to institutional
investors in the secondary market either through securitizations
or whole loan sales.
As a loan servicer, Aames provides the specialized skills, systems
and experience necessary for success in the subprime market. The
Company retains the servicing rights to substantially all of the
loans it originates or purchases and had a servicing portfolio
of $3.17 billion at year end.
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