Transnational Financial Network Announces Suspension of Wholesale Lending Activities

Filed Under Lenders With Problems 2007, Mortgage Industry Press Release
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SAN FRANCISCO–(BUSINESS WIRE)–Transnational Financial Network, Inc. (Pink Sheets:TRFN) announced today that it had suspended its wholesale mortgage lending operations due to the turmoil in the mortgage industry. It would continue its retail operations.

The turmoil in the mortgage industry has made wholesale mortgage operations almost impossible, said Joseph Kristul, Chief Executive Officer. Buyers of mortgages have ceased to fund broad categories of mortgages, often refusing to honor previous commitments to purchase mortgages that we have funded. In other instances, mortgage buyers will modify the terms on which they have issued previous commitments. The inconsistent responses consume capital, and we often take losses on mortgages we have funded. With our severely diminished capital base, we lack the resources to continue wholesale operations in this environment.

Mr. Kristul continued, We have reduced our staff to a handful of senior people who will enable us to continue our San Francisco retail operations. We have closed our Campbell retail offices.

About Transnational Financial Network, Inc.

Transnational Financial Network, Inc. is currently a retail mortgage lender with offices in San Francisco, California.

This News Release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

Contacts

Transnational Financial Networks, Inc.
Joseph Kristul, 415-242-7800

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