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(Sherman Oaks, CA, August 13, 2007) – Metrocities Mortgage LLC (“Metrocities”), a national leader in the residential mortgage lending market, today announced that it has satisfied known and unknown claims related to problem loans and secured investor funds to create new mortgages. This financial plan is the result of a recent strategic investment from Prospect Mortgage Company LLC, an affiliate of $2.2 billion private equity fund group Sterling Partners.

“We anticipated the current investor climate late last year and worked hard to put our house in order,” said Metrocities CEO Paul Wylie. “We now have a clean financial slate and ample funding to do new business across the country.” According to Wylie, Metrocities is recruiting more loan officers and launching company-wide technology upgrades as part of a plan to increase market share.

“Metrocities has historically run counter to industry cycles and built long-term relationships,” continued Wylie. “The issues of bad loans written on liberal guidelines are not going to hurt us because of our well thought-out positioning.”

“Sterling Partners has invested in Metrocities Mortgage as part of a long-term commitment,” said Tom Wippman, Managing Director, Sterling Partners. “We understand that the mortgage and real estate industries are in a down cycle. We’ve entered other industries at similar low points and realized excellent results through patience and effective strategies. Sterling believes in Metrocities and the future of the mortgage industry.”
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Metrocities Mortgage
Established in 1989, Metrocities Mortgage is ranked in the top 1% of residential mortgage lenders nationwide for closed loan volume. Headquartered in Sherman Oaks, California, Metrocities Mortgage has become a leading nationwide lender based on unique loan programs and successful joint ventures (affiliated business arrangements) with key real estate companies, credit unions, financial advisor/business management companies, builders and other affinity groups. Loan Officers have access to a broad base of loan programs and proprietary search engine technology enabling them to find the best loan products for their clients. As America’s Best Relationship Lender^SM, Metrocities Mortgage is renowned for its in-house lending expertise, wide selection of loan programs and Heroic Customer ServiceSM. To learn more, visit www.metrocitiesmtg.com.

Sterling Capital Partners
Sterling Capital Partners is an affiliate of Sterling Partners (“Sterling”), a private equity fund group with over $2.2 billion of capital under management. Founded in 1983, Sterling partners with superior management teams, invests in companies with strong business fundamentals and leverages the firm’s proprietary methodology for acceleration of growth. Sterling collaborates closely with entrepreneurs and business owners to achieve the growth standard in their industry. Sterling Capital Partners assumes controlling interests in middle-market companies through equity investments ranging from $15 million to over $100 million per company. Industries of focus include financial services, education, healthcare, business services, direct marketing, specialty manufacturing and distribution, and technology.  (www.sterlingpartners.us)