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Amstar Financial's 2006 Revenue Remains Strong
By Alton Gary Simpson
In 2006, revenue remained strong for Amstar Financial Holdings Inc., a holding company primarily focused upon the financial and insurance industries. It beat the industry trend and the company's own expectations with revenue of $46.6 million in fiscal year 2006. Amstar Financial's major subsidiary is Amstar Mortgage Corp., a national mortgage banking and brokering company.
"Our revenue for our last fiscal year exceeded our expectations," said Amstar president and CEO Howard Wayland. "Many firms in the industry saw dramatic declines last year and an exodus from many players in the subprime market. Our revenue continues to stay strong because, in our opinion, our employee loan officers are some of the best in the industry. We believe this year is going to show significant growth in our loan originations as a company, which would have a positive impact on our bottom line. We are also developing strategies for increased revenue from multiple streams from the customers we already serve."
In an example of how Amstar intends to increase revenue from the customers it already serves, the company has aligned itself with Amsure Title Co. Inc. with an investment in preferred stock. Amstar's agreement with Amsure allows profit sharing through dividend distribution for all title insurance provided by Amsure Title.
"We're excited about the association Amsure Title has with Amstar Mortgage," said Charles Barkley, president and CEO of Amsure Title. "With our ability to provide title insurance and closing settlement solutions, coupled with Amstar's large stream of clients, both firms are in a position to benefit."
Amstar Mortgage presents a networking potential of more than 10,000 clients per year. All clients will be required to purchase title insurance from a title services company. In accordance with applicable laws, Amstar Mortgage still allows all clients the freedom to choose another service provider. However, with this relationship Amstar can provide better service for a client, since title and closing services can be ordered through one source along with the mortgage loan. This strategic alliance allows Amstar to offer a hassle-free option for clients while adding additional revenue streams to Amstar's bottom line.
"This partnership allows us to offer our customers a simple way to handle the need for title insurance and closing services with no hassle for the client," said Rob Carter, Amstar's senior vice president of ancillary services.
In addition to title services, Amsure will offer closing services. Through this service customers will have the convenience to close their mortgages in their homes or workplaces with extended hours. This provides better customer service to clients.
According to Mr. Wayland, "We look forward to the future as we realize our vision to create a one-stop shop of quality products for our customers."
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