CIRCLELENDING ESTABLISHES THE BANK OF MOM AND DAD

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Loan Administration Company Helps Families Overcome Lending Obstacles
Waltham, MA - December 27, 2006 - CircleLending, the leader in formalizing and servicing mortgage loans between friends and family, is bringing mortgage services to the masses through structured private loans. Widely regarded as a market pioneer in the financial services industry for designing products to manage personal loans, CircleLending provides services that reduce the financial risks, administrative hassles and emotional pitfalls of interpersonal loans.

Through CircleLending, the qualification requirements for a private mortgage are far less restrictive than those at a bank, and with a private mortgage, borrowers benefit from interest rates that are lower than any bank mortgage available. In addition, lenders can receive a higher return on their investment than they would through other investments.

According to Asheesh Advani, president and CEO of CircleLending, private mortgages are used in all of the same ways that traditional bank loans are, such as to:

Purchase a home: The money borrowed can be used for the entire purchase of the home, the down payment or to supplement bank financing.
Refinance a bank mortgage: The money can be used to lower the interest rate, eliminate PMI and keep interest payments within the family rather than the bank.
Renovate a home: The money can be used in place of a home equity loan.
Owner-finance a home: The seller can finance the transaction allowing the buyer to pay all or part of the purchase price over time.
For home financing, private mortgages between relatives and friends are particularly popular because they provide compelling benefits to both the borrower and lender. By setting up a private mortgage instead of a traditional bank mortgage, the borrower can realize thousands of dollars in potential interest savings and tax deductions, while the lender can benefit from a monthly income stream and a predictable rate of return. All in all, a private mortgage with CircleLending helps keep wealth where it belongs - in the family.

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