Capital Plus Financial Announces Continuation of 2020 Bond Application into 2021
Crossroads Systems (OTCQB: CRSS) announced that the application for the Bond Guaranty Program by its subsidiary, Capital Plus Financial (CPF), will continue into 2021. This delay, caused by COVID-19 assessments in the residential market, does not overshadow CPF's strong portfolio growth over the past decade. CEO Eric Donnelly expressed disappointment over the delay but remains optimistic about CPF’s performance, citing successful management of forbearance agreements during the pandemic, marking resilience among borrowers, especially in the Texas housing market.
- Capital Plus Financial has demonstrated continued portfolio growth over the last decade.
- CEO Eric Donnelly reported successful completion of 232 forbearance agreements with only 2 borrowers delaying payments.
- The Bond Guaranty Program application review was delayed into 2021 due to COVID-19 impacts.
DALLAS, Sept. 14, 2020 /PRNewswire/ -- Crossroads Systems, Inc. (OTCQB: CRSS) ("Crossroads" or the "Company"), a holding company focused on investing in businesses that promote economic vitality and community development, through its wholly owned subsidiary Capital Plus Financial ("CPF"), an award-winning community development financial institution ("CDFI"), was notified by the CDFI's Bond Guaranty Program that CPF's 2020 application for the Bond Guaranty Program will be continued into the 2021 application year.
The application review was not completed due to an overriding need to assess and evaluate the impact of COVID-19 on the single-family residential space over the upcoming months. While all asset classes have been affected by the pandemic and particular attention has been placed on the residential mortgage market in general, CPF has demonstrated continued portfolio growth over the last decade.
"Though we are disappointed that our application's response was delayed into 2021, we are very pleased with the performance of our portfolio and remain confident in our ability to continue growing profitably," said Crossroads CEO Eric Donnelly. "As we indicated in our quarterly release last week, we completed a total of 232 forbearance agreements between March and July 2020 of which all but 2 borrowers have made their next payments. We are very proud of our borrowers for their resilience during these unprecedented times and very fortunate to be in the single-family housing and lending business in a fast-growing market such as Texas. We will continue to provide all the required updates to the BGP and await their next steps for the 2021 application year with the hope of closing quickly given the amount of diligence and underwriting done on CPF during the 2020 round."
About Crossroads Systems
Crossroads Systems, Inc. (OTCQB: CRSS) is a holding company focused on investing in businesses that promote economic vitality and community development. Crossroads' subsidiary, Capital Plus Financial (CPF), is a certified Community Development Financial Institution (CDFI) and certified B- Corp, which supports Hispanic homeownership with a long term, fixed-rate single-family mortgage product.
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements that relate to the business and expected future events or future performance of Crossroads Systems, Inc. and Capital Plus Financial and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about Crossroads Systems' and Capital Plus Financial's ability to implement their business strategy, and their ability to achieve or maintain profitability. The future performance of Crossroads Systems and Capital Plus Financial may be adversely affected by the following risks and uncertainties: economic changes affecting homeownership in the geographies where Capital Plus Financial conducts business, developments in lending markets that may not align with Capital Plus Financial's expectations and that may affect Capital Plus Financial's plans to grow its portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological change in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion of these factors and risks, investors should review Crossroads Systems' annual and quarterly reports. Forward-looking statements in this press release are based on management's beliefs and opinions at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement, and Crossroads Systems undertakes no duty to update this information to reflect future events, information or circumstances.
©2020 Crossroads Systems, Inc., Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All trademarks are the property of their respective owners.
Company Contact:
Crossroads Systems
ir@crossroads.com
Investor Relations Contact:
Gateway Investor Relations
Matt Glover and Tom Colton
CRSS@gatewayir.com
(949) 574-3860
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SOURCE Crossroads Systems; Capital Plus Financial
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