Transnational Terminates Texas Cap Purchase

Transnational Financial Network Inc., a San Francisco-based wholesale and retail mortgage banking firm, has announced an agreement with Texas Capital Bank to terminate contractual arrangements regarding TFN's acquisition of the bank's mortgage lending division.TFN said it has agreed to pay certain operating losses -- mutually agreed to be $500,000 -- incurred by the division between Sept. 30, 2006, and March 31, 2007. Part of the total, $160,000, has already been paid, and the remaining $340,000 is slated to be paid in three installments, the last in June 2008, the company said. "Given the current volatility in the mortgage industry and the industry's difficulties, we believed that we should focus upon our existing business," said Joseph Kristul, Transnational's chief executive officer. "The new operations would have required our personnel to be involved in their integration rather than the challenges that confront us in our established markets." The company can be found on the Internet at http://www.transnational.com.