Silverado Financial Incorporated (Silverado) is a mortgage banking company focused on providing non-prime borrowers, and individuals who generally do not satisfy the credit, documentation or other underwriting standards set by more traditional sources of mortgage credit, with access to capital for the purchase and refinancing of one- to four-family residential properties. The Company originates mortgage loans through eight retail centers in Pleasanton, Campbell, Walnut Creek and Tustin, California; Phoenix, Arizona; Libertyville, Illinois; Wexford, Pennsylvania, and Forest Hill, Maryland. Silverado originates both fixed and adjustable-rate mortgages for purposes such as debt consolidation, refinancing, education, home improvement and real estate purchase. During the year ended December 31, 2004, the Company had $175 million of mortgage loans. Silverado sells its loans to third-party investors (correspondent lending partners) in the secondary mortgage market.