GENERAL

HomeGold Financial, Inc., together with its subsidiaries (collectively, "HGFN" or "the Company"), is a specialty finance company primarily engaged in the business of originating and selling conforming and sub-prime first and second-lien residential mortgage loan products ("Mortgage Loans") and issuing notes payable and subordinated debentures to investors through its subsidiary, Carolina Investors, Inc. ("CII").

The Company commenced its lending operations in 1991 with the acquisition of CII, a small South Carolina mortgage lender, which had been in business since 1963. Since such acquisition, the Company has significantly...