Consumer

Portfolio Services Inc. announced March 12 it has acquired MFN Financial Corp. The acquisition was pursuant to the terms of a previously described plan of merger, in which MFN Financial shareholders will receive $10 cash for each share of MFN Financial stock they now own.

Consumer Portfolio Services also announced that it has opened a new $100 million warehouse credit facility. The new warehouse credit

is a structured finance facility involving sales of receivables to a special-purpose entity and borrowings from a commercial paper conduit. XL Capital Assurance Inc. is providing credit enhancement.

The warehouse credit facility will enable Consumer Portfolio

Services, through its subsidiary, to borrow up to $100 million to

purchase and hold automotive receivables, pending their ultimate

disposition in future securitization transactions or otherwise.

"This merger and the closing of our new warehouse line move the

company one step closer to being an industry leader, capable of

providing superior customer service and equally outstanding returns to

shareholders," said Charles E. Bradley, Jr., president and chief

executive officer of Consumer Portfolio Services.

Bradley continued, "Having acquired MFN, we are in a position to

take advantage of exceptional opportunities, given the synergies and

complementary nature of the separate business lines."

Consumer Portfolio Services purchases, sells and services retail

installment sales contracts originated predominantly by franchised

dealers for new and late model used cars. The company finances

automobile purchases through dealers under contract across the United

States.