PSM Holdings, Inc. Subsidiary Reports 21 Percent Increase in Second-Quarter Revenue

ROSWELL, N.M.–(BUSINESS WIRE)–PSM Holdings, Inc. (OTCBB: PSMH), a leading mortgage brokerage and banking company with more than 30 independently owned branches across the United States, today announced that its wholly owned subsidiary, PrimeSource Mortgage, Inc. (PSMI), reported a 21 percent increase in revenue for the three months ended December 31, 2009, over the comparable period in 2008.

This increase in revenue is directly attributed to the increase in new branches signed over this past year.

ìWe have been very active in maintaining our growth plan over the past couple of years, and 2009 was no exception with 11 new branches signed during the year,î said Jeffrey Smith, President and Chief Executive Officer of PSM Holdings, Inc.

In addition, PSMI recently received recertification approval from the U.S. Department of Housing and Urban Development (HUD) for 2009. This annual recertification allows PSMI to offer its clients government loans, such as increasingly popular FHA programs.

ìWe have access to 75 national wholesale lenders from whom we can obtain preferred pricing, the best interest rates, and a wide range of programs and products that can be tailor-made to meet our clientsí needs,î said Smith. ìOur latest quarterly results are indicative of our ability to grow in a troubled market, and continue to service our clients with the highest quality of service.î

About PSM Holdings, Inc.

PSM Holdings, Inc., through its wholly owned subsidiary, PrimeSource Mortgage, Inc. (PSMI), provides mortgage brokerage and banking services across the United States. PSMI is currently licensed in 17 states from Florida to California, and oversees the operations of more than 34 branches across the United States. For more information, visit http://www.psmholdings.com.

Forward-Looking Statements:

Certain statements contained herein, including, without limitation, statements containing the words “believes,” “intends” and other words of similar import, constitute “forward-looking statements” within the meaning of Section 7A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include but are not limited to that we are in the process of furthering several of the key milestones we achieved last year and creating new growth opportunities for PSM Holdings, Inc. and its subsidiaries, and that we will continue to enter new projects and strategic partnerships in 2009. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of PSM Holdings, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. PSM Holdings, Inc. disclaims any obligation to update or to announce publicly the results of any revision of the forward-looking statements contained or incorporated by reference herein to reflect future events or developments.

Jeffrey R. Smith President and CEO
575-624-4170
jeff@wewalkyouhome.com