PSM Holdings, Inc. (OTCBB: PSMH) announces significant increase in production from its subsidiary, PrimeSource Mortgage, Inc., in October 2010 over October 2009, and again in November 2010 over November 2009. The production closed in the months of October and November represented an increase of 24% and 29%, respectively.

The second quarter ending 12/31/2010 has continued its positive financial trend noted in first quarter ending 9/30/2010. The increase in production has come from the additional branches signed earlier in the year, but also from the record low rate environment.

PSMH continues their talks with a possible merger/acquisition candidate, and expects some further news regarding that in the next quarter ending 3-31-2011.

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 15 states across the U.S., and oversees the operations of more than 30+ 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.

PSM Holdings, Inc.
Jeffrey R. Smith, 575-624-4170
President and CEO
jeff@wewalkyouhome.com