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                                                                      EXHIBIT 99

UNITED COMPANIES FINANCIAL CORPORATION
(UNITED COMPANIES LOGO)

                                                 FOR MORE INFORMATION, CONTACT:

                                                 Lawrence J. Ramaekers
                                                 Chief Executive Officer
                                                 (225) 987-2760

                                                 RELEASE DATE: DECEMBER 29, 1999

                UNITED COMPANIES SIGNS LETTER AGREEMENT WITH EMC
              MORTGAGE CORPORATION FOR THE SALE OF ITS WHOLE LOAN
             PORTFOLIO, RESIDUAL INTERESTS AND SERVICING OPERATION

     BATON ROUGE, LA - December 29, 1999 - United Companies Financial
     Corporation (OTC: UCFNQ), which has been operating in chapter 11
     reorganization since March 1, 1999, announced that today it signed a
     letter agreement for the sale of substantially all of the assets related
     to its mortgage servicing, whole loan portfolio and residual interests to
     EMC Mortgage Corporation, a wholly-owned subsidiary of The Bear Stearns
     Companies, Inc., for an aggregate purchase price of approximately $895
     million subject to adjustments. Cash on hand and certain other assets are
     not included in the sale. The transaction is subject to the negotiation
     and execution of definitive documentation, which is expected to be
     completed in January 2000. The sale is further subject to the approval of
     the United States Bankruptcy Court and the submission of higher or better
     offers pursuant to bidding procedures to be established by the Bankruptcy
     Court, as well as the satisfaction of certain other conditions. The letter
     agreement also provides that United Companies may bifurcate the proposed
     transaction and sell its whole loan portfolio to another bidder or
     accelerate the sale of the whole loan portfolio to EMC.

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     On June 1, 1999, United Companies sold its loan origination platform to
Aegis Mortgage Corporation. Since that time, United Companies has continued to
service a multi-billion dollar portfolio of home equity and manufactured
housing loans while developing strategies to address its financial
difficulties.

     "The EMC transaction will allow the Company to move closer to completing
its reorganization efforts. We believe that this transaction, and the
Bankruptcy Court approval process, will maximize the value of United
Companies," said Lawrence J. Ramaekers, Chief Executive Officer of United
Companies.

     United Companies is a specialty finance company that services
non-traditional consumer loan products.

     The following is a "Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: The statements contained in this release that
are not historical facts are forward-looking statements based on the Company's
current expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that future
developments affecting the Company will be those anticipated by the Company.
Actual results may differ from those projected in the forward-looking
statements. These forward-looking statements involve significant risks and
uncertainties (some of which are beyond the control of the Company) and are
subject to change based upon various factors, including but not limited to the
following risks and uncertainties: the developments in and outcome of the
Company's Chapter 11 reorganization proceedings; the ability to access loan
facilities in amounts necessary to fund the Company's operations; the
successful disposition of its existing loan portfolio and repossessed real
estate properties; the ability of the Company to successfully restructure its
balance sheet; the ability of the Company to retain an adequate number and mix
of its employees; the effect of the Company's policies including the amount of
Company expenses; actual prepayment rates and credit losses on loans sold as
compared to prepayment rates and credit losses assumed by the Company at the
time of sale for purposes of its gain on sale computations; the quality of the
Company's owned and serviced loan portfolio including levels of delinquencies,
customer bankruptcies and charge-offs; adverse economic conditions;
competition; various legal, regulatory and litigation risks and other risks
detailed from time to time in the Company's Securities and Exchange Commission
filings. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as the result of new information, future
events or otherwise.


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