Another Lenders Survival Is Questionable
This is just one of our articles referencing the financial crisis, crash of the housing market, subprime, and more:
Accredited Home Lenders Holding (LEND), a subprime mortgage lender that agreed in June to be acquired, said its survival is in doubt and bankruptcy is possible, sending its shares down more than 50%. In its delayed 2006 annual report filed Thursday with the Securities and Exchange Commission, San Diego-based Accredited said it could not guarantee it would remain a going concern as market conditions worsen for subprime lenders.
The company’s plunging stock price — it’s gone from near $15 in June to around $5 or less now — has raised speculation that Accredited might need to renegotiate its June 4 agreement to be acquired by private equity firm Lone Star. That transaction valued Accredited at $400 million, equal to $15.10 per share.
Dozens of subprime lenders, which make loans to people with less than prime credit, have quit the industry this year as losses and defaults mounted. Several, including New Century Financial, have sought bankruptcy protection. Accredited said it has suffered from the same problems, exacerbated by its October purchase of Aames Investment Corp., a Los Angeles subprime lender. It also said it faces “steeply declining” employee morale.
More Mortgage Crisis Articles Like This One
- Mortgage Lenders Network Job Losses
- CIT Group Quits Home Loan Business
- What did the U.S. Government offer lenders to overlook them?
- Is MERS the Weak Link in Mortgage Recording
- Subprime Mortgage Blues Spread to Prime Loans
Search for more of our articles. 620 articles have been published in this section
Twitter users - the Tiny Url for this post is http://tinyurl.com/294vr9z
This post has 2 comments
August 7th, 2007
Short & sweet. LOWER prime rate for consumers. Problem resolved.
August 3rd, 2007
Shares of Accredited Home Lenders Holding Co. (Nasdaq: LEND) have taken a turn for the better on Friday, August 3, soaring in pre-market trading after the non-bank mortgage lender issued a statement late Thursday evening stating that it is working toward closing a merger with Lone Star.
This news comes after the stock plunged 35% Thursday on account of Accredited’s filing with the Securities and Exchange Commission in which the company said it might not be able to remain solvent in the face of the subprime mortgage market meltdown.
Trackbacks