twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Delta to File Bankruptcy

Company doesn't expect to continue as going concern

December , 2007

By staff

Seven months ago, Delta Financial Corp. was touting how its disciplined underwriting left it profitable with record originations. Today, the company said it will probably collapse and file bankruptcy.

A standstill agreement the company entered into during November with three warehouse lenders required it to execute a loan securitization -- which it was unable to do, the Woodbury, N.Y.-based subprime lender announced today. Consequently, the warehouse lenders issued a notice of default yesterday.

Because of the default, its obligations under the warehouse agreements can be accelerated -- leaving it obligated to make substantial capital outlays and triggering further defaults from other creditors, the statement said.

In November, Delta announced a deal for a $100 million capital infusion with an affiliate of Angelo Gordon, which had provided $60 million in August.

"In light of the foregoing, the company does not expect to be able to consummate the above-referenced transaction with Angelo Gordon," Delta said in today's announcement. "Furthermore, the company does not believe that it will be able to continue as a going concern."

As a result, Delta said it intends to halt all new business and file for bankruptcy protection -- operating as a "debtor in possession." It hopes to sell off assets and, possibly, operations in connection with its bankruptcy.

At its annual shareholder meeting in May, Delta touted its success despite problems in the subprime sector. First quarter originations of $1.2 billion were the highest ever.

It attributed the positive results to the origination of mostly fixed-rate mortgages, its avoidance of riskier mortgage products and a balance between direct and broker origination channels.

But net income, which was $4.9 million in the first quarter, almost evaporated by the second quarter, when Delta reported earnings of $0.8 million.

"The second half of 2007 is proving to be very challenging," Delta President and Chief Executive Officer Hugh Miller said in the company's second quarter earnings announcement. "Liquidity has become one of the most important issues facing lending institutions today as the credit disruption widens and rating agencies modify their reserve level requirements."

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders