Accredited Home Lenders, Home Funds Direct - Non-Prime Lender - Wholesale, Retail
Update - 2007-10-12: Lone Star Funds V, a private equity investment firm, acquired Accredited on 2007-10-12.
Update, Sept. 14: We have added Home Funds Direct to this implosion, as it is the retail division of Accredited. The subsidiary's web site gives simply the following notice now:
Original entry - 2008-06-04: We have been watching Accredited Home Lenders for months. This morning, we have recieved word that they have ceased accepting new loan submissions. A formal announcement has been emailed out:
A CNN article notes that Accredited will be cutting 1,600 jobs.
Original Ailing/Watch posting:
In the same kind of liquidity crunch that has taken out numerous other non-prime lenders. Margin calls have hit it for $190 mln in 2007. The company is now exploring firesale-type options, workforce reductions, and just "the kindness of strangers" in general. Stay tuned.
The stock has tanked from about $20 to $4 in March.
Update March 16th: Accredited has managed a fire sale selling off loans at a discount to buy some time to consider "strategic options." By strategy, they mean scrambling to find a someone to take their business over.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.