Fremont Selling Loans at a Loss
Fremont General Corp. here has agreed to sell $4 billion in subprime loans to an unnamed buyer (or buyers) - but will book a $140 million loss on the deal.
It is unclear whether servicing rights tied to these loans also are being sold. The lender could not be reached for comment. FGC is trying to sell its subprime division, which services $27 billion in product but has stopped funding new originations. Credit Suisse is advising it.
FGC, a depository, said it has received "approximately $950 million in cash from the first sale installment under the agreements with the remaining sales under the agreements expected to be completed over the next several weeks."
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