American Business Financial Services Inc., Philadelphia, has announced the refinancing of an off-balance-sheet mortgage warehouse conduit and the transfer into the conduit of $133 million of mortgage loans previously held in other warehouse facilities.The subprime lender said it expects the entire $173 million of mortgage loans in the conduit to be available for future sale or securitization. The financing was arranged with Greenmont Inc., a conduit controlled by an unnamed large international financial institution. Albert W. Mandia, executive vice president and chief financial officer of ABFS, said the company believes the refinancing "will accelerate our ability to make progress under our previously announced adjusted business model, which focuses on originating and selling whole loans in the secondary market, supplemented by smaller private securitizations in lieu of reliance on the origination of loans for sale in large, publicly underwritten securitizations." ABFS ran into some financial trouble earlier this year when it found it difficult to find buyers for its securities.
ABFS Refinances Warehouse Conduit
October 21, 2003, 2:00 p.m. EDT 1 Min Read
