Accredited Reveals Margin Calls, Other Woes

Accredited Home Lenders, the nation's 12th largest subprime funder, said it has been hit with millions of dollars in margin calls and is now exploring "various strategic options."As MortgageWire went to press, its stock had been decimated on the news, plummeting 54% to a new 52-week low: $5.19. Its 52-week high is $60. In a statement, the San Diego-based non-depository said it has paid $190 million in margin calls since January to satisfy its warehouse lenders. Meanwhile, the company also is seeking waivers on its warehouse covenants. "There can be no assurance that the company will be successful in receiving any of the acquired waivers," says an Accredited statement. The lender is now in the process of cutting costs and laying off workers. Among subprime servicers, it ranks 23rd, according to the Quarterly Data Report.