Accredited Shuts Production Operations

With its acquisition by Lone Star Fund V (U.S.) LP in doubt, Accredited Home Lenders Holding Co., San Diego, has announced a restructuring program that shuts down its U.S. mortgage originations operations for the time being.The company said it is closing all of its retail operations as of Sept. 5. This consists of 60 retail branches, five support locations and 480 people. The only retail to continue to operate will be the San Diego-based customer retention unit. Furthermore, five of the 10 wholesale divisions will shut on Sept. 5. Overall, it will reduce its wholesale workforce by 490 people, leaving 340 people employed. In addition, Accredited said it is not accepting any new applications in the U.S. Its headquarters staff will be cut by 180 positions. The company said the moves do not affect its Canadian mortgage originations business or its U.S. loan servicing platform. Accredited said this restructuring, plus the $1 billion loan trade will allow it to survive off of securitization cash flows, servicing income and other income until it can resume loan origination operations.