Block Taking $19M Hit on Option One Cuts

Published May 18, 2007, 2:00 p.m. EDT

1 Min Read

H&R Block will take a $19 million pretax charge in connection with a restructuring plan for its subprime wholesale affiliate, Option One Mortgage Corp., Irvine, Calif.H&R Block revealed the financial hit in a May 17 filing with the Securities and Exchange Commission a day after MortgageWire broke the news that Option One was closing 12 mortgage processing offices and cutting 600 workers. In the SEC filing, Block upped the job loss number to 615. The charge will be taken in Block's 2008 fiscal year. Option One is slated for sale to hedge fund Cerberus Capital. The deal is expected to close in the fall. Cerberus also owns Aegis Mortgage and 51% of GMAC.

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