Delta Closes Wholesale Offices

Delta Financial Corp., Woodbury, N.Y., has closed its satellite wholesale offices in Florida, Texas and California and eliminated 300 jobs, a 20% cut in its workforce."The rapid deterioration of the credit markets has caused issues in our sector that are beyond our control," explained Hugh Miller, president and chief executive. "As we continue to make the necessary rate increases and program cuts in order to address the changing business environment, the result in the near term is a likely reduction in loan production. Accordingly, it is with sadness that we must reduce our workforce to address the anticipated decrease in originations. We deeply regret having to take this action, but it is the fiscally responsible decision to make at this time." Delta expects to record a pre-tax charge of between $2.0 million and $2.5 million for the third quarter because of the workforce reductions and related expenses.