Delta Touts Positive Cash Flow

Delta Financial Corp., Woodbury, N.Y., has announced that it expects to generate positive cash flow from its operations in the fourth quarter despite the market turmoil that has forced some subprime lenders to restructure.Delta said its "conservative approach" to home equity lending has enabled it to remain profitable "without a significant departure from its existing business plan or a significant restructuring of its business, while during the same period, many companies in the sector have laid off employees or drastically restructured their business operations primarily due to liquidity concerns." Delta said it maintains $750 million of committed warehouse lines, nearly double the amount of its $400 million securitization in the fourth quarter. Prepayment speeds slowed and were consistent with the company's assumptions, Delta said. The company cited its use of the more conservative "cash-out" method of accounting for retained interests in securitizations, which would be required of all companies under proposals issued by the Financial Accounting Standards Board and the Securities and Exchange Commission. Delta's website address is http://www.deltafinancial.com.