NetBank Takes Huge Loss, Signs OTS Pact

NetBank -- which is restructuring its entire mortgage operation -- posted a $73 million loss in the third quarter, while revealing that it has signed a supervisory agreement with its regulator, the Office of Thrift Supervision.In its earnings release, the company said it has been hurt by loan buybacks, noting that "Although repurchase demands improved from last quarter, they remained at an elevated level." The Atlanta-based NetBank recently pulled the plug on its subprime affiliate, Meritage Mortgage, Beaverton, Ore. In mid-October, it sold 70% of its residential servicing portfolio ($8.5 billion in receivables), booking a $19.3 million loss on the sale. The company can be found online at http://www.netbank.com.