Option One May Curtail NJ Lending

Option One, one of the largest subprime lenders in the United States, said its production volume could drop dramatically in New Jersey after a new law there goes into effect in late November.In an interview with MortgageWire Monday morning Option One executive vice president Steve Nadon said, "We could be doing 90% less loans" in New Jersey depending how the rating agencies react to the state's "Home Ownership Security Act." Based in Irvine, Calif., Option One, a subsidiary of H&R Block, funds about $80 million a month in nonconforming product in the state. The N.J. law is intended to reduce predatory lending but provisions of the act could hurt all nonconforming lenders because of what lenders feel are onerous provisions. Mr. Nadon is chairman of the Coalition for Fair and Affordable Lending, which is promoting Federal legislation to protect consumers from predatory lenders.