Plagued by EPDs, Aegis Stops Funding

Published August 07, 2007, 2:00 p.m. EDT

1 Min Read

Nonconforming lender Aegis Mortgage Corp., Houston -- which is controlled by hedge fund giant Cerberus Capital -- ceased funding loans on Monday.A spokeswoman for Aegis said, "We are looking at all our options right now," adding that no office closures or layoffs have occurred. Cerberus is in the process of buying Option One Mortgage Corp., Irvine, Calif., which is owned by H&R Block. In mid-July, National Mortgage News reported that Aegis had placed its servicing platform on the auction block. An internal memo provided to NMN says Aegis is plagued by $100 million in early payment defaults, or EPDs.

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