Resource Bancshares Entertaining Offers?

Resource Bancshares Mortgage, Columbia, S.C., the nation's 18th largest residential lender, is entertaining offers for the company, sources have told MortgageWire.A Resource spokesman declined to comment on the matter. While most mortgage stocks have been correcting in the past few months, Resource (symbol: RBMG) has been holding up quite well. In late morning trading Tuesday its share price was up $1 to $18.50, way above its 52-week low of $11 and $4.75 under the high of $23.25. A non-depository, Resource is one of the few publicly traded conventional lenders left of any size. Last year it dodged a bullet when its purchase of Walsh Securities, Parsippany, N.J., a subprime lender, fell apart. Walsh ran into difficulties when it was discovered that it had funded at least $24 million worth of land flips. Many investment bankers said Resource was overpaying for Walsh, a belief that later proved true. Besides its bread and butter conventional business, Resource is now funding subprime loans.