By now, Fremont’s subprime unit is the gift that keeps on giving. Even after announcing this last week that 5 or 6 would-be “suitors”, the company makes it clear that they may still not be able to get out.
Fremont, a major home lender to people with weak credit, disclosed last week that it planned to leave the subprime mortgage business and agreed to a cease-and-desist order with federal regulators related to improper lending practices.
“No agreement has yet been reached regarding the sale of this business and there is no assurance that the company will be able to enter into any transaction,” Fremont General said in a Securities and Exchange Commission filing Friday.
Faced with not being able to get out, the residential lending unit would be shut down permanently. Just how many employees this impacts is currently unavailable. If you know, email me, as it will be interesting to have some statistics to go along with it. If you recall, employees were sent home this last week on Monday; kinda sounds like the “temporary furlough” Mortgage Lenders Network sent their employees on in January.
On related News, FMF Capital has decided to execute an “orderly wind-down of business” which is business code for fold like a house of cards.
ML Implode-o-Meter gives the juicy details:
Fly by night, much?
And we are left wondering… who’s next?
Kinda brings to mind the phrase. “Coyote Ugly”
Subprime is coyote ugly.