Lenders have reduced or eliminated some credit lines to Option One Mortgage Corp. in Irvine, said parent H&R Block in a filing today.
• J.P. Morgan ended a $1 billion line.
• Citigroup and Wells Fargo ended a $1 billion line.
Here’s why:
The Terminated Facilities were terminated in light of (i) the pending expiration of waivers of “minimum net income” covenants contained in the Terminated Facilities (which generally required OOMC to maintain a cumulative minimum net income of at least $1 on a rolling basis for the most recently ended four fiscal quarters) and (ii) reduced mortgage origination volume and decreased warehouse financing availability in the current sub-prime mortgage environment.
And there’s more:
• Citigroup extended a credit line to the end of October but reduced it to $150 million from $1.5 billion.
• Greenwich Capital Financial Products decreased its line to $750 million from $3 billion. The line runs through April 2008.
If Option One sells loans far below cost, it could be required to pay Citigroup and Greenwich a total of $90 million.
To read the filing, CLICK HERE.
like this is surprising?
tic tic tic
Option One one bo bun banana fanna fo fun fee fi fo fun….Option One!
Hmmmmm…. I wonder who Hike Mo is. Was he on Menna Doss’ team?
Lenders most definitely should reduce credit to Option One. They don’t do any loans!
sometimes justice does prevail. Get rid of some of these nasty and obnouxious people. Thank you!!!!
How is it justice. some people are living the america dream due to sub prime….But if you refi and refi and refi agasin to get more money out you are going to get caught up. All want to point the finger to the Lenders , but not to our goverment. Wake up world reality is calling
just a matter of time. they outsourced everyones job to india now they are paying the price.