Industry News

Secondary markets continue to weigh on mortgage lenders

Aegis files for bankruptcy; Accredited sues former suitor

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Early payment defaults and margin calls by creditors have forced Aegis Mortgage Corp. to file for Chapter 11 bankruptcy protection, a week after laying off more than half its work force. Aegis said in a bankruptcy court filing Monday that it owed more than $600 million to creditors, including an affiliate of Cerberus Capital Management that holds an 80.9 percent equity stake in the firm, Reuters reported. Houston-based Aegis laid off 782 of 1,305 employees on Aug. 7 but is continuing to service loans, Reuters said. In other news, subprime lender Accredited Home Lenders said it filed a lawsuit against Lone Star Funds after Lone Star allegedly backed out of a $400 million deal to acquire the troubled San Diego-based lender. Accredited originated $1.7 billion in mortgage loans during the second quarter, down 59 percent from the same time last year, the lender said in a Securities and Exchange Commission filing, and expects losses for the quarter will total $40 million to ...