Industry News

Accredited warns Q1 numbers won’t be good

Subprime lender looking for capital or merger

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Subprime lender Accredited Home Lenders Holding Co. hasn't filed an annual report for 2006 and will be late filing its first-quarter results for 2007 because its auditor has quit. But investors can expect "a significant loss" for the first quarter due to "fierce pricing competition, ongoing product contraction (and) higher delinquencies and losses," the company said in a Securities and Exchange Commission filing. Accredited reports that its accounting firm, Grant Thornton LLP, resigned March 27 without completing an audit of the company's 2006 financial statement. Accredited said it hired Squar, Milner, Peterson, Miranda & Williamson to audit its books on April 9. In the meantime, the numbers Accredited is releasing about its first-quarter results suggest it's in the same boat as other subprime lenders who have seen delinquencies and defaults rise sharply in areas where home-price appreciation has slowed or reversed. Accredited sold $3.5 billion in loans in the first quarter, const...