Industry News

Fremont General continues efforts to sell off subprime biz

Lawsuit alleges deceptive business practices

Fremont General Corp. (NYSE: FMT), a company that operates primarily through banking company Fremont Investment & Loan, on Thursday reported $18.3 million in income for the third quarter as it continued to sell off residential real estate loans and completed the sale of its commercial lending business. The company has sold off $8.75 billion of residential real estate loans at a loss of $881.1 million, net of valuation reserves, during the first nine months of the year ended Sept. 30, the company reported. Also, Fremont Investment & Loan sold its entire $6.27 billion commercial real estate loan portfolio to iStar, receiving $1.89 billion in cash and $4.21 billion participation interest for the sold portfolio -- that deal was completed July 2. The company reported $32.2 million in income from continuing operations during the third quarter as a result of the sale to iStar. Fremont Investment and several other companies and individuals are named in a lawsuit filed this week in C...