Just days after their Lone Star buyout, Accredited Home Lenders is back to originating loans.
Per the news release sent out this morning, “With the support of its new parent, Accredited believes that it can resume lending operations in a manner that will be beneficial over the long term, and Accredited plans on resuming lending operations beginning October 15.”
It‘s unclear what aspects of their loan operations will resume, though I’ve heard that the mortgage lender will be offering “subprime loans” again via interest-only loans, stated self-employed documentation, and non-owner occupied properties.
Last Friday, Dallas-based Lone Star Funds completed its $296 million acquisition of Accredited Home Lenders, valuing shares at $11.75, despite previously agreeing to a buyout at $15 a share on June 4th.
In August, Lone Star tried to revise the terms of the buyout, lowering their bid to $8.50 a share, leading to a lawsuit that was later dropped.
Accredited also said it expected to repay $230 million in outstanding loan debt to Farallon Capital Management LLC, a San Francisco, California based hedge fund.
San Diego-based Accredited Home Lenders, founded in 1990, shut down 65 branches and cut its workforce from 2,600 to 1,000, while closing five of its ten brokered loan offices in late August.
Let’s hope they get it right this time around.