In a stark example of the deteriorating conditions in the mortgage industry, Prism Financial on Wednesday said it expects to report a fourth-quarter loss of 30 to 35 cents per share - or $4.4 million to $5.1 million - instead of the 24-cent profit forecast by Wall Street analysts.

The announcement came a month after the Chicago lender's chairman and chief executive, Bruce Abrams, committed suicide. Prism's stock price fell as much as 20% and ended the day at $4.50, down 12.73%. It peaked last summer at $29.50.

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