A more conservative underwriting strategy at Amresco Inc.'s home equity unit got a positive review this week from Moody's Investors Service.

Under a joint venture announced in late July between Amresco and Lehman ALI Inc., a new entity, Finance America LLC, would originate, buy, sell, and securitize subprime residential and home equity loans. All of Amresco Residential Mortgage Corp.'s origination activity is expected to go through Finance America by the first quarter. Brian L. Libman, a 13-year veteran at Lehman Brothers and former managing director, was named chairman and chief executive of the newly formed company.

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