CapitalSource Inc., the lender that is buying the banking business of the bankrupt Fremont General Corp., said it has sold residential mortgage-backed assets at a loss of $36.1 million this quarter.

The Chevy Chase, Md., lender said in a regulatory filing Monday that it has sold $1.5 billion of the assets since March 31.

"We believe that deposit funding will lower our cost of funds and reduce our reliance on the more volatile capital markets," CapitalSource said in the filing.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.