FirstPlus Financial Group Inc. is once again rejiggering its accounting, saying it went too far in adopting more conservative practices last year. The company said it would assume a prepayment rate of 21% on the loans it securitizes. That's more conservative than the 12% it used before last fall, but more lenient than the 33% it adopted then.

When consumers prepay their loans, profits that lenders had assumed they would earn from selling the loans are wiped out.

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.