Cityscape Financial Corp. sold off a large portion of its loan residuals last week to Wilshire Financial Group.

Wilshire, a distressed-asset manager based in Portland, Ore., bought $450 million in U.S. residuals and servicing for $27.3 million, said chief executive Andy Wiederhorn. The company also bought $20 million of nonperforming loans from Cityscape.

Mr. Wiederhorn denied industry rumors that Wilshire is considering buying Cityscape's U.K. business. Cityscape has been under fire from British regulators over its late-payment fee practices.

Ocwen Financial Corp. of West Palm Beach, Fla., was originally retained by Cityscape to service its problem loans.

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