WOODBURY, N.Y. - The subprime mortgage and home equity lender Delta Financial Corp. had a net loss of $11.2 million in the third quarter.
In results announced Monday, the company, which has come under fire from consumer activists and state regulators for its lending practices, cited costs associated with corporate restructuring and debt modification. Delta's nine-month net loss was almost $13 million, versus net income of $1.8 million in the first nine months last year.
In the third quarter Delta paid the remaining $6 million of a $12 million fine imposed in September 1999 by the New York State Banking Department and the New York office of the Attorney General. The attorney general charged that in a three-year period Delta made more than 1,000 illegal high-interest home equity loans to low-income residents in the New York boroughs of Brooklyn and Queens.