In Brief: N.Y. Subprime Buying 2 Branch Operations

Delta Funding Corp. is joining the acquisition frenzy of other subprime lenders by buying two regional retail branch operations.

Delta announced Tuesday that it had acquired Fidelity Mortgage Inc., Cincinnati, and Fidelity Mortgage Associates Inc., West Palm Beach, Fla. The purchase prices were not disclosed.

Fidelity Mortgage makes loans to borrowers with blemished credit through three branch offices in Ohio and one in Indiana. Fidelity Mortgage Associates has one retail branch office in West Palm Beach. The two operations together originate about $20 million per month in mortgage loans, Delta reported.

Delta was drawn to the two companies because of their corporate culture, explained Hugh Miller, chief executive at Delta.

"The principals had in excess of ten years' experience working for finance companies," he said. Both companies will operate as wholly owned subsidiaries of Delta Finance and retain their existing management. "We want to know that people are in this business for the long haul," Mr. Miller said.

Executives at both companies said that being purchased by Delta would provide access to additional capital that could be applied to opening additional branches.

Delta is still hungry to acquire and is eyeing more than a dozen deals, Mr. Miller said. Particularly attractive to the northeastern-centered company are retail branches in the West, he said.