securities issued by Delta Funding Corp., following the firm's $12 million fair-lending settlement with New York State authorities, but S&P would not change its ratings on the subprime lender.

S&P placed Delta's securities ratings under its watch because the firm had been accused of abusive lending practices. The settlement requires Delta to establish a remediation fund, to which it will commit a total of $7.25 million in the form of monthly payment reductions on mortgages identified by the New York State Banking Department.

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