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.

Ernestine Warner, a director at the ratings agency, said S&P would monitor the Delta securities to see which ones might be affected.

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.