Lomas Mortgage USA, in a sign that its financial health is continuing to deteriorate, did not make $17 million of interest payments due Oct. 2 on two bond issues. The parent company, Lomas Financial Corp., Dallas, also said it expects to report a loss for its fiscal year.
The parent, in a statement issued late Monday, said it was reviewing its options. It said the first $36.9 million of the $100 million it will receive from First Nationwide Bank for the sale of one-third of the mortgage unit's servicing portfolio covered secured interest rate swaps, transaction expenses, and other payments required for the closing of the sale. First Nationwide also bought Lomas' Ginnie Mae origination capability. That deal is now complete.
Just last week, Lomas Financial notified the Securities and Exchange Commission it would be late filing its 10-K - the annual report required by the SEC - for it fiscal year that ended June 30. The filing also stated that the company expects to report a loss for fiscal 1995.
In a statement to the SEC signed by Gary White, senior vice president at Lomas Financial, the request for a delay stated that the company's financial statements would be significantly affected by the sale of one- third of the mortgage unit's servicing portfolio.
"The transaction has a significant impact on the company's financial position and performance," the filing said.
At the same time, industry talk is that First Nationwide is buying another piece of Lomas' servicing portfolio. A First Nationwide spokeswoman had no comment on a possible deal.
First Nationwide, run by Texas banker Gerald Ford and partially owned by financier Ronald O. Perelman's MacAndrews & Forbes Holdings Inc., made an agreement to buy Lomas' Ginnie Mae servicing rights and origination capability last month. A spokeswoman said First Nationwide is reviewing possible acquisitions.
Lomas Financial suffered losses in the 1980s from a spate of Texas real estate investments gone bad. The company suffered further losses in the refinancing boom of 1992 and 1993. It emerged from bankruptcy in 1992, and has been for sale since early 1994.