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.