Moody's Investors Service has put $528 million of Delta Financial Corp.'s outstanding securities under review for possible ratings downgrades, saying bad publicity from a spate of lawsuits over alleged lending abuses could jeopardize investors' money.

Delta's lending practices have been under investigation by the New York Attorney General's office, the New York State Banking Department, and the U.S. Department of Justice. They have said that Delta unfairly induced low-income and elderly homeowners to take out high-interest mortgages they could not afford, then foreclosed on the properties when the borrowers could not make payments.

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