Mego Mortgage is the latest specialty lender to take a multimillion- dollar hit because customers are prepaying loans faster than expected.

The Atlanta-based high-loan-to-value lender said after the market's close on Monday that a charge as large as $16 million may be needed and that this would have a "significant impact" on fourth-quarter earnings.

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.