Subprime lender Mego Mortgage Corp. said Tuesday it would take a $20.2 million net loss for the six months ended Feb. 2.

The company said it was taking a writedown to cover readjustments of the values of its securities, which are experiencing higher-than-expected prepayment rates. The company is also readjusting its prepayment assumptions going forward because of increased prepayment rates during the three months ended Nov. 30.

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