Accredited Home trades $1 bln loans
NEW YORK, Aug 21 (Reuters) - Accredited Home Lenders Holding Co LEND.O, a struggling subprime mortgage lender, on Tuesday said it has agreed to trade $1 billion of loans under a 90-day purchase agreement with an unnamed investor.
San Diego-based Accredited expects a final sale of the loans to take place by October, and said it has the ability but not the obligation to buy the loans back through mid-November. If said if it does not buy the loans back, the investor may keep the loans, with "limited recourse" to Accredited.
"If the market improves to a rational level, our intention is to repurchase these quality loans by mid-November and sell or securitize them," Chief Executive James Konrath said.
San Diego-based Accredited said it expects the transaction "will neither produce nor use any significant liquidity at
(the) time of funding."
(Reporting by Jonathan Stempel)
((Editing by Dave Zimmerman; Reuters Messaging: jon.stempel.reuters.com@reuters.net, 646 223 6317)) Keywords: ACCREDITEDHOME LOANS/
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