Accredited Home Lenders(LEND Quote) plummeted 41% as the lender warned of possible insolvency if the mortgage industry continues to deteriorate.
"In connection with the challenges facing the non-prime lending industry, several of our competitors have recently stopped originating loans or sought protection under bankruptcy laws," the San Diego-based mortgage lender said Thursday in its annual report. "Unless the values of our mortgage products cease their decline, and we are able to obtain new sources of liquidity and waivers and modification of the covenants in our credit facilities, we may suffer a similar fate."
Accredited said if any of its own lenders decided to execute a so-called margin call - requiring the company to put up additional cash or collateral in exchange for the funding -- the company could be in deep trouble. ...
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