Option One Ups Financing

The struggling subprime mortgage lending arm of tax prep service H&R Block can now tap up to $750 million.
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Option One subprime lending unit upped to $750 million the financing available to fund servicing advances through Greenwich Capital Partners, according to a regulatory filing Friday.

Greenwich previously had financed up to $400 million, according to the Form 8-K filing with the

Securities and Exchange Commission

. The filing also said Option One and Greenwich terminated a $750 million warehouse facility to finance loan originations.

H&R Block has cut hundreds of jobs at Option One and at its shuttered H&R Block Mortgage retail lending franchise, as home prices fall and defaults rise. The company originally agreed to sell Option One to Cerberus Capital Management in the spring. But H&R Block said in August that it was negotiating revised terms for the sale, including an agreement to "wind down" Option One's mortgage origination operations, while Cerberus would only purchase the mortgage-servicing unit.

At the time, Block was also trying to get Cerberus to agree to waive certain conditions of the deal that set minimum loan fundings and warehouse credit lines at closing.

H&R Block earlier this week announced

changes to its leadership structure. Mark Ernst resigned as chairman, president and CEO just two months after a group of dissidents led by former SEC Commissioner-turned activist investor Richard Breeden gained seats on the company's board. Breeden is taking over for Ernst as chairman.