Loan Star acquire Accredit Home...

Accredit Home -pure player sepcializing in subprime mortgage running out of cash during the subprime market meltdown. face a cash crunch as creditors ask for loss recovery. -a good alternative to resolve financing issue and increase return for equity investors Question -why can not Loan Star wait until the the company condition get further worse. -the company had not release annual report and will delay its 1Q report. The company said it would suffer signicant loss because its loan origination volume was much lower than 1Q last year. -it means they see the sings of recovery in subprime mortage market. -CFC, 10y bond, tightened 30 bps since to 130 bps since March -key to survival is the source of their funding, -in April, Cerberus Capital Mg agreed to purchase H&R Block Inc's subprime-lending unit -in March, Chicago based hedge fund Citadel Invst Group LLC agreed to buy ResMae Mortgage Corp's mortgage lending unit for $22.4 million and loan 98.5 cents on the dollar for its loan portfolio - Accredited operates nationwide and ranked 14th last year among U.S. subprime lenders with $15.8 billion in loans and a 2.6percent market share, according to Inside Mortgage Finance, an industry publication.