Despite turmoil in the subprime mortgage sector, there appears to still be a market for the loans themselves. Fremont General Corporation announced this morning (April 16) that it had reached an agreement to sell approximately $2.9 billion of its subprime residential real estate loans, the majority of such loans that the company has not already sold.
The prospective buyer was not named. Fremont also announced that it was negotiating with the same institution had agreed to sell most of its residential real estate business and assets. Fremont cautioned that the agreements might not necessarily lead to a sale.
Fremont, based in Santa Monica, Calif., was the nation's fourth largest maker of subprime mortgage loans. It said it would take a loss of more than $100 million on the sale but that it remained liquid with approximately $1.5 billion in cash and short-term investments.