Delta Funding Corporation (abbreviated DFC) is a specialized consumer finance company that originates, securities and sells unsuitable mortgage loans. DFC was founded in 1996 as a Delaware company. DFC is a sub-prime lender that focuses on loans to individuals who generally do not meet the credit, documentation or other underwriting standards set by more traditional mortgage lending sources, including loan entities according to the appropriate loan guidelines from Fannie Mae and Freddie Mac. In 2006, DFC started a $ 4.0 billion loan; in 2005 it was $ 3.8 billion. A large amount of these loans are obtained through telemarketing.
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Bankruptcy
On December 17, 2007, DFC and its subsidiary Delta Funding Corporation, Renaissance Mortgage Acceptance Corporation and Renaissance REIT Investment Corporation filed a voluntary petition for assistance under Chapter 11 of the US Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. On December 20, 2007 DFC announced that it would be removed from NASDAQ on December 28, 2007.
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Employee Relations and Criticism
In 2004 DFC and its retail subsidiary, Fidelity Mortgage, Inc. sued in the United States District Court for the Western District of Pennsylvania. The lawsuit was filed by a former loan officer employed by DFC subsidiary Fidelity Mortgage, Inc., who accused the company of misrepresenting its loan officer as an exception to the federal Labor Standards Act. Plaintiff is represented by Nichols Kaster, PLLP. The case was not resolved when the DFC filed for bankruptcy protection.
References
Source of the article : Wikipedia
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