Fremont Bails Subprime Market

Fremont just announced that they are exiting the subprime lending market after leading the industry for years, the Housing Wire reports. You can read the full release (PDF) on Fremont’s web site.

Troubled subprime lender Fremont General (NYSE:FMT), said late Friday it will exit subprime residential lending, citing a wide range of factors including mounting pressure from loan repurchases and acknowledging â??unsatisfactoryâ?? lending practices in a filing with the SEC. …

The company said its decision to exit was prompted primarily by the receipt of a Proposed Cease and Desist Order from the FDIC on February 27. Among other things, the Order called for Fremont to make a variety of changes to its subprime residential mortgage business.

This is big, folks. It’s tough to keep up while at work, but I’ll have more commentary on all of this later.