Accredited Mortgage Loan REIT Trust of San Diego said it would suspend first quarter dividends on its 9.75% Series cumulative preferred shares.
One shareholder told ASR sister publication National Mortgage News that by cutting the dividend Accredited "isn't making any friends in the capital markets." AML REIT is part of Accredited Home Lenders, which is owned by Lone Star Funds, a hedge fund.
The preferred shares are trading in the OTC "pink sheets" market. A spokesman for Lone Star confirmed the dividend suspension but could offer no further information. He said Accredited, once a top ranked subprime lender, is still in business. Accredited's chief operating officer, Karen Shields, did not return a telephone call about the matter.
Recently, Accredited laid off 38 employees at its West Chester Township office in Ohio. The cutbacks were effective March 17. Lone Star bought Accredited in the fall of 2007 for $296 million.
