Cerberus Drops Option One Deal

Cerberus Capital Management terminated its plan to purchase H&R Block's mortgage subsidiary Option One, which recently stopped accepting mortgage applications. H&R Block said it will lay off approximately 620 employees, close three offices and take a $75 million restructuring charge in shutting down lending at its mortgage originator. Option One said it will honor $30 million worth of existing commitments, most of which are conforming loans, and sell the rest to investors.