Fremont General Corp. announced on Friday in a filing to the Securities & Exchange Commission that it is exiting the subprime lending business. The Santa Monica-based lender said it will post a loss for the fourth quarter and is in negotiations with the Federal Deposit Insurance Corp. in regard to its subprime lending practices, including the way in which it calculated the value of its loan portfolio, according to the filing. Fremont also said it was in talks with several potential buyers for its subprime business.
The lender earlier this week announced it would delay fourth quarter earnings and miss the deadline to file its annual report. Fremont filed the form 12b-25 to the SEC after the close of markets on Friday to notify of the late filing and provide an explanation.