NetBank Deals with a Pool of Tainted Loans, Predicts Tough Times Ahead as Market Slows
November 18, 2005
It has been a tense week for NetBank after the lender delayed reporting third quarter earnings because of problems it uncovered with a group of conforming loans that it fears were misrepresented during underwriting. CEO Doug Freeman declined to talk about the problem loans too much, citing the preparation of a possible legal case. The problem pool of about $13 million forced NetBank to set aside $3.5 million in reserves…