Delta Funding Corporation (abbreviated to DFC) was a specialty consumer finance company that originated, securitized and sold non-conforming mortgage loans.

History

DFC was incorporated in 1996 as a ''Delaware corporation''. DFC was a sub-prime lender focused on lending to individuals who generally do not satisfy the credit, documentation or other underwriting standards set by more traditional sources of mortgage credit, including those entities that make loans in compliance with the conforming lending guidelines of

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New ...

and Freddie Mac. In 2006, DFC originated $4.0 billion of loans; in 2005 it originated $3.8 billion. A substantial amount of these loans were obtained through telemarketing.

Bankruptcy

On December 17, 2007, DFC and its operating subsidiaries Delta Funding Corporation, Renaissance Mortgage Acceptance Corporation and Renaissance REIT Investment Corporation, filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. On December 20, 2007 DFC announced that it would be delisted from NASDAQ by December 28, 2007.https://www.sec.gov/Archives/edgar/data/1021848/000089109207005535/e29637ex99_1.txt

Employee Relations and Criticism

In 2004 DFC and its retail subsidiary, Fidelity Mortgage, Inc. were sued in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

District Court for the Western District of Pennsylvania. The lawsuit was filed by former loan officers employed by DFC's subsidiary, Fidelity Mortgage, Inc., who accused the company of misclassifying its loan officers as exempt from the federal Fair Labor Standards Act. The Plaintiffs were represented by Nichols Kaster, PLLP.http://www.overtimecases.com/Cases/fidelity.aspx?CaseRef=15 The case was not resolved when DFC filed for bankruptcy protection.

References

{{reflist Financial services companies established in 1996 Financial services companies of the United States Companies based in New York (state) 1996 establishments in New York (state) 1996 establishments in the United States Companies established in 1996