Subprime Crisis Drives FBR Mortgage Unit Into Ch. 11

Law360 (January 14, 2008, 12:00 AM EST) -- Investment firm Friedman Billings Ramsey Group Inc. announced Friday that its mortgage subsidiary, First NLC Financial Services, will file for Chapter 11 bankruptcy and liquidate its business, and that FBR does not expect to recover the roughly $12 million it has invested in FNLC.

The company said that FNLC's bankruptcy is “a result of the continued deterioration of the nonprime market.”

“FNLC's senior secured lender supports the orderly wind-down of FNLC's business,” FBR said.

Last July, Friedman Billings announced that it intended to sell 80% of...
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