Mark Ernst, chief executive officer of
His comments came after it become apparent that hedge fund Cerberus Capital Management is looking to reduce the $1 billion it pledged to acquire a mortgage division of H&R Block’s units, or possibly even squelch the deal, due to “material adverse market conditions.”
The division, Option One Mortgage Operations, has cut its lending business by 80% since the subprime crisis emerged. Previously, it lent $1 billion in mortgages a month. Now, that’s $200 million. Ernst said that if the deal falls through, H&R Block might fold the division.