Friedman, Billings, Ramsey mortgage origination unit to file bankruptcy

By Caroline Salls

Pittsburgh, Jan. 11 - Friedman, Billings, Ramsey Group, Inc.'s First NLC Financial Services, LLC mortgage origination subsidiary will file for Chapter 11 bankruptcy to liquidate its assets, and Friedman, Billings, Ramsey will not close a previously planned recapitalization and sale of First NLC, according to a news release.

Friedman, Billings, Ramsey said the decision to liquidate First NLC's assets in bankruptcy was prompted by the continued deterioration of the non-prime market

According to the release, First NLC's senior secured lender supports the orderly wind-down of the business.

Friedman, Billings, Ramsey said it has taken steps to limit its ongoing exposure to First NLC.

In connection with the expected Chapter 11 filing, Friedman, Billings, Ramsey said it does not expect to recover its remaining $12 million investment in the subsidiary.

Friedman, Billings, Ramsey provides investment banking, institutional brokerage, asset management and private wealth services through majority ownership of FBR Capital Markets Corp. The company is located in Arlington, Va.

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