Fremont General Corp. intends to exit its sub-prime residential real estate lending operations, the company said Friday.
The move was prompted by a Proposed Cease and Desist Order Fremont General received from the Federal Deposit Insurance Corp. on Feb. 27 that calls for the company to make a variety of changes to restrict the level of lending in its sub-prime residential mortgage business, among other things.
The use of the phrase "cease and desist" sounds like some type of illegal event was happening. In reality, this is the FDIC saying, "you need to stop doing business in this manner."
