Devoted to interest rates, loans, and lending institutions

H&R Block was hit hard by the subprime mortgage crash in its Option One mortgage lending division. After a deal with Cerberus fell through, Option One was shut down in terms of mortgage loan origination. Now, however, WL Ross & Co. has agreed to buy Option One. The Kansas City Star reports on the Option One deal:

“Notwithstanding the problems of the subprime lending industry, we regard mortgage servicing as an attractive business and believe that there are considerable economies of scale attached to it,” said Ross in a statement. “We shall therefore continue to seek acquisitions of prime, Alt-A and subprime servicing.”