Delta Financial Corp may soon file bankruptcy

Subprime mortgage lender Delta Financial Corp said on Thursday it plans to file soon for bankruptcy protection, after losses mounted and an agreement to obtain new financing fell apart. The Woodbury, New York, company also said it will stop taking mortgage applications, and it does not believe it can continue as a going concern. Delta would join more than a dozen other U.S. mortgage lenders to go bankrupt this year amid the U.S. housing downturn. Among these is another Long Island-based lender, American Home Mortgage Investment Corp.