THE BUZZ / Break Came Early In Taxing Schedules
Newsday (Melville, NY) - April 17, 2000
Author: Jack Otter
TODAY IS TAX DAY, so you’d think accountants like Kathy Adams and Ed Slott would be going on vacation tomorrow. Nope. They both have already gone and come back.
Adams, managing partner of Smithtown-based Adams & Jaskot, said she went on a Caribbean cruise in the middle of tax season.
“That way I work a lot harder because I know I’m giving myself a break,” she said. “Then I come back refreshed and full of energy and sprint to the end. My clients get the best of me.”
Slott, of Rockville Centre, took his vacation in February. “I have kids, so by law you have to go to Disney World,” he said.
Hillary Rodham Clinton ‘s former chief of staff, Margaret Williams, has joined Woodbury-based Delta Financial Corp.’s board of directors.
Williams, who also previously was an assistant to President Bill Clinton , is a communications consultant for clients such as the Children’s Defense Fund.
Delta, the parent of Delta Funding Corp., is a mortgage banker that was embroiled in accusations of predatory lending last year. In the announcement last week of Williams’ appointment, chief executive Hugh Miller said Williams will help the company be a “leader” in establishing fair lending practices.
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TOP 100 / COMPANY PROFILES / The Top 100 on LI (41-50)
Newsday (Melville, NY) - June 5, 2000
EXCERPT
Delta Financial Corp.
1000 Woodbury Rd.,Woodbury, 11797
516-364-8500
Revenue: $148.3 million
Profit: $800,000
Stock: DFC (NYSE)
Industry: Home equity and subprime mortgage loans
CEO: Hugh Miller
Employees: 1,049; local, 585
Delta Financial , the parent of Delta Funding Corp., has had a rough year. The subprime lender, which works with borrowers with less than perfect credit, has come under the heat of predatory lending accusations.
About a year ago, the state attorney general first made Delta’s name widely known to the region and the industry by announcing a $6 million settlement over predatory lending charges - charges Delta continued to deny throughout the year.
But as the case grew and the New York State Banking Department became involved, the settlement expanded to a $12 million payout that would eventually go to homeowners, particularly in New York City, who had allegedly received bad loans from Delta. Most recently, the U.S. Justice Department also settled claims with Delta.
Delta was accused of charging excessive fees and rates for subprime loans. Its brokers were accused of using malicious and inappropriate tactics to get borrowers to sign loan papers. And the mortgage banker was accused of doing refinancings at higher interest rates that put borrowers further into debt. Delta denied those charges, noting that its loans go to borrowers who wouldn’t be able to get a loan otherwise.
Since the charges were levied and settlements made, Delta has developed a set of “best practices” and is hoping to make itself a model for the subprime industry. Meanwhile, the banking department is coming up with tougher subprime lending guidelines that will prevent predatory lenders from coming into the market.
Delta’s profits are down from last year, and loan originations fell 30 percent from the end of 1998 to the end of 1999.
Most recently, Delta brought Hillary Rodham Clinton’s former chief of staff, Margaret Williams , onto its board of directors to help Delta be a leader in fair lending. And chief executive Hugh Miller is optimistic. “We’re looking forward to being one of the survivors in the industry - one of the thrivers, actually,” he said. “We’re buckling down, waiting for the storm to pass.”