Article: Mortgage Lender American Business Financial Loses $26 Million amid Cash Crisis.

Byline: Todd Mason

Nov. 6--American Business Financial Services Inc. lost $26.3 million, or $8.91 a share, in the quarter ended Sept. 30, raising the prospect of a default on the loans it closed last month.

Revenue plunged by 73 percent to $20.2 million as the Philadelphia mortgage lender was hobbled by a cash crisis. It failed to sell securities on Wall Street backed by packages of its mortgage loans.

After a similar failure in its June 30 quarter, American Business Financial reported a loss of $29.9 million, or $10.25 a share.

The company's bankers pulled out in June after American Business Financial disclosed that its foreclosure and ...

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