H & R; Block Inc. expects to sell Irvine-based subprime mortgage lender Option One Mortgage Corp. by the end of March for $1.3 billion, according to the Kansas City-based tax preparer.
But analysts are skeptical about Option One’s value amid a freefall in the subprime mortgage business, according to a recent American Banker report.
H & R; Block said late last month it hasn’t received any formal bids yet but called its price realistic.
Executives said operations at Option One are improving with a tightening of loan requirements last year.
H & R; Block said in November it was looking to sell Option One, which has been a drag on the company’s results amid the subprime sector’s slowdown.
