Delta Funding Corporation (abbreviated to DFC) was a specialty consumer finance company that originated, securitized and sold non-conforming mortgage loans.
[1] DFC was a sub-prime lender focused on lending to individuals who generally do not satisfy the credit, documentation or other underwriting standards set by more traditional sources of mortgage credit, including those entities that make loans in compliance with the conforming lending guidelines of Fannie Mae and Freddie Mac.
[1] On December 17, 2007, DFC and its operating subsidiaries Delta Funding Corporation, Renaissance Mortgage Acceptance Corporation and Renaissance REIT Investment Corporation, filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware.
[1] The lawsuit was filed by former loan officers employed by DFC's subsidiary, Fidelity Mortgage, Inc., who accused the company of misclassifying its loan officers as exempt from the federal Fair Labor Standards Act.
[4] The case was not resolved when DFC filed for bankruptcy protection.