Resource America's LEAF Financial Stalled?

| About: Resource America, (REXI)

We have been writing about the parent Resource America (NASDAQ:REXI) and its relationship with LEAF Financial, the recent securitizations and lines of credit as well as the closing of LEAF Specialty Finance in Columbia, South Carolina, including 2009 SEC LEAF filings showed 377 employees; February down to 271; reportedly down to 113 now (2009 SEC LEAF filings showed 377 employees; February down to 271; reportedly down to 113 now - including Leaf Dealer Solutions, formally Dolphin Capital. “There are about 80 people at the Missouri location.")

A reader wrote in that "Leaf had to over collateralize the deal by 7.5% in cash and assets... attached is something I thought was interesting. This is the info on how Leaf put together their last $175M securitization." (1)

Now it appears from the recent filings that the last source being used to fund deals was paid off. LEAF paid off Wells Fargo (NYSE:WFC) ($75M). This line wasn't due till 2012. (2)

In addition, a SEC 8K filing shows LEAF paid off UniCredit for $100M (3). With the Wells Fargo line gone, it appears LEAF has no lending line to new fund deals for Leaf 4. Looks like they're securitizing everything. Once LEAF sells the accounts into securitization pools, LEAF and Resource America cannot get the management fees charged before. And if LEAF is not writing new deals in the same pace as in the past, there is little revenue to support operations as in the past, reflecting the small staff operation in Philadelphia and gives further indication Resource America is winding down LEAF. CEO Crit DeMint and others may soon be looking for a new job.

Emails from Leasing News were not returned for a comment or statement.

(1) LEAF Rating Report:

(2) Wells Fargo line:

(3) UniCredit pay off:

Disclosure: No position

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