Option One Gets Funding Boost for Servicer Advances

In a filing with the Securities and Exchange Commission on Monday, tax giant H&R Block said that its troubled Option One Mortgage Corp. had a credit line used to fund servicer advances increased to $800 million from a previous $750 million.

The increase came as Option One added The CIT Group to the lenders on one of its servicing advance facilities.

H&R Block also said in the filing that former CEO Mark A. Ernst has resigned from his position as a member of the company’s Board of Directors. Ernst resigned as CEO on November 20th (see HW coverage), amid mounting losses from Option One and pressure from dissident stockholder groups.

Ernst will receive a $2.55 million lump sum payment under the terms of his resignation, H&R Block said in Monday’s filing.