by Calculated Risk on 3/14/2007 09:50:00 AM

A couple of overlooked subprime stories (hat tip Jeff):

From Reuters: H&R Block delays filing quarterly report

H&R Block Inc. ... said on Tuesday that it expects to delay filing its quarterly results with regulators after turmoil in the subprime mortgage market forced it to write down assets at its Option One Mortgage Corp. unit.

The write-down will affect cash flows, the balance sheet and reported earnings, and the company expects to file the results by March 19.

H&R Block said in a regulatory filing it had to write down $29 million of assets, before taxes, at its Option One unit.

From Reuters: GMAC to get $1 bln from GM, cites subprime pressure

General Motors Corp. will inject $1 billion into GMAC, its former finance arm said on Tuesday, a capital infusion needed to complete the sale of the automaker's majority stake in the face of escalating defaults in the U.S. mortgage market.

GMAC, which reported results on Tuesday, said that even after the equity injection from GM, "continuing pressures in the U.S. mortgage sector" would weigh on its future earnings.

Under terms of its sale to a group led by Cerberus Capital Management, GM had guaranteed a minimum book value of $14.4 billion when the sale closed at the end of November.

However, a recalculation of GMAC's book value revealed a shortfall caused by the mortgage losses that GM is now trying to address with the $1 billion cash injection this quarter.