The largest tax preparer in the U.S said on Tuesday that it will shut down its troubled mortgage lending arm and cut 620 jobs as the units sale to Cerberus Capital Management LP has fallen through.
The moves, which will cost H&R Block about $200 million in charges and write-downs for , come as the business of making home loans for riskier borrowers continues to deteriorate.
The Kansas City, Mo.-based company said in a regulatory filing said the deal was terminated because closing conditions could not be met and the two sides could not agree on new terms. Cerberus CBS.UL declined to comment.
Block now plans to dismantle its mortgage business which contributed to nearly two-fifths of the company's profit in the past.
Shares of H&R Block dipped 19 cents to $19.27.