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IRVINE, CA-First Alliance Mortgage Co. here is in a dispute with Fidelity Federal Bank FSB, Los Angeles, about the parties' real estate secured credit card program.
The main point of contention is if FAMCO will have to repurchase the outstanding accounts and receivables generated by the program.
According to First Alliance president Francisco Nebot, on the advice of outside counsel, FAMCO does not have an obligation to purchase the outstanding accounts and receivables.As of Jan. 31, 2000, total receivables outstanding were $17.3 million.
However, Fidelity Federal, which is a subsidiary...