Hindenburg Research takes short position in Axos Financial

(Reuters) – Short seller Hindenburg Research said on Tuesday it had taken a short position in lender Axos Financial (NYSE:), sending shares of the bank down 18% in premarket trading.

Hindenburg alleged that the bank had lax underwriting standards and a loan book filled with multiple glaring problems.

The bank is exposed to the riskiest asset classes and unlike other peers who have backed away from the deteriorating commercial real estate market, Axos has increased its total exposure to the sector, Hindenburg said in its report.

Axos Financial did not immediately respond to a Reuters request for comment.

Reuters could not independently verify the claims in the short seller report.