ECC Capital Corp., citing administrative problems, said today that the deal to sell its mortgage banking business to Bear Stearns has been delayed until the first quarter of 2007.

The Irvine mortgage real estate investment trust had expected the $26 million deal to close by the end of this year. Under the deal, Bear Stearns Residential Mortgage Corp. will take over ECC's mortgage banking operations, which will continue to use the Encore Credit name.

"Certain required administrative matters have taken longer than anticipated to resolve," said Shabi Asghar, ECC co-chief executive.

ECC said it still hoped to make distributions of 80 cents a share to stockholders within 30 days after the sale closes. The company said it intends to declare an initial dividend this month that would be less than 80 cents a share. The initial dividend would be paid in January followed by an additional distribution.

The payments, however, are contingent on a variety of issues including the completion of the Bear Stearns deal, its ability to refinance debt and the timing of the receipt of funds from retained interests in some securitizations.