Another subprime lender bites the dust


	Another subprime lender bites the dust

ericskiff

4-3-2007 5:05 PM

742 views

tags:

housing, housing bubble, finance, subprime, lending

ericskiff says:

Another in what I'm betting will be a long, long list of subprime (and other) lenders who now have to pay the piper for risky lending practices. The fed had to remind lenders recently to actually verify that borrowers could repay their loans.

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New Century Financial Corp., once the largest independent maker of mortgages to high-risk borrowers, sank into bankruptcy proceedings today, swamped by demands that it buy back defaulted loans. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.latimes.com/business/la-fi-newcentury3apr03,0,2522688.story?track=mostviewed-homepage"><DIV>The Irvine company also said it would eliminate 3,200 jobs, or about half of its workforce. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.latimes.com/business/la-fi-newcentury3apr03,0,2522688.story?track=mostviewed-homepage"><DIV>
Its fall epitomizes the collapse of the sub-prime lending business, which made $1.3 trillion in higher-cost mortgages over the past two years to shaky borrowers. In recent months, forced sales and outright shutdowns of lenders have plagued the industry -- woes that threaten to depress the entire housing market. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.latimes.com/business/la-fi-newcentury3apr03,0,2522688.story?track=mostviewed-homepage"><DIV>"They were big, strong, gigantic -- and arrogant too, cocky," said analyst Matthew Howlett at the investment firm Fox-Pitt, Kelton. </DIV></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/4CFD7A87-BAFC-4A85-97BB-F85703BD07E2/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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