New Century, Biggest Subprime Casualty, Goes Bankrupt
New Century, Biggest Subprime Casualty, Goes Bankrupt
Excerpt:
April 2 (Bloomberg) -- New Century Financial Corp., overwhelmed by rising defaults from borrowers with poor credit records, became the largest subprime mortgage lender ever to fail as it filed for bankruptcy today.
New Century plans to sell most of its assets within 45 days, said the Chapter 11 filing in federal court in Wilmington, Delaware. About 3,200 people, more than half the workforce at the Irvine, California-based company, will be fired. New Century said it already agreed to sell its mortgage billing and collections unit to Carrington Capital Management LLC for $139 million.
Notice the publisher of the red book
ReplyDeleteIt will be interesting this next quarter to see how the purchase business reacts to having such reduced options for purchasing with no money down. Will Realtor and borrowers be prepared? I think that this will go a long way towards indicating where we will be a year from now.
ReplyDelete