I recall a posting regarding the imminent doom of NC a few weeks back with the info coming from a “friend” that worked there. I also seem to recall a very negative response from another forum member claiming their this person’s friend had no idea what they were talking about and NC was just doing some downsizing, but was otherwise just fine. Maybe its time for someone to eat some crow?
“NEW YORK (CNNMoney.com) — New Century Financial Corp. filed for Chapter 11 bankruptcy protection in the biggest collapse of a mortgage lender resulting from the U.S. housing downturn, Reuters reported Monday.
The largest independent U.S. subprime mortgage lender filed for protection from creditors after several lenders forced the company to repurchase billions of dollars in bad loans.
The subprime mortgage market is heading for a meltdown with some major lenders defaulting on current financial agreements. CNN’s Gerri Willis reports. (March 10)
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New Century (Charts) until recently was the nation’s No. 2 lender making home loans to customers with weak credit ratings, products known as subprime mortgages.”
WMC won’t go bankrupt because GE is behind them. WMC will just refocus away from subprime but that’s effectively like going out of business. If they were an independent business, they’d be out of business already.
HSBC bought Household Finance for something like $13 billion. They had to write off $11 billion. HSBC won’t go bankrupt but their acquisition of Household is now worthless. That is effectively the same as Household going out of business.
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