Saturday, March 10, 2007

New Century Mortgage: Is This The Last Straw?

No, this isn't George Hamilton.

It's Mr. Angelo Mozilo, CEO of New Century Mortgage, one of America's largest subprime home mortgage lenders, having posted almost $60 billion of loans in 2006.

Big trouble.
Famous for providing special mortgage loans to individuals with shitty credit, it's now approaching crunch time for New Century. Time to pay the piper. Unfortunately, more and more of these higher-risk mortage loans are going into default, which means New Century cannot pay it's own creditors back.
The hole in the boat has been patched, according to New Century. They've finally decided to stop writing up any more shitty loans. Also, general lending standards are being tightened up. But it's probably too late to save the company from bankruptcy proceedings.

Twenty mortgage businesses have already been shut down from making further loans, or have gone bankrupt altogether.

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