Thought this was interesting
Date: Mon, 03/19/2007 - 14:01
Thought I would post this in case there are people here that are looking into a mortgage.
Quote:
Quote:
LOS ANGELES (AP) -- New Century Financial, the beleaguered lender that caters to people with poor credit scores, said Monday it had received cease-and-desist orders from four more states to stop it from accepting new mortgage applications. The Irvine-based company said in a filing with the Securities and Exchange Commission that Connecticut, Maryland, Rhode Island and Tennessee issued the orders Wednesday and Thursday, alleging that New Century Corp. units had violated state laws, including failure to fund mortgage loans after closing. Massachusetts, New Hampshire, New Jersey and New York have already issued similar orders, according to the company. In addition, its Home123 Corp. unit entered into a consent agreement with the Pennsylvania Banking Department to keep it from taking new mortgage applications in that state, New Century said. New Century, the second-largest U.S. sub-prime home mortgage lender last year based on loan volume, has already stopped making new loans due to a lack of funds. The lender, now on the brink of bankruptcy, is the subject of SEC and Justice Department investigations of its accounting and the trading of its stock. The SEC is conducting a preliminary inquiry into the circumstances that led to the company's disclosure last month that it would restate its financial results for the first three quarters of last year. The company said it is cooperating with investigators. In its filing Monday, New Century also said that one of its creditors, DB Structured Products Inc., terminated one of its loan repurchasing agreements and was demanding immediate payment of about $700 million and another $200 million from a previous repurchase obligation. To date, creditors who purchased home loans sold by New Century have submitted requests that the company buy back some $500 million in loans due to early defaults by borrowers, the company said. New Century has said it was subject to indebtedness under its credit financing arrangements of about $8.2 billion. Meanwhile, an Ohio state court has issued a temporary restraining order against the company meant to block it from soliciting new mortgage loans or initiating foreclosure actions in the state, according to Monday's filing. |
Wow. They're in trouble with quite a few states. Definitely a
Wow. They're in trouble with quite a few states. Definitely a place to stay away from!