Subprime Feature Story It seems as though the sub prime market in California seems to inspire feature story after feature story about someone who goes from rags to riches and then rags again. Bloomberg has a feature about someone who went from a manager at a warehouse for Target, became a salesperson for Costa Mesa based Secured Funding Corp. I am not sure how many more stories like these I can take. Quite simply the mortgage brokers in California were able to quickly package loans and sell them off to firms on Wall street or large banks

Under U.S. law, investors who buy mortgages or securities backed by them are typically not susceptible to lawsuits alleging fraud on the part of brokers.

I would encourage you to skip the obvious lead-in of the story and read some of the meat of the matter. The body of the article tells yet another sordid tale of the high pressure sub prime sales techniques. It seems nearly inevitable that some sort of new regulations regarding sales tactics, disclosures and appraisals will happen. With the new Democratic Congress these are sure to be more stringent than the previous Republican Congress.

Labels: securedfundingcorp, Subprime, subprimeloans, subprimemortgagecalifornia

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New Century Financial to shutdown home lending unit New Century Financial is shutting down it's home lending unit (which it was shopping around for sale. Surprisingly no one seemed to think that jumping into the sub prime market was a good idea right now). The firings will take place tomorrow. This is on top of the 3,200 already let go. This means that New Century Financial will let go 70% of it's work force.


Related Article at Bloomberg
New Century Shuts Lending Unit as No Buyers Emerge (Update2)

Labels: Newcentury., NewCenturyFinancialCorp, Subprime, subprimeloans, subprimemortgagelending

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