| Will people stop spending if their homes are worth less?
Subprime lenders, who market to homebuyers with low credit ratings, have been in distress nationwide and in Texas. Some have gone out of business or scaled back operations. "We're going to see about a 10 percent correction in our business over the next two months," said Kevin Miller, chief executive of TexasLending.com, a mortgage banker in Dallas that does about 25 percent of its business in subprime loans. Subprime loans account for about 13 percent of residential mortgages in Texas, and nearly 16 percent of those are past due. The percentage of such loans in foreclosure in Texas rose to 4.3 percent at the end of December, compared with 4.1 percent at the end of September. The situation in Texas is apt to get worse before it gets better, analysts said.
The Mortgage Graveyard - Free Journal Chronicles Failed ...
DALLAS, April 4 /PRNewswire/ -- Mortgage lenders that have failed, been acquired or are currently struggling are now chronicled at The Mortgage Graveyard, a newly-launched free journal from http://www.mortgagedaily.com/. Located online at http://www.mortgagegraveyard.com/, the new journal is supported by nearly a decade of mortgage industry news archives written by a variety of reporters for MortgageDaily.com, the dominant source of online news for the mortgage industry. "We've seen the secondary market for subprime mortgages disintegrate over the past six months -- leading to an unprecedented number of company failures," said Sam Garcia, creator of The Mortgage Graveyard. "Information about the companies -- and the lessons to be learned from their failures -- is now easily accessible for analysis by future mortgage executives, analysts and educators.
5 States Tell Home Lender To Halt Business
Connecticut and four other states have issued cease-and-desist orders against troubled New Century Financial Corp., alleging that some subsidiaries of the troubled sub-prime mortgage lender have violated state laws.
Regulators from New York, New Hampshire, Massachusetts and New Jersey sent notices to the Irvine, Calif.-based company on Tuesday, according to its filing Wednesday with the Securities and Exchange Commission. Connecticut regulators said they also issued a cease-and-desist order to the company on Wednesday.
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