California-based subprime mortgage lender New Century has filed for bankruptcy protection, and announced plans to immediately terminate 3,200 employees. If the bankruptcy court gives its approval, New Century will sell its loan servicing business to Carrington Capital Management.
More than two dozen subprime lenders across the country have shut down in the past several months, and New Century will likely not be the last.
Tags: bankruptcy, loan servicing, Mortgage Foreclosure, mortgage lending, subprime lenders, subprime mortgage loans
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