Ohio State Attorney General Marc Dann got a restraining order against New Century Financial to stop the failing company from soliciting consumers for broker services or mortgage loans, accepting loan applications and fees to process loans, pursuing foreclosures, and evicting consumers. New Century, a leading subprime lender, was recently delisted from the New York Stock Exchange after its share price fell to almost nothing. Many financial experts expect New Century to fall into bankruptcy.
A spokesman for the Attorney General said that “despite their comments that they were no longer writing loans in Ohio, they were still taking applications last week. We are stopping them from processing those loans. We don't want them to accelerate foreclosures in an attempt to accelerate cash flow.”
This entry was posted on Thursday, March 15th, 2007 at 5:03 pm and is filed under Home Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
All the subprime lenders were doing this and 101 other illegal horrible things. I would wager that 50% of the foreclosures are due to lender fraud OR servicing company fraud. Any specific websites to look at would be appreciated. I hope Ohio goes after them all and jails them for decades, after they refund their customers their money and give them their homes back.