C-BASS-Owned Fieldstone Stops Funding

Fieldstone Mortgage, Columbia, Md., has ceased funding residential loans and taking new applications in the wake of margin calls at its parent company, C-BASS, a specialty servicer based in New York.An e-mail message sent to employees says that "no loans will be closed from August 1 forward unless there was an unconditional commitment to fund issued by July 31." A spokeswoman for C-BASS confirmed that Fieldstone has suspended originations but noted that certain loans will be funded "on a limited basis." Fieldstone was recently purchased by C-BASS, which is controlled by MGIC Investment Corp. and Radian. Earlier in the week, C-BASS -- which controls the nation's 10th-largest subprime servicer, Litton Mortgage -- revealed that it has been the subject of margin calls. In the wake of the margin calls, MGIC and Radian wrote down their interest in C-BASS by $1 billion. C-BASS is for sale. Fieldstone can be found online at http://www.fieldstonemortgage.com.