Goldman Top Unsecured Creditor to First NLC

Goldman Sachs & Co. has filed a $5 million unsecured claim in bankruptcy court against the now-defunct First NLC Financial Services, Deerfield Beach, Fla., a subprime lender owned by Friedman Billings Ramsey. According to First NLC's filing in West Palm Beach, Fla., Goldman is the largest unsecured creditor of the company. Others that are owed money include HSBC Mortgage Services ($3 million), Deutsche Bank ($2 million), and U.S. Bank Corp. ($1 million). Most of the claims are tied to "representations and warranties" on loan buybacks. The filing lists 20 unsecured creditors that are owed roughly $16 million. Some include former employees trying to collect on severance benefits. According to the Mortgage Industry Directory, a SourceMedia publication, First NLC was once a top-30-ranked subprime funder.