Morgan Stanley has pulled a $265 million line of credit from ailing subprime giant New Century Financial Corp., a decision that likely will force the company to file for bankruptcy protection.The LOC was made just last week. According to documents filed with the Securities and Exchange Commission Monday morning, the Irvine-based NCFC also revealed that several of its financiers -- Bank of America, Citigroup, Credit Suisse, Deutsche Bank -- had declared the non-depository in default on warehouse lines or other financial obligations. Documents show that NCFC owes Credit Suisse almost $1 billion due to a repurchase obligation. Meanwhile, some Wall Street firms are terminating NCFC's servicing rights, which could reduce cashflow at the company's servicing unit. According to the just-released Quarterly Data Report, NCFC has $40 billion in servicing rights on its books, ranking 14th nationwide. Among subprime funders it ranks second. Its stock had been halted in trading as MortgageWirewent to press. A spokeswoman did not return telephone calls.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28