|
Mortgage Firm Receives Restraints from other States |
|
|
|
|
Tuesday, 20 March 2007 |
On Monday, Reports said that New Century Financial Corp., the beleaguered home lender to people with weak credit said that it has received the so called cease and desist that stops the said company from accepting new applications for mortgage loans from more states now.
In a filing with the Securities and Exchange Commission that Connecticut, Maryland, Rhode Island and Tennessee issued the orders Wednesday and Thursday, alleging that New Century units had violated state laws, including failure to fund mortgage loans after closing, The Irvine, California company said.
The agreement restrains the company from taking new mortgage-loan applications. On Wednesday New Century said that the company's Home123 Corp. unit entered into a consent agreement with the Pennsylvania Banking Department's supervision and enforcement bureau. It is known that the second-largest U.S. which is New Century, subprime home mortgage lender last year based on loan volume, has already stopped making new loans due to a lack of funds.
In addition, the SEC is conducting a preliminary probe of the events leading up to its announcement last month to restate its financial results for the first three quarters of last year. The lender, now teetering on the brink of bankruptcy, is the subject of a criminal inquiry into its accounting and trading in its stock.
By: Jron Magcale |
News 