New Century Reels Amid Funding Drought

Law360, New York (March 12, 2007, 12:00 AM EDT) -- Funding for subprime mortgage lender New Century Financial Corp. is quickly drying up, according to the company, which told investors on Monday that its lenders have either cut off funding or are preparing to do so.

The lack of funding is yet another sign that embattled New Century is on the verge of bankruptcy. It stopped issuing new loans last week on news of a criminal investigation, regulatory inquiries and a slew of civil lawsuits.

The country’s second-largest subprime lender also noted in a filing with...
To view the full article, register now.