An increase in defaults in subprime mortgages originated by small lenders over the last couple of years has prompted big banks and investors that purchased these mortgages to order the lenders to buy them back.
Many of these subprime originators are now facing bankruptcy because they don’t have the money to comply with these repurchase demands.
New Century Financial is among the lenders on the brink of bankruptcy due to repurchase orders from Morgan Stanley, Citigroup, Goldman Sachs Group, Credit Suisse Group, IXIS Real Estate Capital Inc. and Bank of America Corp.
Frank Ramos, REALTOR, e-PRO
Real Estate Consultant
http://www.northvirginiahomes.com/
Jobin Realty
Manassas, VA 20110