Saturday, March 3, 2007
We have been reading a lot recently about problems in the subprime lending industry as the housing market went south and its impact on the stock market. Now New Century Financial Corp., the biggest mortgage company that specializes in subprime lending, announces big problems. Both the U.S. Attorney and the SEC are looking into financial irregularities and insider stock sales. Yesterday the company said that it would not be filing its annual report on time, after a Feb. 7 announcement that it would restate its earnings for the last three quarters. See NYTimes, Authorities Investigate Big Lender and WSJ, Subprime Troubles Grow.