Another hairy loan from New Century

This clip covers a story of a vulnerable old woman who was sold an inappropriate subprime mortgage. Who was the lender? It was New Century. The company is teetering on the brink of bankruptcy. If New Century made a business out of selling loans to high risk clients like the one in this clip, it is not hard to understand why their default rate shot up.

You have to wonder what the financial market regulators were doing. Were they paying any attention to companies like New Century? Seems not.

2 comments:

Successful Penny Stock Tips said...

During the housing bubble. I can can picture the young real estate agent’ the banker waiting for the buyer to sign on the doted line chuckling when someone suggested that real estate could maybe be not so great an investment. So over confident that you could smell it in the room. Non of these guys ever thought for a moment that their was anything out of the ordinary. non of these guys had any idea as to what was comming down the line.

QUALITY STOCKS UNDER 5 DOLLARS said...

Its not subprime its subcrime.