Saturday, March 03, 2007

Sub-Prime Lenders Under Pressure

New Century Financial is the target of a federal criminal inquiry into its accounting and trading in its securities, and said its auditors could warn of "substantial doubt" over the home lender's ability to remain in business. Fremont General, another big lender, said it plans to stop making subprime residential loans and is in talks to sell that business.

The news came the same day federal bank regulators announced a crackdown on loose lending standards on subprime home mortgages.

http://online.wsj.com/article/SB117286729439625151.html?mod=djemalert

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