What to do if Your Lender Goes for Broke

4 04 2007

New Century Financial filed for bankruptcy this week, and the after shock of sub-prime lending is being felt across the country.  So if your lender goes belly up, where do you send your checks?  CNN Money Magazine has good advice.

Like many lenders, New Century originates loans, many of which are later serviced by other banks. It’s estimated that New Century is servicing $30 billion of some $130 billion loans it originated in the past two-and-a-half years, according to Bose George, an equity analyst at Keefe, Bruyette & Woods. As a result, only about a quarter of New Century borrowers may see any difference.

And now for the rest of the story.




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