The Irvine-based mortgage company specializing in subprime loans has stopped accepting loan applications, which is another sign that the end might be near. The company said in a regulatory filing that it's received $265 million in new financing from an unidentified lender (the WSJ said it's Morgan Stanley), but that won't be enough to keep going. Meantime, there were lots of rumbles today about New Century having to file for bankruptcy protection. It's looking like a liquidity crisis, and those are awfully hard to stem. I mean, how many lenders would be willing to get into this mess unless they were guaranteed a nice payback at the other end? By the way, a reader points out that subprime loans are sometimes used by folks with excellent credit histories who simply don't have enough income to take out a traditional loan. Many of the news stories have suggested that subprime loans as just aimed at homebuyers with lousy credit.
More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAXSocal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Siri versus Hawaiian pidgin (video)Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
New at LA Observed
On the Politics Page
Go to Politics
Sign up for daily email from LA Observed