Fieldstone Mortgage Files For Bankruptcy!
An article published by the Baltimore Sun talks about the Columbia subprime lender Fieldstone Mortgage’s file for bankruptcy. According to the article:
- The company, which has whittled its work force from 1,000 employees to a skeleton crew of 25, reported it had more than $100 million in liabilities and less than that in assets, according to its Chapter 11 filing Friday with the U.S. Bankruptcy Court in Baltimore.
- Fieldstone’s reversal of fortune was abrupt. Founded in 1995, the company originated $5.5 billion in mortgage loans and operated in 50 states and the District of Columbia last year. But by August, the company had stopped originating loans.
- Company officials blamed a sharp increase in delinquent mortgage payments and loan defaults, coupled with margin calls from Wall Street banks and a credit market downturn that limited access to capital.
- Sher said that company officials have not decided whether Fieldstone would be reorganized once the bankruptcy case is resolved.
It is sad to see another lending company fall under the mortgage crisis. And it’s not just the banking giants making the news, it’s the smaller companies. Any company exposed to the second mortgage market is at risk. This just adds to the speculation that the subprime crisis is far from over.
November 29, 2007 | Filed Under Second Mortgage
Comments
Leave a Reply
You must be logged in to post a comment.