Bad credit loan lender in trouble
The subprime mortgage market could be in trouble suggests Wall Street analysts this week. Bad credit lender New Century Financial Corp have apparently let slip the possibility of a file for bankruptcy after a recent drop in the market.
The lender has stopped processing any new loan applications, surprisingly after recently announcing new funds of over £137 Million. Investors fear a backlash from increasing loan miss payments will damage consumer confidence as lenders criteria gets tighter due to a slow down in the housing market.
Of course, analysts keep a close eye on consumer spending trends and their action has a direct effect on the US economic growth.
The bad credit loan option have become increasingly popular, with the lender fuelling growth in the market. This recent news is something of a shock to the industry.
