From The New York Times
Lender Faces Credit Crisis With Banks
Wall Street lenders cut their credit lines to New Century Financial, forcing it ever closer to bankruptcy.
We have been hearing for years now that a mortgage crash might happen. So many people had rushed into the housing market without adequate capital, opting in many cases for ARMs, sub-primes, interest-only and other questionable lending instruments. Banks were only too happy to float the paper and mortgage lenders were only too happy to write it. Now, tick-tock…tick-tock…
Epilog: On April 2, 2007, New Century (the lender mentioned above) filed for bankruptcy, reported The New York Times