More Cracks In the Armor: Mortgage Companies Ailing

More Cracks In the Armor: Mortgage Companies Ailing

A leading subprime mortgage lender, New Century Financial Corp, files for Chapter 11 bankruptcy protection. Later that month, another mortgage giant, Countrywide Financial, announces a 37% tumble in profits in its first quarter; despite layoffs and attempts to raise money, its revenues and profits continue to dive month after month.