| People's Choice Home Loan Files for Bankruptcy (Update1)
March 20 (Bloomberg) -- People's Choice Home Loan Inc., a mortgage lender for people with credit problems, filed for bankruptcy protection. The Chapter 11 filing today in U.S. Bankruptcy Court in Santa Ana, California, comes as delinquency rates on so-called subprime home mortgages hit a four-year high. Subprime lenders specialize in loans to customers with bad credit or heavy debt. People's Choice, based in Irvine, California, is the fourth subprime lender to file for bankruptcy since December, joining Ownit Mortgage Solutions LLC, Mortgage Lenders Network USA Inc. and ResMae Mortgage Corp. In the past year, shares of three other subprime lenders -- Fremont General Corp., New Century Financial Corp. and NovaStar Financial Inc. -- have lost at least half their market value.
IBM jumps on board the mortgage ship
Just as the US mortgage biz flushes itself down the toilet, IBM has said it will offer software and computers that will help process wannabe homebuyers' applications. Based in North Carolina, IBM Lender Business Process Services Inc will include consultancy, mortgage processing, and management of home loan paperwork on behalf of lenders. .
The Work Horses of the Oil Patch
Yorker in January, he points out that all the data needed to figure out that Enron was a house of cards was readable in the company's various filings. If investors didn't bother to read them, he says, well, it's no reason to send the Ace of Spades, CEO Kenneth Skilling, to jail for 24 years. And, it shouldn't have taken Sam Spade to figure out that the House of New Century was not exactly as stable as the Pyramid of Cheops. We said as much right here in the pages of The Daily Reckoning: As a business model, lending money to people who can't pay it back has a serious flaw. And so nowthe poor people who took out loans to buy houses in Michiganand then lost their jobs to Koreans or Pakistanishave to move on. But what can they do with their houses? "U.S.
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