New Century files for Bankruptcy.

Well it looks like another sub-prime mortgage lender in the states is down for the count - New Century Financial filed for chapter 11 bankruptcy today and announced that they will fire 3200 employees. The thing that makes this a story to pay attention to is the fact that more than 2 dozen subprime lenders have shut down in recent months, New Century is just one of the latest. According to ml-implode.com 47 lenders have shut down since late 2006.

This could pose additional problems for the US housing market as foreclosed homes are added to the supply side while potential buyers with poor credit ratings are taken out of the demand side of the market.