Fieldstone Mortgage of Columbia Maryland files bankruptcy

Columbia Maryland based Fieldstone Mortgage Co. has filed for Chapter 11 bankruptcy protection. The company owes millions to Morgan Stanley, which has a $38.5 million claim, HSBC’s Household International Inc., with a $23.3 million claim, and Countrywide with a $10.4 million claim. The company says it cannot make new mortgages and has laid off most employees. Many risky mortgages in today’s market contain a buy-back clause whereby the lender must buy back bad mortgages. While this may or may not be the case with Fieldstone originated $5.5 billion worth of mortgage loans in 50 states and the District of Columbia last year. Fieldstone once employed approximately 1000 people and was a HUD approved lender.