Fieldstone Investment Corp., the Columbia-based subprime mortgage lender that was acquired last month, has stopped accepting new loan applications from consumers and mortgage brokers as its new owner scrambles to overcome a liquidity squeeze and answer margin calls.
“We are currently facing some liquidity challenges stemming from the severe state of disruption in the credit markets,” spokeswoman Lisa Brzezinski said yesterday. “These challenges have naturally required us to carefully evaluate current cash allocations.”
Who would buy Fieldstone? C-BASS bought Fieldstone just last month (July 2007) and C-BASS is on the ropes. With good judgement like this we can see why. As HSBC was taking $10.6 billion in subprime loan losses C-BASS was still buying.