BluefoxToday blog

New Century bonus plan.

That's all we need now. One of the leading subprime lenders that is now in bankruptcy is seeking to grant bonuses to its top managers. The leadership there has the nerve to make that request in front of the bankruptcy judge in Delaware. First they run a large home loan institution to the ground with ill-advised policies and then they turn around as if nothing had happened and ask for bonus money for their labors.

Should they be able to attract buyers for the mortgage company's assets, they argue, they then ought to be entitled to bonuses. But the documents that were filed with the court state that they would get paid even if they didn't sell any of the assets. How about that? The lender also asked that the court issue a limited notice of the plan, meaning that the idea is subject to only limited exposure to creditors. When the creditors find out about that, they'll be justifiably thrilled.

The U.S. trustee for the bankruptcy court is dead set against this audacious scheme. Let's hope the judge agrees.

_______________________________________________________________________________

Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 2 commentsEsko Kiuru • April 13 2007 01:28PM
New Century bonus plan.
share
That's all we need now. One of the leading subprime lenders that is now in bankruptcy is seeking to grant bonuses to its top managers. The leadership there has the nerve to make that request in front of the bankruptcy judge in Delaware. First they… more
Vegas home prices to decline?
share
Here's a 12-month forecast for housing values in the top 100 U. S. markets as reported by CNN Money McAllen, Texas, leads the way with a predicted gain of 9. 8%, followed by Tulsa and El Paso. Congratulations. On the opposite end of the scale, at… more
Green housing bank.
share
We have our first commercial bank located in San Francisco, where else, that aims its lending at green businesses. Appropriately it's called the New Resource Bank. The founder believes that sustainability has become an important market player and it… more
First-time home buyer challenge.
share
It's tough out there for the first-time house buyer right now. The price levels in many areas have moved up far enough to put a crimp on their ability to own a property of their own. Las Vegas valley is one of them. Affordability is definitely an… more
Beat foreclosure with credit counseling.
share
It's a very difficult situation when a homeowner is faced with a potential foreclosure. There are solutions, but they aren't easy to put into practice. With the subprime woes and the real estate market downturn upon us, there are increasing numbers… more
Vegas high-rise condos seek LEED certification.
share
LEED stands for Leadership in Energy and Environmental Design. It's a Green Building Rating System designed by the U. S. Green Building Council, a nationally recognized benchmark for the design, construction and operation of high performance green… more
No escrow accounts for subprimes.
share
More details are trickling in every day. This is getting fascinating. Federal regulators now discover that most subprime loans issued during the last few years had no escrow accounts. Lenders usually require them to guarantee the timely payment of… more
High-rise condominium tower for tomorrow.
share
Housing is a key sector in the efforts to protect our environment and curb global warming. The new federal building in San Francisco is showing the way how to conserve and still have a fully operational office structure. I don't see why these same… more
Subprime solutions 2.
share
What can a homeowner who is in imminent mortgage trouble do? The most important step is to contact the lender right away and tell them about the situation. Swallow all the pride he may harbor and just do it. This should be done before any payments… more
Subprime bailout?
share
All government levels are hesitant at this point to get involved in any meaningful way. Perhaps that's the correct call. In case there was a bailout, how would that shape up? In a full bailout of affected borrowers, the banks would also be rescued… more