Bad news from lenders that write high-risk home loans continued today with Fremont General Corp. in Santa Monica saying it has warned a "significant" number of its 2,400 mortgage employees to expect pink slips in 60 days.Fremont shut down its Brea-based sub-prime lending unit this month after federal regulators accused it of taking too many risks, including making loans likely to end in foreclosure. The unit is up for sale, but Fremont has told investors it can't assure them it will find a buyer.
Thousands more layoffs are expected at other companies in the business of making loans to borrowers with weak credit, heavy debt loads or little home equity. The largest independent lender in the industry, New Century Financial Corp. of Irvine, also shut down this month after Wall Street cut off its supply of money to lend.
New Century spokeswoman Laura Oberhelman declined comment on the prospects of more layoffs. She said the company employs about 6,700 workers, down from 7,200 at the start of the year, after laying off 200 people in January and 300 in March.
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