Industry News

Senator calls for hearing on subprime lending

Fremont General announces layoffs; SEC investigates lenders

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Connecticut Democratic Sen. Christopher Dodd will hold hearings Thursday on the troubles in the subprime mortgage lending industry. Dodd, chairman of the Senate Banking Committee, has invited executives from five top mortgage lenders to testify, along with federal regulators and consumer advocates. "At the very least, homeowners facing foreclosure deserve to know what factors contributed to their dire financial straits, and what steps are needed to fix this pressing problem," Dodd said in a press release. Lenders invited to participate were HSBC, New Century Mortgage Corp., Countrywide Home Loans, WMC Mortgage and First Franklin Mortgage. Layoffs at Fremont General Meanwhile, Santa Monica, Calif.-based Fremont General Corp. will reportedly lay off a significant number of the 2,400 employees at Fremont Investment & Loan by May 18 if it can't sell the lender. Fremont General's attempts to sell its home lending division have been complicated by a March 7 cease-and-desist order from th...