Filed under: Law, Scandals, Countrywide Financial (CFC), New Century Fin’l (NEW), NovaStar Financial (NFI), Housing

In what could be a a key ruling for those of us hoping to learn more about shady subprime lending practices, a bankruptcy judge has given New Century Financial until February 6 to turn over a report of an investigation into the firm’s cash handling practices to bankruptcy monitors.

Michael Missal was appointed by judge Kevin Carey to look into the accounting mistakes and/or fraud that led the firm to file false financial statement with the SEC in 2005 and 2006. According to the AP, “That report has yet to be filed. Missal said that continued foot-dragging by the defunct lender, former leaders and accounting firm KPMG will hold it up until March.”

However, he has filed the report on possible cash mishandling, but it has not been made public at the request of New Century.

Continue reading New Century Financial’s dirty laundry may expose sleazy subprime practices

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