Archive for the ‘Mortgages’ Category

Morgan Stanley knew early on that New Century's practices were unsound, Martha Coakley said.

A victory was won today for home owners across the Commonwealth.  Attorney General Martha Coakley office discovered that Morgan Stanley was funding New Country Financial Corp.   Allowing New Country Financial Corp to write subprime loans in 2005 through 2007.   Coakley said, “Morgan Stanley knew that New Century was making predatory loans, but continued to provide the lender billions of mortgage dollars by buying the loans to turn them into securities.” The $102 million settlement from Wall Street’s Morgan Stanley & Co.,is going to  help more than 1,000 Massachusetts homeowners who are in foreclosure or saddled with unwieldy subprime mortgages through New Country Financial Corp.