Sub-prime mortgage lenders bite the dust

“Rising defaults in the market for sub-prime mortgages have claimed another victim: Brea-based ResMAE Mortgage Corp. said Tuesday that it had filed for Bankruptcy Court protection. Separately, Santa Monica-based sub-prime lender Fremont General Corp. said it no longer would offer second mortgages to home buyers who need to borrow their down payment. The sub-prime market — loans to people with bad credit, high debt loads or other risk factors — has been rocked in recent days by news that more borrowers are having trouble making their payments. Last week, Irvine-based New Century Financial Corp. said it would have to restate earnings for 2006 because of losses tied to sub-prime mortgage defaults… ResMAE is at least the 20th mortgage company to be sold or closed as delinquencies rise and the market for home loans to high-risk borrowers contracts.”