Subprime Lender Fieldstone Mortgage in Chapter 11 Bankruptcy

Fieldstone Mortgage Company, a subprime home mortgage provider, which was acquired in July by mortgage insurers MGIC Investment Corp filed for bankruptcy protection.

Lawyers from the company wrote in a statement that “Due to the wide-ranging economic downturn in the credit markets, and the severe financial pressures facing the debtor, the debtor was unsuccessful in its efforts to resolve its liquidity crisis outside the bankruptcy forum.”

According to the filing the Columbia, Maryland-based subprime mortgage company said it made 5.5 billion dollars worth of loans last year. Fieldstone listed over $100 million in liabilities and between 1 million and 100 million dollars in assets. Debtors will be hit the hardest are Morgan Stanley with $38.5 million owed, HSBC Holdings with $23.3 million owed, Bear Stearns with $15.3 million owed, and Countrywide Financial with $10.4 million owed.

To read more about Fieldstone Mortgage in Chapter 11 bankruptcy head on over to Reuters.