Fieldstone Mortgage Files For Chapter 11

According to a report from Reuters, subprime home loan provider Fieldstone Mortgage Co. has filed for Chapter 11 bankruptcy protection with the U.S. bankruptcy court in Baltimore.

Fieldstone, which was acquired this summer by a joint venture between MGIC Investment Corp. and Radian Group Inc., reportedly made more than $5 billion in loans last year.

The company has listed several large financial firms among its unsecured creditors, including Morgan Stanley, HSBC, Bear Stearns and Countrywide Financial Corp. Fieldstone is seeking permission to obtain up to $3.8 million of debtor-in-possession financing to keep operating while in bankruptcy.


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