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LOS ANGELES (AP) - Fannie Mae will no longer allow New Century Financial Corp. to sell mortgage loans to the U.S. government-sponsored company, alleging the troubled lender has breached the terms of its contracts, New Century said Tuesday.
Fannie Mae, formally known as the Federal National Mortgage Association, notified New Century last week that it had allegedly violated the contract, according to documents filed with the Securities and Exchange Commission.
As a result, New Century and its subsidiaries can no longer sell mortgage loans directly to Fannie Mae or act as the primary servicer of any home loans for the company, according to the filing.
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