(Washington, DC) Commissioner Thomas E. Hampton of the District of Columbia Department of Insurance, Securities and Banking (DISB) today urged District consumers and homeowners with any questions or concerns related to subprime mortgage lending to contact DISB in response to New Century Mortgage’s decision to stop funding new loans in the District and several other states. DISB regulates banks, mortgage lenders and brokers among other financial industries in the District of Columbia.

New Century, the second largest subprime mortgage lender in the United States, has recently decided to stop funding new loans due to its financial difficulties. 

“Our primary concern is to verify that the loans in the pipeline are being served and that all applicable fees and funds are returned to District residents,” said Hampton. “We want to make sure that our District consumers are aware of their options and understand that they can always call DISB with any questions or issues related to this case or subprime mortgage lending in general.”

DISB has been actively communicating with senior management of New Century and several other state regulators to ensure the protection of consumer interests. Staff at DISB is closely monitoring the company’s handling of the loans at different stages. New Century informed DISB that it started a calling campaign yesterday to inform consumers of the company’s financial situation and the status of their mortgages held with the company. New Century has 42 mortgage lenders and brokers licensed in the District of Columbia and is currently working on finding new lenders for the remaining few dozen mortgages in the District. 

Hampton said he would like to see consumers with any issues related to mortgage lending to step forward and call DISB at (202) 727-8000 or visit the agency online to file a complaint. Consumers of New Century are also urged to contact the company’s toll free hotline at (877) 481-6702, or visit http://www.newcentury.com/.