Monday, November 15th, 2010, 4:42 pm
Credit-Based Asset Servicing and Securitization, C-BASS, which purchased and serviced subprime and Alt-A mortgage loans, filed for Chapter 11 bankruptcy protection last week.
C-BASS, which reported $1 billion in debt in the filing, is owned through a joint-venture of mortgage insurers MGIC Investment Corp. (MTG: 8.39 0.00%) and Radian Group (RDN: 7.68 0.00%).
The company started with a $50 million initial investment in 1996. When subprime began to deteriorate, reaching a delinquency rate 40% in September, C-BASS began liquidating ownership, including selling Litton Loan Servicing to Goldman Sachs (GS: 167.22 0.00%) in 2007.
It currently is liquidating its existing portfolio and returning the proceeds to its investors, according to C-BASS.
Write to Jon Prior.http://www.housingwire.com/2010/11/15/subprime-mortgage-securitizer-c-bass-files-for-bankruptcy