Natixis to Bid New Century Adieu

The company is under investigation by the Securities and Exchange Commission and U.S. Attorney's office, and the New York Stock Exchange delisted the company for falling below listing requirements.

Most recently, Barclays has asked New Century to repurchase $900 million of mortgage loans.

Lenders such as New Century, Fremont General (FMT Quote), Accredited Home Lenders (LEND Quote) and NovaStar (NFI Quote) have been rocked by rising delinquencies and defaults.

In addition, the companies also have been slammed by financing providers looking for lenders to take back at least a portion of loans sold to them.

More than two dozen subprime lenders have been forced to close or sell operations as defaults on those mortgages have risen to a seven-year high, according to data compiled by Friedman Billings Ramsey of Arlington, Va.

Fremont General announced last week that it is selling $4 billion of loans. The Santa Monica, Calif., lender said it was exiting the subprime business in February.

Accredited scored a $200 million term loan commitment from hedge fund Farallon Capital Management of San Francisco. Accredited is selling $2.7 billion worth of loans held for sale to an unnamed buyer so it can meet margin calls.