SanLuisObispo.com - "Lender crisis hits SLO County" (9-1-07)

"21st Century Mortgage Co., a Paso Robles-based firm that was one of the largest local lenders specializing in high-risk mortgages, has closed after 10 years in business. It’s a local example of the broader shakeout in the U.S. mortgage market. Noting that she could no longer maintain daily operations, president Linda Kennedy — in a letter to investors dated Aug. 17—said the closure was the result of a 'significant reduction in revenue for the company' because of the real estate market downturn. While 21st Century did conventional loans, it specialized in hard-money lending, a type of real estate- backed loan. It would essentially pool private money —selling fractional interests in deeds of trusts secured by property — to make high-interest loans."

Los Angeles Times - "U.S. to take on credit crisis" (9-1-07)

"Hoping to calm turbulence in the financial markets, President Bush and Federal Reserve Chairman Ben S. Bernanke took separate steps Friday to ease the credit crunch that has socked investors and dried up access to home loans for millions of Americans. In their remarks the two leaders displayed a painful recognition that the credit crisis -- triggered by a wave of defaults on sub-prime mortgages -- had ballooned beyond anything they had anticipated."

Yahoo - "Former Subprime Leader Ameriquest Closes" (9-1-07)

"Ameriquest Mortgage Co., once the nation's largest subprime lender, will close with barely a whimper, after the other assets of its parent company were sold Friday to Citigroup Inc. Ameriquest, which saw its fortunes soar during the housing boom by lending to people with less than stellar credit, is the latest victim of a mortgage crisis that has left bankrupt companies and cash-strapped borrowers in its wake. Along with shuttering Ameriquest, Orange-based ACC Capital Holdings also said it was selling its wholesale mortgage origination operation and a mortgage servicing business to Citigroup for an undisclosed sum."