Tuesday, June 19, 2007

Toward a Unified Theory of Asset Preservation

by Tanta on 6/19/2007 09:12:00 AM

It's 6:00 am. Do you know where your webmaster is?

From Dow Jones Newswire, via Brian (no link):

The Web site that takes in mortgage payments for New Century Financial Corp. was down for five days last week because the company didn't have staff capable of running it, according to a hedge fund that agreed to buy the mortgage provider's loan-servicing business.

The hedge fund, Carrington Capital Management, is set to complete its $188 million purchase of the loan-servicing business on June 29. . . .

Carrington said the Web site was out of service from June 9 through June 13 because the bankrupt company "did not have the appropriate personnel."

Among the thousands who lost or left their jobs when New Century filed for Chapter 11 protection April 2 were the people who designed system security, the hedge fund says.

A collapse of the loan servicing platform, Carrington said, could cost it $300,000 to $500,000 each day it can't use the technology to track troubled borrowers and collect on their loans.

Of course, I'm sure it's just the "people who designed system security" who walked out on the place. No reason to worry about the accounting department . . . or the file room . . .