SouthStar Funding closes doors

Privately owned mortgage lender SouthStar Funding, have had to close their doors as it has been battered by the subprime lending market. The Atlanta based lender had to close all of their accounts on Monday as their investors cut of all their finances; this is a result of payment defaults.

SouthStar had to let all of their customers know by e-mail and that they would have to cancel any pending closings. The subprime market, which SouthStar Funding used to deal in, caters for people with poor credit and while this market has suffered of late, other markets have been feeling the effects as well.

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