Alabama Thrift Stops Mortgage Lending

It got stung by its losses and realized it could no longer manage the mortgage lending disaster.

The AP reports:

The second-largest thrift in Alabama is suspending mortgage lending amid hefty third-quarter losses as real-estate values moved lower and foreclosure rates turned higher.

Officials with New South Federal Savings Bank, which operates offices in nine states, say the company had a net loss of $41 million for the quarter.