Industry NewsMortgage

SEC charges former New Century execs

Subprime lender accused of misleading investors
Published on Dec 8, 2009

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by CareyBot

Three former executives of New Century Financial Corp. -- one of the most prominent subprime lenders during the housing boom -- have been charged with securities fraud for allegedly misleading investors.

The executives allegedly failed to disclose important information about the company's performance in 2006, including dramatic increases in early loan defaults, loan repurchases and pending loan repurchase requests, the Securities and Exchange Commission said in a complaint.