Industry News

New Century continues to grow loan production

Subprime lender moving into prime, Alt-A market

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Subprime lender New Century Financial Corp. said today it boosted total mortgage loan production in the second quarter to $16.2 billion -- a 21 percent increase over the previous quarter and 20 percent better than the same period a year ago. The Irvine, Calif.-based company's second-quarter net earnings of $105.5 million, or $1.81 per share, represented an 11 percent increase from second-quarter 2005. While other lenders have reported falling production and profits in the second quarter, New Century says it had its second-best quarter for loan production in the company's 11-year history. The growth was partly attributable to the addition of prime and Alt-A loans to the company's product lineup, said Brad A. Morrice, president and chief executive officer. "We are pleased with the second quarter's strong loan production volume, which resulted from modest growth in our core non-prime product coupled with the addition of our Prime and Alt-A products," Morrice said. Subprime loans, howeve...