Irvine-based mortgage lender New Century Financial Corp. said Tuesday loans for the third quarter came in at $15.8 billion, 2% lower from the second quarter and 5% lower than a year earlier.
In the second quarter, New Century made $16.2 billion in loans, up 21% from a year earlier.
The bulk of New Century’s loans go to borrowers with imperfect credit, known as subprime mortgages. The company has made a point to go after borrowers with more solid credit.
Suprime loans were 95% of New Century’s total in the third quarter.
Subprime lenders are feeling the squeeze of competition, higher interest rates and the prospect of riskier loans going bad.
In September, the average New Century subprime loan was at 8.5%, according to Chief Executive Brad Morrice. That’s up from 8.4% in the second quarter.
