Irvine-based New Century Financial Corp. originated and bought $4.5 billion in mortgage loans in June, down 8% from a year earlier.
Even so, its loan volume for the past three months hit a new record of $13.4 billion, the company said Friday. The total represents a 9% gain versus its previous record in the second quarter of 2004.
“We are very pleased with these results and are well on track to achieve our 2005 loan production target of $45 billion or more,” said Robert Cole, chief executive.
The company originates some loans and buys others from other companies. It eventually resells the loans to investors as securities. It specializes in loans to people with imperfect credit, known as subprime loans.
Its shares got a 2.3% boost in trading Friday to a little more than $52.3.
In a previous statement, the company said its profit margins have slimmed this year on higher costs for hiring, administration, marketing and other factors.
New Century is facing tough competition from larger subprime lender Orange-based Ameriquest Capital Corp. Industry sources said Ameriquest is aggressively pricing its loans.
