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New Century Lending Up 43% in December

Irvine-based New Century Financial Corp. said it made $4.3 billion in mortgage loans in December, up 43% versus a year earlier.

The real estate investment trust, which lends to borrowers with less than perfect credit, said it made $42.2 billion in loans last year, up 54% from a year earlier. That was in line with the subprime lender’s earlier forecast.

But growth is expected to slow this year, with higher interest rates impacting borrowers’ demand for refinancing or taking home improvement loans. New Century expects to make at least $45 billion in loans this year, according to Robert K. Cole, chairman and chief executive officer.

Growth is expected to come from “the addition of loan production sales personnel and increased market penetration,” Cole said in a release.

In the fall, the company said it planned to lease 480,000 square feet of space at Irvine’s Park Place complex, just a few blocks from its current headquarters, according to sources.

The deal could include the building of a 20-story office tower, with New Century taking about half of it, they said.

Park Place is a sprawling 105-acre complex at the corner of Jamboree Road and Michelson Drive near John Wayne Airport.

New Century plans to consolidate many of its 1,700 workers here in one spot. The company now leases more than 300,000 square feet in different Orange County buildings, including its headquarters at 18400 Von Karman Ave.

New Century is set to release its full fourth-quarter earnings report on Feb. 3.

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