71 F
Laguna Hills
Wednesday, May 29, 2024
-Advertisement-

New Century Loan Volume Exceeds

Shares of Irvine-based New Century Financial Corp. closed more than 4% higher on Monday after the subprime mortgage lender reported higher than expected growth in loan production for 2005.

New Century posted 2005 loan production of $56.1 billion, beating its earlier guidance of $50 billion to $55 billion. The 2005 total was up 33% from 2004.

For December, New Century reported $5.3 billion in loans, a 23% rise from a year earlier. The company did $5.1 billion in November loans and $5.3 billion in October.

Shares of New Century, which lends to borrowers with imperfect credit, closed up 4.5% with a market value of $2.2 billion.

The growth was due to stepped up sales and marketing efforts that drove more business directly from borrowers. New Century works with brokers and borrowers to make loans.

December’s total included $800 million in loans from newly acquired operations, including RBC Mortgage Co. Without acquisitions, December would have been up 5% from a year earlier.

Last month, New Century announced it was paying $10 million plus future payments for Access Lending Corp., a funder of home loans generated by brokers. That deal should close in the first quarter.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-