Irvine-based New Century Financial Corp. said Tuesday that it made $4 billion in mortgage loans in February.
The February result was in line with January volume, but down nearly 25% compared to late 2005,a normal seasonal dropoff, according to the company.
New Century reported $3.4 billion in production from historical operations in February. It recorded $600 million in production from recently acquired operations, including RBC Mortgage Co.
The results for the company’s historical operations were up 17% from a year ago.
There’s been a drop in volume for New Century, which lends to borrowers with imperfect credit, since late 2005.
In December, New Century reported $5.3 billion in loans, a 23% rise from a year earlier. The company did $5.1 billion in November and $5.3 billion in October.
The decline in February loan production from late last year reflected the typical seasonality of the business, said Robert Cole, New Century chairman and chief executive.
The gain in February loan volume versus a year earlier was notable in light of the company’s efforts to boost the interest rate it charges to borrowers,8.5% for historical operations last month, Cole said.
Some mortgage lenders have seen profits shrink as short-term interest rates have moved higher, while longer-term rates stay flat. New Century borrows at short-term rates and lends at long-term rates.
Shares of New Century were off about 3% Tuesday. The company has a market value of $2.2 billion.
