Aug
3
At Least 70 Mortgage Companies Have Gone Bankrupt, Halted Operations or Sought Buyers
Filed Under American Home Mortgage, Fremont Mortgage, Lenders With Problems 2007, Mortgage News, Mortgage Video, New Century Mortgage, NovaStar, NovaStar Financial, Option One Mortgage, Ownit Mortgage Solutions, Subprime Implosion, Subprime Mortgage, Subprime Mortgage Industry, www.ncen.com, www.newcentury.com | Leave a Comment
Analysis and Discussion with Joseph Mason, Professor of Finance at Drexel University about Subprime Shockwaves: Accredited Home Lenders, MBIA, Bundesbank, Global Bank Earnings, Barclays, Credit Suisse, Bank of China, American Home
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May
9
New Century Sells Off $170 Million In Loans For $58 Million
Filed Under New Century Mortgage, www.ncen.com, www.newcentury.com | Leave a Comment
New Century Sells Off $170 Million In Loans For $58 Million
Click to continue reading “New Century Sells Off $170 Million In Loans For $58 Million”
Apr
25
New Century Mortgage Receives ‘OK’ To Sell
Filed Under Access Lending, New Century Mortgage, www.ncen.com, www.newcentury.com | Leave a Comment
New Century Financial was awarded a bankruptcy approval 04/24/2007 to proceed with the sale of its loan origination unit in an expedient auction with offers due by 5/2/2007. Auction bids will begin with offers of at least $1 million.
U.S. Bankruptcy Judge Kevin Carey agreed to sign an order approving the auction. Additionally, he agreed to sign an order allowing New Century to sell its Access Lending subsidiary.
New Century acquired Access Lending last year and the original founder of Access, David Fleig, agreed to purchase it for about $76,000 and 60 percent of the proceeds from the sale of loans. According to the court filing, New Century has estimated that its portion of the proceeds would total about $6 million.
New Century Mortgage had been the largest provider of subprime mortgages; they primarily lent money to people with poor credit histories prior to filing for bankruptcy this month. New Century Mortgage imploded under huge delinquency rates and defaults, a federal criminal probe, and orders by or agreements with at least 17 U.S. states to stop lending.
New Century is currently being traded for an embarrassing 93¢ per share, down from a 52 week high of $51.97 on May 1, 2006.
In the final agreement, New Century has committed to file it’s financial reports by 5/31/2007.
Apr
10
‘Speed Up The Sale’ - New Century Mortgage
Filed Under Mortgage News, New Century Mortgage, www.ncen.com | Leave a Comment
In an effort to preserve as much value as possible, New Century representatives requested an expedient sale according to a documented filing with the U.S. bankruptcy court in Wilmington, Delaware.
“There is a narrow window of opportunity,” wrote Marcos Ramos, a lawyer at Richards, Layton & Finger PA representing New Century. “Indeed, it might be difficult to pursue and complete a sale of the loan origination platform after early May because the debtors have ceased originating loans.”
New Century formally requested U.S. Bankruptcy Judge Kevin Carey to schedule an April 17 hearing to set up bidding procedures, and a May 15 hearing to approve a successful bid. New Century has agreed to sell its loan servicing unit to hedge fund Carrington Capital Management LLC for $133 million and they have agreed to sell some loans to Royal Bank of Scotland Group Plc’s Greenwich Capital Financial Products Inc. unit for $50 million as well.
Apr
2
It’s Official New Century Files Chapter 11 - Layoff 3,200
Filed Under New Century Mortgage | Leave a Comment
As reported first this morning, New Century made their long awaited bankruptcy official by filing a voluntary petition for relief under chapter 11 of the U.S. Bankruptcy Code. The filing was made this morning in the U.S. Bankruptcy Court for the District of Delaware.
New Century also announced it will reduce its workforce by approximately 3,200, or 54%, to better align the company’s cost structure with the current operating environment and to properly size these businesses in preparation for possible sale. The layoffs are effective immediately.
More information about New Century’s chapter 11 case is available on its Web site at http://www.ncenrestructuring.com/.
Information for Customers
The company is still accepting loan payments as usual from customers with existing loans serviced by New Century. Customers with questions about existing loans should call 1-800-561-4567 or visit http://www.ncen.com/ for additional information.
Apr
2
2 New Century Mortgage Milestones Anticipated Today
Filed Under Lenders With Problems 2007, New Century Mortgage | Leave a Comment
Ailing subprime mortgage giant New Century Financial is expected to file for both bankruptcy protection today and they have also voluntarily terminated its seller/servicer eligibility with Freddie Mac. According to a Freddie Mac spokeswoman, the Irvine, Calif.-based mortgage banker never sold a whole loan to the secondary market investor.
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Mar
17
New Century Retains Employees
Filed Under Lenders With Problems 2007, Mortgage News, New Century Mortgage, Subprime Mortgage | Leave a Comment
In an effort to retain their massive employee base, New Century Mortgage has guaranteed some employees 1/2 of Decembers pay for the next 3 months. As of this moment this is what we are understanding, we have confirmation that this compensation was offered to their existing account executives positions.
New Century Mortgage is/was the largest subprime mortgage lender.
"New Century understands the value of their sales force and that the sales division has been the high performance engine that drives the company. By spending thousands of dollars on every individual every year, New Century has been able to build great employees and a great company. This is an obvious gesture to maintain their integrity and see the human side of the company despite their current trials and tribulations. Only time will tell.", said Scott Pasinski a well known mortgage professional.
We shall see if New Century is able to pull themselves from this dilemma or what their true intentions really are. As of today, 3-17-07 approximately 41 mortgage lenders are experiencing financial problems or have gone out of business.
There appears to be some belief internally.
Your thoughts are…
Mar
13
Is New Century really Enron?
Filed Under Lenders With Problems 2007, Mortgage News, New Century Mortgage, Subprime Mortgage | 1 Comment
WOW, what can we really say here? A lot!
Lets start with New Century is not the only company that has problems with screwed up ideas. There are over 36 sub prime mortgage companies since late 2006 that have fallen upon REAL hard times or are out of business.
Did you know that New Century restated Form 8-K on December 19, 2006 and Robert K. Cole announced that he will resign as Chairman of the Board? What? Did you know that according to Columbia Law School, ‘…stock prices of restating companies declined 10% on average on the announcement of these restatements, with restating firms losing over $100 billion in market capitalization over a short three day trading window surrounding these restatements’.
At the time, I do know their stocks were valued around $30.00 and now they have a value just over $3.00 (we haven’t looked in a few days).
How is New Century not responsible for some of the current economic climate? They are the largest sub prime mortgage company in the industry, well not anymore. But really, I know in my world as well as the world of 99% of my friends and the people I work with, I am responsible for what I do. If I make a mistake, somehow it is coming back to me and I’m paying for it. That’s actually fine because it promotes responsibility.
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Mar
9
New Century plunges and expected to seek bankruptcy protection
Filed Under Lenders With Problems 2007, Mortgage News, New Century Mortgage, Subprime Mortgage | Leave a Comment
NEW YORK (Reuters) — New Century plunged further Friday after analysts said they expect the subprime lender to seek bankruptcy protection soon.
In morning trading, stock vales fell 18.6 percent, to $3.15, after earlier falling to $2.96. They began the year at $31.59.
The decline came after New Century said Thursday it stopped taking loan applications, lined up $265 million of funding secured by its mortgage loan portfolio and other assets and arranged to refinance $710 million of loans. Morgan Stanley provided the financing, people familiar with the matter said.
New Century said it has failed so far to obtain relief from several lenders. Analysts said the Irvine, California-based real estate investment trust, having pledged most of its assets as collateral, has little left to offer creditors.
Click to continue reading “New Century plunges and expected to seek bankruptcy protection”


