343:
Kenneally), barred them from serving as directors of public companies for five years, and levied fines and profit-disgorgement on them. None of the defendants admitted any wrongdoing. The directors of New
Century were not sued or barred by the SEC. On the same day the SEC settlement was announced, New Century, and its directors and officers settled civil class actions claims brought against them and the company. The same three officers listed above were parties to that civil settlement, as were the following former directors of New Century: co-founder Robert K. Cole, the estate of co-founder Edward Gotschall, Fredrick J. Forster, Michael M. Sachs, Harold A. Black, Donald E. Lange, Terrence P. Sandvik, Richard A. Zona, Marilyn A. Alexander,
306:, to repossess the equipment, which includes computer servers, and chairs. New Century said that would disrupt its effort to wind down operations and repay creditors. New Century said "much of the data and information" involving its assets and business operations, including accounting information, is stored on the computers, or generated by them. New Century also said "it is critical for the debtors to use the equipment" so that the loan-servicing business it recently sold to Carrington Capital Management can be kept "operating as a going concern." Carrington paid $ 188 million for the business.
255:, on the grounds that it hadn't informed the state of its financial difficulties. New Jersey did the same that day. New Century said it intended to comply with the orders, pending any appeals. The company received cease and desist orders from the states of Connecticut, Maryland, Rhode Island and Tennessee on March 14 and 15, and by March 19, it was under such orders in eight states total, including Pennsylvania. California followed on March 16.
361:(2015), young investors Charlie Geller and Jamie Shipley have bet heavily on the failure of sub-prime mortgage bonds, but have to endure an excruciating wait while the spike in defaults seems to leave the housing market unaffected. But on 2 April 2007, they learn of New Century's bankruptcy while watching
215:
In a filing on March 12, 2007, it said that its lenders could demand $ 8.4 billion in loan repayments which it couldn't fulfill. It was announced that the $ 8.4 billion in obligations which could come due immediately, with the company considered close to bankruptcy, as it did not have the cash to do
203:
While New
Century's problems became public news in February & March 2007, primarily as a result of the pullback of more than half of its 11 warehouse lenders, (who funded New Century's loan closings until they could be securitized), mortgage insiders heard rumors of New Century's loss of some of
178:
By 2007, New
Century had been the largest independent provider of subprime mortgages in the United States. On January 1, 2007, New Century had approximately 7,200 full-time employees and a market capitalization of $ 1.75 billion. As of January 1, 2007, it was headed by Brad Morrice as president and
301:
was allowed to proceed with plans to seize computers and other equipment it leased to the bankrupt housing lender. GE Capital, arguing that New
Century owes it $ 8.7 million on leased equipment and can't stay current on payments, asked a judge to lift the protection normally granted to companies in
239:
notifying the company of a preliminary investigation. The filing stated that the U.S. Attorney's office indicated in a letter dated
February 28, 2007 that it was conducting a criminal inquiry in connection with trading in the company's securities as well as accounting errors regarding the company's
223:
halted trading of New
Century Financial Corporation, delisting the company. Beforehand, the company's shares had plunged 89% that month. But on March 13, 2007, the NYSE delisted the corporation and by the next day its market capitalization was less than $ 55 million. New Century was now trading on
329:
On
December 7, 2009, federal regulators sued three former officers of New Century Financial Corp. (Brad Morrice, Patti M. Dodge and David N. Kenneally), accusing them of misleading the company's investors about the company's prospects, as pervasive bad acts in the mortgage industry began to become
207:
On March 8, 2007, New
Century Financial Corporation announced that it was stopping new loans while it sought new funding. Early on March 12, it said that its financing had been cut off from most creditors, or that most planned to do so, and warned that many of its loan obligations were in default.
278:
bankruptcy. New
Century Financial Corporation and its related entities filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, District of Delaware located in Wilmington, Delaware. New Century Financial Corporation listed
309:
In March 2008, during the liquidation of New
Century Financial Corporation, a private company in Northern Illinois acquired only the brand assets in the bankruptcy. New Century Financial held several brands including Home123. The brand Home123 was reintroduced to the market as a real estate
158:
in issuing subprime mortgages, making $ 51.6 billion in subprime loans. Subprime mortgage loans are made to borrowers with limited or bad credit history. With a higher rate of default than prime loans, subprime mortgage loans are priced based on the risk assumed by the lender. In marketing the
342:
reported that settlements had been reached between the SEC, plaintiffs representing a class of investors, and directors and officers of New Century. The SEC settlement, which involved an action brought by the SEC against three officers of New Century (Brad Morrice, Patti M. Dodge and David N.
321:
On March 26, 2008, an unsealed report by bankruptcy court examiner Michael J. Missal outlined a number of "significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes," and accused auditor
250:
New Century Financial Corporation and Home123 Corporation received a cease and desist notice on March 14, 2007, from Connecticut Banking Commissioner Howard F. Pitkin, for failing to meet agreements. That day it was also blocked from making loans in
153:
As of September 30, 2006, New Century reported that it had $ 25.1 billion in total assets, with total liabilities at $ 23 billion. At the end of the year, it reported $ 350 million in cash and liquidity. In 2006, the company was second only to
240:
allowance for repurchase losses. The filing further stated that the Securities and Exchange Commission has requested a meeting with the company to discuss the company's previous announcement that it would restate certain financial statement.
266:. In a filing with the Securities and Exchange Commission, New Century Financial Corporation said that Fannie Mae terminated "for cause" a mortgage selling and servicing contract with it citing alleged breaches of that contract and others.
282:
At the time it filed for bankruptcy, it had already fired 3,200 employees, or 54% of its work force, with plans to quickly sell assets in the upcoming month and a half. The company secured $ 150 million of financing from
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211:
New Century Financial Corporation also said that one of its financial backers had demanded that the company repurchase some loans pursuant to repurchase provisions contained in loan purchase agreements.
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In the spring of 2007, New Century went into a "death spiral". On March 8 it announced it would stop accepting loan applications. Four days later trading of its stock on the NYSE was halted.
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was $ 417 million. The company had 35 regional operating centers as of late 2005, with headquarters remaining in Irvine, California. In 2005, 37 percent of its business was in California.
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liabilities of more than $ 100 million. New Century Financial Corporation also announced that the employment of about 3,200 people, more than half the workforce, would be terminated.
118:
bankruptcy. In July 2010, three officers of the company agreed to pay $ 90 million in settlements and were barred from serving as directors of public companies for five years.
247:
had demanded that New Century immediately pay back $ 900 million of mortgage loans. Just days before, New Century had said it had less than $ 60 million of cash on hand.
131:
It was founded in 1995 by a trio of formers manager and cofounders at Option One Mortgage, including Brad Morrice, who became chief executive. It was headquartered in
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In July 2010, three officers of the company agreed to pay $ 90 million in settlements and were barred from serving as directors of public companies for five years.
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115:
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In the spring of 2007, New Century ran into financial difficulties, and trading of its stock on the NYSE was halted. On April 2, 2007, it filed for
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135:. It originally employed 50 people in 1996, when it began originating and purchasing loans. From 1997 until 2004, stock value rose 561 percent.
172:
142:. In that year it originated $ 42.2 billion in mortgages and its stock reached a high of nearly $ 64 per share by the end of the year. In
231:
On March 13, 2007, New Century Financial Corporation reported in a regulatory filing that it has received a grand jury subpoena from the
511:
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236:
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had worries about the company's ability to stay solvent. Over the subsequent week, the company lost 78% of its stock value.
193:
On March 2, 2007, it announced it was the subject of two criminal probes by the federal government, and that its auditor
374:
107:
It was founded in 1995. In 2004 it converted to a real estate investment trust. In 2006, the company was second only to
97:
777:"State Banking Commissioner Issues Cease and Desist Order Against New Century Mortgage Corporation and Its Affiliate"
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so that it could continue to operate during the bankruptcy process. It was reported it had about 100,000 creditors.
104:
in the United States through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation.
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On May 25, 2007, they filed their 8-K form, a day after stating that they "...probably overstated 2005 earnings."
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On March 20, 2007, New Century Financial Corporation said that it could no longer sell mortgage loans to
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On June 8, 2007, New Century Financial warned that its effort to liquidate assets could be stymied if
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In early March, it reported that it had failed to meet certain financial requirements of its lenders.
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28:
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marketing and technology firm focused on bringing people, resources, and information together.
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its (wholesale/warehouse) lines of credit as early as the end of the third quarter, 2006.
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1016:| U.S. SECURITIES AND EXCHANGE COMMISSION| Litigation Release No. 21609 | July 30, 2010
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235:'s Office for the Central District of California as well as a letter from the
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In 2004 it converted to a real estate investment trust and was listed on the
990:"SEC sues 3 former officers of Irvine subprime lender New Century Financial"
960:"Final Report of Michael J. Missal, Bankruptcy Court Examiner (see page 19)"
284:
179:
CEO. Frederic J. Forster, a lead independent director, served as chairman.
17:
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spokesman for several years. It also entered into a sponsorship deal with
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with helping the company conceal the problems during 2005 and 2006.
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The New Century brand as of 2008 was being positioned for sale.
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1014:
SEC SETTLES WITH FORMER OFFICERS OF SUBPRIME LENDER NEW CENTURY
365:, and realize the collapse of the market has begun in earnest.
931:"Final Report of Michael J. Missal, Bankruptcy Court Examiner"
795:"N.H. blocks loans from subprime lender New Century Financial"
362:
171:, as the Official Mortgage Company of NASCAR and sponsor the
736:"DOBI issues cease and desist order against mortgage lender"
906:"New Century: Computer seizure would imperil liquidation"
548:
New Century ex-leaders to pay $ 90 million in settlements
262:
or act as the primary servicer of mortgage loans for the
159:
company, New Century's Home123 Mortgage division engaged
27:"New Century" redirects here. For the bible version, see
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Companies formerly listed on the New York Stock Exchange
740:
State of New Jersey Department of Banking & Finance
228:, where its stock traded at $ 0.10 per share in 2007.
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Companies that filed for Chapter 11 bankruptcy in 2007
625:"NEW: Income Statement for New Century Financial Corp"
838:
Department of Corporations of the State of California
688:"New Century Lenders Cut Off Financing; Stock Halted"
892:
http://biz.yahoo.com/rb/070524/newcentury.html?.v=3
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1033:Real estate investment trusts of the United States
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302:Chapter 11. That would enable the firm, a unit of
1048:Financial services companies of the United States
1038:Financial services companies established in 1995
652:"Company Overview of New Century Financial Corp"
601:
599:
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187:Loans began to slow in the second half of 2006.
813:"New Century gets more cease and desist orders"
707:"New Century stops accepting loan applications"
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562:
560:
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447:"The Rise And Demise Of New Century Financial"
402:
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880:http://biz.yahoo.com/e/070525/newc.pk8-k.html
855:"New Century files for Chapter 11 bankruptcy"
759:"Barclays demands New Century buy back loans"
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607:"New Century files for Chapter 11 bankruptcy"
570:"New Century files for Chapter 11 bankruptcy"
550:| E. Scott Reckard |LA Times | July 31, 2010.
408:"NEW: Profile for New Century Financial Corp"
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243:On March 14, 2007, it was reported that
175:team, in both the Cup and Busch series.
730:
728:
396:
380:2007 subprime mortgage financial crisis
988:Reckard, E. Scott (December 8, 2009).
173:Chip Ganassi Racing with Felix Sabates
7:
484:"Home Lender Is Seeking Bankruptcy"
237:Securities and Exchange Commission
25:
781:Connecticut Department of Banking
94:New Century Financial Corporation
904:LOVLEY, ERIKA (June 11, 2007).
274:On April 2, 2007, it filed for
264:government sponsored enterprise
111:in issuing subprime mortgages.
1:
375:United States housing bubble
98:real estate investment trust
512:"Financial Crisis Timeline"
1079:
26:
1058:Subprime mortgage lenders
1063:Subprime mortgage crisis
347:and William J. Popejoy.
317:Lawsuits and settlements
221:New York Stock Exchange
219:On March 12, 2007, the
140:New York Stock Exchange
127:Founding of the company
910:Orange County Register
336:On July 31, 2010, the
183:Financial difficulties
385:Countrywide Financial
224:the over the counter
969:. February 29, 2008
940:. February 29, 2008
75:Number of employees
36:
29:New Century Version
967:The New York Times
938:The New York Times
831:"Cease and Desist"
489:The New York Times
351:In popular culture
133:Irvine, California
61:Irvine, California
994:Los Angeles Times
840:. March 16, 2007.
819:. March 19, 2007.
801:. March 14, 2007.
783:. March 14, 2007.
765:. March 14, 2007.
742:. March 14, 2007.
694:. March 12, 2007.
451:February 26, 2009
339:Los Angeles Times
289:Greenwich Capital
91:
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79:7,200 (2007)
16:(Redirected from
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613:. April 3, 2007.
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100:that originated
51:Bankrupt in 2007
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997:. Retrieved
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522:November 29,
520:. Retrieved
516:the original
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109:HSBC Finance
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56:Headquarters
973:January 20,
944:January 20,
861:. CNN Money
226:pink sheets
165:advertising
144:Fiscal year
35:New Century
18:New Century
1027:Categories
915:6 February
865:6 February
799:Boston.com
717:6 February
637:2007-01-02
457:5 February
420:2007-01-02
391:References
299:GE Capital
276:Chapter 11
270:Bankruptcy
260:Fannie Mae
148:net income
116:Chapter 11
894:dead link
882:dead link
661:March 20,
656:Bloomberg
580:March 20,
496:March 20,
287:Inc. and
285:CIT Group
146:2005 its
817:L.A. Biz
369:See also
245:Barclays
161:Bob Vila
87:ncen.com
999:May 20,
763:Reuters
574:Reuters
122:History
84:Website
633:. 2007
416:. 2007
169:NASCAR
163:as an
96:was a
963:(PDF)
934:(PDF)
834:(PDF)
40:Genre
1001:2010
975:2014
946:2014
917:2014
867:2014
719:2014
692:CNBC
663:2018
582:2018
524:2018
498:2018
459:2014
324:KPMG
216:so.
195:KPMG
48:Fate
611:CNN
363:CNN
355:In
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