New Century Adopts New Best Practices

New Century Financial Corp., Irvine, Calif., has announced the adoption of new disclosure and underwriting best practices, among others, by its operating subsidiaries, New Century Mortgage Corp. and Home123 Corp.The changes also consist of enhancements to controls and product design, New Century said. Among the newly adopted practices are the tightening of underwriting guidelines for adjustable-rate mortgage programs for at-risk borrowers and the use of plain-language disclosures that go beyond legal requirements, the company said. It is also offering qualified existing customers with ARMs or interest-only mortgages the option of refinancing into a low-fee 30- or 40-year fixed-rate mortgage. "In light of recent regulatory guidance and the changing interest rate environment, we have re-evaluated our programs and practices and developed enhanced policies and techniques to reinforce our goal of providing fair and informed access to credit," said Brad Morrice, president and chief executive officer of New Century. The company can be found online at http://www.ncen.com.