New Century to Sell $2.6B of Loans

New Century Financial Corp., Irvine, Calif., has entered into three forward commitments to sell $2.6 billion of its production.The commitments will provide the company with an exit strategy for its January volume and most of its February originations, New Century said. "By locking in loan sale prices, we mitigate our future interest rate risk and protect our future profit margins, which we expect to favorably influence our overall financial results for the first quarter of 2003," said Kevin Cloyd, president of New Century's secondary marketing unit, NC Capital Corp. NC Capital has also completed a $494 million asset-backed securitization containing five classes of certificates with a face value of $484 million. Credit enhancement was provided through excess spread, over-collateralization, and subordination. New Century can be found online at http://www.ncen.com.