New Century Financial Corp., Irvine, Calif., disclosed late March 2 that it is the focus of a criminal probe by the U.S. attorney's office in central California regarding trading in the company's securities and errors tied to its accounting for loan repurchases.In trading Monday morning, its share price was down 60% to just over $6. (Its 52-week high is $51.97.) In a filing with the Securities and Exchange Commission, the nation's second-largest subprime funder said it expects to violate certain warehouse lending covenants stipulating that it must earn a profit for a minimum of two consecutive quarters. New Century notes that lenders on six of its 11 warehouse agreements have executed waivers. The company says it currently has $13 billion in committed lending facilities and $4.4 billion in uncommitted borrowing capacity. Over the past six months, company insiders have sold 796,445 shares while buying none, according to Thomson Financial. New Century recently cut 300 jobs, or about 4% of its work force, including 124 positions in Orange County.
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The national delinquency rate rose 15 basis points to 3.5% last month due to a calendar anomaly, marking a 4.5% month-over-month incline and 9.4% annual change.
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ICE launched a fraud detection tool for underwriters, Newrez partnered with Matic and Rate announced a free home equity monitoring tool this month.
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Nearly one-third of states now have official nonbank standards for liquidity, capital and corporate governance that firms over a certain threshold must meet.
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KBW now rates UWM as outperform, and BTIG calls the stock a buy, but both cite high leverage levels and industry macro trends depressing its stock price.
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If approved, the deal can provide relief for the approximately 662,000 individuals affected by an incident at the mortgage vendor last November.
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Properties outside of the 100-year flood zone exposed to $375 billion to $1 trillion in losses, Moodys reports
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