Trading Halted In New Century Stock

The New York Stock Exchange on Tuesday halted trading in the common and preferred stock of ailing subprime giant, New Century Financial Corp., Irvine, Calif. Investment banking sources told MortgageWire that they expect the lender to file for bankruptcy protection shortly. The non-depository REIT is the subject of a criminal probe into its accounting and recently disclosed that the Securities and Exchange Commission is now investigating the company. Late last week most of its warehouse lenders stopped financing the company. It has $40 billion in servicing rights on its books.