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New Century Returns to the Loan Servicing Business.(New Century Financial Corp.)
There are those that wish they could start over with a clean slate, keeping only the best of what had happened before.
New Century Financial Corp. here had the opportunity to do that with its servicing portfolio. It sold the portfolio in 2001 because of financial reasons.
Approximately one year later, it was able to start the platform up again and built it better and stronger.
Like many other firms in the subprime industry, it suffered from a capital crunch beginning in the fall of 1998.
The sale, said Brad Morrice, vice chairman, president and chief operating officer of New Century, put cash into the company's bank account. Furthermore, transferring the servicing advance obligations relieved a "meaningful debt burden" for the company. He added that New Century was not confident it could obtain financing to help take care of those advancing obligations as they grew.
The sale also allowed New Century to restructure a fairly significant outstanding debt obligation it had to Salomon Brothers that Mr. Morrice described as a "black cloud" over the company. This is because it was structured as 28-day repo debt.
The servicing transaction, where the platform was sold to Ocwen Financial, West Palm Beach, Fla., enabled New Century to have that rewritten to being term debt.
- New Century Returns to the Loan Servicing Business.
- News wire article from: Banking Wire Finkelstein, Brad March 29, 2004 700+ words
...point of view." New Century did the transaction...entering the servicing business when it was financially...part because New Century had outstanding...team. So when New Century was ready to go back into the servicing business "the phones...
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- Press release article from: PR Newswire March 12, 2007 700+ words
...March 12 /PRNewswire/ -- New Century Financial Corp. survived...subprime mortgage yields rose. New Century sold its servicing business and barely survived the 1998...stopped taking new business, New Century might not weather the current...
- New Century MSR Sale Fetches Higher than Expected Price.
- Magazine article from: Mortgage Servicing News July 1, 2007 700+ words
...approval to purchase New Century Financial Corp.'s loan servicing business for $188 million. The...stock prices last week. New Century said the final price...involving several bidders. New Century, Irvine, Calif...
- New Century Deal Puts Fairbanks at $15.8 Billion.
- Magazine article from: Mortgage Servicing News Muolo, Paul March 1, 2001 700+ words
Subprime lender New Century Financial, Irvine, Calif...nation. The agreement takes New Century of Irvine out of the servicing business entirely, although it will...Once it takes control of New Century's Irvine operation, Fairbanks...
- New Century Financial Corporation Completes Purchase of Certain Assets of Irwin...
- Press release article from: PR Newswire January 3, 2007 700+ words
...but are not limited to, New Century's expectation that the transaction...and prime mortgage loans. New Century cautions that these statements...integration of the acquired servicing business into New Century's operations; (ii) the...
- New Century partners with Fiserv. (Business Alert).(Brief Article)
- Magazine article from: Mortgage Banking September 1, 2002 700+ words
...California-based New Century Mortgage Corporation...re-enter the loan servicing business with Fiserv's real...In the past year, New Century has experienced unprecedented...provider would best fit New Century's business model...
- New Century files for bankruptcy, cuts 3,200 jobs.
- Newspaper article from: Orange County Register (Santa Ana, CA) April 3, 2007 700+ words
...Without those funds, New Century would have exhausted...the filing said. New Century also lined up a deal to sell its loan-servicing business to Carrington Capital...seeking to buy some of New Century's loans and interests...
- New Century Mortgage Corporation Selects Fiserv MortgageServ System.
- Press release article from: Business Wire July 8, 2002 700+ words
...loan originators, New Century Mortgage Corporation...owned subsidiary of New Century Financial Corporation...re-enter the loan servicing business with the real-time...In the past year, New Century has experienced unprecedented...
