Nearly $2.5 billion in loans originated by New Century Financial Corp. subsidiaries are on the auction block.
Morgan Stanley Mortgage Capital Inc. will conduct a public auction of 13,200 loans originated by NC Capital Corp., New Century Mortgage Corp., Home 123 Corp. and New Century Credit Corp., according to an advertisement in the printed edition of today's Wall Street Journal.
The $2.48 billion in loans are being sold as-is, "with no representations or warranties," the ad read.
"After receipt of indicative bids, at least three bidders will be selected to perform due diligence on the mortgage loans and will be allowed to submit final bids," according to the ad. "Each bidder must be a financial institution or other entity that has the financial wherewithal."
Irvine, Calif.-based New Century, a real estate investment trust, announced earlier this month it stopped taking new business and subsequently said all of the lenders under it's short-term repurchase agreements and aggregation credit facilities had discontinued providing financing.
Bids are being accepted until 11 a.m., March 29, by Van Cushney, MSMCI, 1585 Broadway, 2nd Floor, New York, N.Y., 10036, Morgan Stanley wrote. Additional information is available by fax at 212.404.9430.