As one mortgage lender after another reports falling production, a major subprime player is shattering old records and upping its full year forecast.
New Century Financial Corp. announced that its fundings hit a record $4.9 billion in June, marking a 17% jump from the prior month and the second consecutive month of increased production. This volume stands 135% greater than a year ago.
June's total helped the Irvine, Calif.-based company's second quarter volume to reach a record $12.3 billion, which grew by about 46% compared to the first quarter.
"The considerable increase in our second quarter's production was primarily the result of the quarter's changing rate environment which caused many borrowers who were not protected by rate lock agreements from traditional lenders and their brokers to seek financing from alternative sources," said the company's CEO and chairman Robert K. Cole in the announcement. "This created an opportunity for our company to add an incremental volume of higher FICO score product to our core base of production."
Although New Century reported it does expect lower volume of approximately $10 billion to $12 billion in each of the remaining two quarters of the year, it has raised its 2004 annual production goal by 11% to $40 billion, "reflecting the lower range given the changing interest rate environment."