| Subprime Giant Sets Production Record
$3.0 billion August production at New Century September 8, 2003 By MortgageDaily.com staff |
| Loan production reached new heights at New Century Financial Corporation, where rising rates don’t present much of a concern.
The Irvine, Calif. subprime mortgage lender reported $3.0 billion in August production, about 33% higher than July’s record $2.2 billion. A year ago, New Century said it funded $1.3 billion. “While many lenders in the ‘A’ paper prime market are forecasting a significant drop in production volume due to decreased refinancing activity, we do not expect the same trend to develop in the non-prime mortgage market,” CEO Robert K. Cole said in the announcement. New Century’s president, Brad A. Morrice, recently told MortgageDaily.com that rising rates are not of much concern because subprime borrowers “are turning consumer debt into mortgage debt and that continues to make sense.” CEO Cole added, “over the next few months, I believe that sharp distinctions between the volume trends of prime and non- prime lenders will emerge.” Cole said the company expects to meet or exceed its 2003 production volume target of $22 billion. |
