New Century Financial was a real-estate investment trust that was the second-biggest subprime mortgage lender in the United States as of the beginning of 2007.
At the company’s height on January 1, 2007 it had $42.2 billion in mortgages and its stock traded on the New York Stock Exchange for $64 per share. New Century’s value at that time was $1.75 billion and it had over 7,000 employees.
However, in the spring of 2007 New Century was caught in a death spiral as a result of losing over half of its financial backers.
The company announced that it would no longer accept loan applications in March of 2007. At the same time the company was delisted from the New York Stock Exchange. In April of 2007 the company filed for bankruptcy with debts of more than $8 billion.
New Century Financial
New Century Financial was a real-estate investment trust that was the second-biggest subprime mortgage lender in the United States as of the beginning of 2007.
At the company’s height on January 1, 2007 it had $42.2 billion in mortgages and its stock traded on the New York Stock Exchange for $64 per share. New Century’s value at that time was $1.75 billion and it had over 7,000 employees.
However, in the spring of 2007 New Century was caught in a death spiral as a result of losing over half of its financial backers.
History
The company announced that it would no longer accept loan applications in March of 2007. At the same time the company was delisted from the New York Stock Exchange. In April of 2007 the company filed for bankruptcy with debts of more than $8 billion.
