Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation, operating through subsidiaries like New Century Financial Services, Inc., grew to become a leading originator of subprime mortgages. The company's business model focused on providing home loans to borrowers with less-than-perfect credit histories. These loans were then packaged into mortgage-backed securities and sold to investors on Wall Street. At its peak in 2006, the company employed over 7,000 people and originated nearly $60 billion in mortgages. However, its aggressive lending practices, coupled with a downturn in the U.S. housing market, led to soaring default rates. The company's subsequent collapse in 2007 is widely considered a major catalyst for the subprime mortgage crisis and the global financial crisis of 2008.

Founded in

United States