Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation grew to become one of the largest subprime mortgage lenders in the United States. The company's business model focused on originating and securitizing mortgages for borrowers with less-than-perfect credit histories. At its peak, it was the second-largest subprime lender in the country. However, as the housing market cooled and defaults on these high-risk loans surged, the company faced a severe liquidity crisis. In early 2007, it announced it would stop accepting new loan applications, which led to its stock being delisted from the NYSE and a subsequent bankruptcy filing. The collapse of New Century is widely considered a major catalyst and early indicator of the 2007-2008 subprime mortgage crisis.

Founded in

United States