89 Account Managers from New Century Mortgage submitted salaries.
Former CEO: Brad Morrice
Status: Bankrupt since April 2007
New Century Mortgage, a subsidiary of New Century Financial Corporation, was established by three former Option One Mortgage managers in 1995. The company operated as a real estate investment trust that pioneered mortgage loans in the US through Home 123 Corporation and New Century Mortgage Corporation, its operating subsidiaries. During that time, there were numerous New Century careers available for qualified individuals. New Century was actually on the list of Fortune Magazine’s Fortune’s 100 Fastest Growing Companies in 2003, ranking twelfth.
In 2005, New Century was included in the Wall Street Journal Top Guns, ranking third. In the following year, 2006, it ranked number two in subprime mortgage origination volume nationwide. The company had achieved much in a very short span of time. Back then, the New Century culture was rich and known to all, attracting many job-seekers aiming for various positions.
New Century Mortgage benefits had a wide-range of coverage from health to generous compensation for employees. As the popularity of the company heightened, legal issues came out one after another.
In March 8, 2007, the company stopped new applications for loans along with the announcement of marginal calls of $150 million to its lenders. Days after, on March 12, shares lost 90 percent of their value. The $1.5 billion market capitalization had also been wiped out. NYSE then stopped all trading in New Century Mortgage, stating that they had not yet made a decision as to whether or not to include the the company''s securities while they were facing liquidity problems. There were almost 7,200 full-time employees working at New Century, a few months before it filed for bankruptcy on April 2, 2007. More than half of their employees were laid off.
The legal suits continued until December 7, 2009 when the three executives of New Century Mortgage were sued by federal regulators. They were accused of misleading investors about the prospects of the company. On July 31, 2010, a settlement had been decided between the three executives, the directors of the company and the SEC. The settlement stated that they can’t serve as directors of any public companies for five years. The three officers were levied with fines and profit-disgorgement.
According to expert analysts, there were several causes of the downfall of New Century Mortgage. This includes early defaults, the company’s utilization of leverage and the lack of funds. Further investigations revealed that New Century Mortgage did not have adequate fraud prevention systems and credit underwriting standards. Brad Morrice, David N. Kenneally and Patti M. Dodge were the corporate officers involved.
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