Monday, September 26, 2005

New Century Financial Conference Call

New Century Financial, which is a mortgage REIT and the second largest sub-prime lender after Ameriquest, held a conference call on Friday the 23rd following its announcement that results for the year would be weaker than originally expected. The company’s main business involves underwriting or originating residential mortgages and then selling them into the secondary mortgage market. The company enjoyed high origination volumes in the month of August and it looked like the third quarter would be relatively solid. However, the company said that prices for mortgages fell substantially in the secondary market in September, and as a result, its margins are expected to contract in the fourth quarter to between 30 and 50 basis points from earlier estimates of between 80 and 100 basis points. In other words, the price that New Century is able to sell mortgages at declined in the past few weeks. In turn, the company said that the lower prices reflect concerns by mortgage buyers (Asset Backed Bond Funds) that 1.) too much supply already exists. 2.) the quality of the newer mortgages might be less than ideal.

In order to try to improve its margins, New Century is going to increase the rate it charges borrowers. The company beleives that this could reduce loan volumes by 30% from the record high levels of August. For the housing market, this is not a good sign if you are a bull as the higher interest rates will undoubtedly cause prospective home buyers to reduce their bids to what is affordable.




A replay of the call will be available until this Friday. The replay number is (888) 286-8010 or (617) 801-6888 and the passcode is 13365441.

14 Comments:

Blogger heropoo said...

Cool blog you have going here, I will check in often! I have a similar site about auto loan rate. It pretty much covers auto loan rate related stuff.

Friday, October 07, 2005 3:49:00 PM  
Anonymous Anonymous said...

So this is where all the suntrust mortgage information is, I thought I did a good job on my site, but I am humbled. Maybe someone can take a look at my site at suntrust mortgage and tell me where I can improve.
Very nice site!!

Sunday, October 09, 2005 8:07:00 PM  
Anonymous Anonymous said...

Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a real estate appraiser site/blog. It pretty much covers real estate appraiser related stuff.



Come and check it out if you get time :-)

real estate appraiser Real Estate*

Thursday, October 20, 2005 1:36:00 AM  
Blogger Johnny said...

Hello, just visited your blog, it's geat. I also have a construction loan related blog with some useful articles about the topic. Hope that it is helpful to you.

Thursday, October 20, 2005 12:52:00 PM  
Blogger job opportunitya said...

Exciting blog. The site out did itself and will be
back! I love surfing the internet for blogs that are
exactly like this blog.
Everyday of the month you need to peep my calculator equity home loan payment blog.

Friday, December 09, 2005 8:24:00 AM  
Blogger job opportunitya said...

Creative blog.  I thought it was the best site out
and we had to go back to it! Every chance I get on the
net I search for blogs just like your site.
Once you sign on, check for my equity home in loan texas blog.

Sunday, December 11, 2005 2:20:00 PM  
Blogger Mortgage Center said...

Hi thanks for your blog, I liked it! I also have a blog/site about mortgage calc that covers mortgage calc related stuff. Please feel free to visit.

Friday, December 23, 2005 9:14:00 PM  
Blogger fast cash advance loan7 said...

Fascinating blog. I loved the site you did a good
job on it, I will be back! I surf the net for blog
like this one.
No matter when you are, just stop by and check for my cash advance center blog site.

Saturday, January 21, 2006 1:30:00 PM  
Anonymous Anonymous said...

http://www.365dayz.comOpen365dayz.com is now open. Click http://www.365dayz.com

Sunday, January 22, 2006 12:22:00 AM  
Anonymous hypotheken said...

Hi Blogger! Ik ben op zoek naar hypotheken Zou Afab echt zo goed zijn als iedereen beweert? Of kan ik beter zoiets als Geldshop proberen?

Groetjes Albert

Thursday, January 26, 2006 7:40:00 PM  
Anonymous hypotheken said...

Hi Blogger! Ik ben op zoek naar hypotheken Zou Afab echt zo goed zijn als iedereen beweert? Of kan ik beter zoiets als Geldshop proberen?

Groetjes Albert

Thursday, January 26, 2006 9:28:00 PM  
Anonymous financiering said...

Hi Blogger! Ik ben op zoek naar financiering Zou Afab echt zo goed zijn als iedereen beweert? Of kan ik beter zoiets als Geldshop proberen?

Groetjes Albert

Saturday, January 28, 2006 10:16:00 PM  
Blogger Paul Adams said...

I just came across your blog and wanted to
drop you, Blogger, a note telling you how impressed I was with
the information you have posted here.
If you have a moment, please visit my site:
ppecu
It covers ppecu related contents.
I send you warm regards and wish you continued success.

Monday, January 30, 2006 6:36:00 AM  
Blogger Car Loan Home said...

Hi, Thanks for your interesting blog. Keep up the great work! I also have a site & blog about car loans
, please feel free to visit.

Tuesday, January 31, 2006 8:11:00 AM  

Post a Comment

<< Home