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Over the past two weeks many states have moved to issue cease-and-desist orders against New Century to stop the beleaguered company from issuing any more loans or taking any more applications. States such as Massachusetts and New Jersey were among the first to act.
Today, California, the company’s home state (headquartered in Irvine, CA) also issued a formal cease-and-desist order for the company and ordered it to turn over any pending applications to rivals. (hat tip: Impode-o-Meter)
This has to mark the end for New Century. More than 35% of its business was originated in the state of California. This order, coupled with the frozen liquidity, federal investigation and talk of bankruptcy makes the chances for survival very slim.
California told New Century to quit taking applications in the state and turn over pending loans to rival lenders, the company said in a federal filing. The state accounted for 37 percent of New Century’s loans in 2005, the most recent year for which data is available. Irvine, California-based New Century said similar orders came from Florida and Washington state.
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