By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2007-011

FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST


In the Matter of
NEW CENTURY MORTGAGE CORPORATION
Irvine, California
Mortgage Lender License No(s). ML3136 et al.

and its affiliates,
HOME123 CORPORATION
Irvine, California
Mortgage Lender and Mortgage Broker License No(s). MC1485 et al.

and

NEW CENTURY CREDIT CORPORATION
Irvine, California
Mortgage Lender License No. ML1735


The Commissioner of Banks ("Commissioner") having determined that (a) NEW CENTURY MORTGAGE CORPORATION ("New Century Mortgage" or the "Corporation"), located at 350 Commerce Street, Suite 100, Irvine, California 92602; (b) HOME123 CORPORATION ("Home123"), located at 350 Commerce Street, Suite 100, Irvine, California 92602; and (c) NEW CENTURY CREDIT CORPORATION ("New Century Credit"), located at 3351 Michelson Drive, Suite 400, Irvine, California 92612, have engaged in, or are engaging in, or are about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E and applicable regulations found at 209 CMR 42.00 et seq., hereby issues the following FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST ("Temporary Order") pursuant to General Laws chapter 255E, section 7(b).

FINDINGS OF FACT

  1. The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2.
  1. The Parties

    New Century Mortgage Corporation

  1. New Century Mortgage is licensed by the Commissioner as a mortgage lender under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage lender license to New Century Mortgage to engage in the business of a mortgage lender in Massachusetts on or about January 6, 1998.
  2. New Century Mortgage is, and at all relevant times has been, a corporation conducting business in the Commonwealth of Massachusetts. New Century Mortgage's main office is located at 350 Commerce Street, Suite 100, Irvine, California 92602.
  3. New Century Mortgage maintains additional office locations from which the Corporation conducts the mortgage lender business. According to records maintained on file with the Division, New Century Mortgage currently possesses thirty-one (31) additional mortgage lender licenses from the Commissioner for locations operated both in Massachusetts as well as outside the Commonwealth.
  4. New Century Mortgage is a wholly owned subsidiary of New Century Financial Corporation. New Century Financial Corporation is a publicly traded real estate investment trust listed on the New York Stock Exchange.

    Home123 Corporation

  5. Home123 is licensed by the Commissioner as a mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued mortgage lender and mortgage broker licenses to Home123 to engage in the business of a mortgage lender and mortgage broker in Massachusetts on or about September 21, 2000.
  6. Home123 is, and at all relevant times has been, a corporation conducting business in the Commonwealth of Massachusetts. Home123's main office is located at 350 Commerce Street, Suite 100, Irvine, California 92602
  7. Home123 maintains additional office locations from which the corporation conducts the mortgage lender and mortgage broker business. According to records maintained on file with the Division, Home123 currently possesses twenty-five (25) additional mortgage lender and mortgage broker licenses from the Commissioner for locations operated both in Massachusetts as well as outside the Commonwealth.
  8. Home123 Corporation is also a wholly owned subsidiary of New Century Financial Corporation and an affiliate of New Century Mortgage.

    New Century Credit Corporation

  9. New Century Credit is licensed by the Commissioner as a mortgage lender under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage lender license to New Century Credit to engage in the business of a mortgage lender in Massachusetts on or about January 19, 2001.
  10. New Century Credit is, and at all relevant times has been, a corporation conducting business in the Commonwealth of Massachusetts. New Century Credit's main office is located at 3351 Michelson Drive, Suite 400, Irvine, California 92612.
  11. New Century Credit is also a wholly owned subsidiary of New Century Financial Corporation and an affiliate of New Century Mortgage and Home123.
  12. New Century Mortgage, Home123, and New Century Credit are operated, in part, by certain common individuals who perform in the capacity of executive officers, and as members of the Board of Directors, of the three corporations.
  1. Uncertainty of New Century Mortgage's Maintenance of the Minimum Financial Requirements for Holding a Mortgage Lender License in Massachusetts and Failure to Provide Certain Requested Information
  1. On February 7, 2007, the Division became aware, through an article appearing on the financial website www.Bloomberg.com, of New Century Mortgage's intention to report a loss for the fourth quarter of 2006. The published article also reported that the Corporation would be restating earnings, for the second, third, and fourth quarters of 2006.
  2. On February 9, 2007, the Division became aware, through an article appearing on the financial website www.yahoo.finance.com, of a decline in New Century Financial Corporation's stock price from $30.16 per share to $19.24 per share between the period of February 7, 2007 and February 8, 2007.
  3. By February 26, 2007, New Century Financial Corporation's stock price had dropped to $15.24 per share at the close of trading.
  4. On or about February 28, 2007, due, in part, to the concerns raised by the publicly reported facts stated in Paragraphs 14 through 16, the Division contacted an executive officer of New Century Mortgage to request information on the current condition of the Corporation. The requested information included, but was not limited to, the following: a "pipeline report," so-called, of then-pending residential mortgage loan applications relating to Massachusetts properties; a summary of the conditions under which New Century Mortgage had been required to repurchase the substantial loan portfolio from its investors which resulted in the Corporation's undertaking of restating earnings for the last three quarters of 2006; the status of the Corporation's warehouse lending agreements; and the balances outstanding on the lines of credit.
  5. New Century Mortgage notified the Division that it would attempt to produce the requested information within the next several business days.
  6. Additional information discussed between the Division and New Century Mortgage on February 28, 2007, included the Division's request from the Corporation for an explanation of when New Century Mortgage reasonably expected, after adjusting quarterly statements from 2006, to have a December 31, 2006 balance sheet and income statement available for review by the Division.
  7. New Century Mortgage indicated financial statements for the period ending December 31, 2006, which continued to be prepared by an independent auditing firm, would likely be available on March 5 th or on March 15 th of 2007.
  8. On March 5, 2007, the Division became aware, through information reported on www.Bloomberg.com, that New Century Financial Corporation's stock had decreased by as much as an additional 63% over the course of the prior seven days to $5.41 per share and had been trading as low as $5.25.
  9. On March 5, 2007, the Division once again contacted New Century Mortgage to request an update on the anticipated availability of the Corporation's financial statements for the period ending December 31, 2006. New Century Mortgage notified the Division that the Corporation would be unable to provide the requested financial statements on March 5, 2007, and further, that the Corporation was no longer able to represent that such statements would be available on the alternate date of March 15, 2007.
  10. At the end of the business day on March 5, 2007, New Century Financial Corporation's stock price had closed at $4.56 per share, which represented a deterioration in the stock price of approximately 69% from the level at which the stock had traded at on February 26, 2007.
  11. As of March 12, 2007, New Century Financial Corporation's stock price was traded at $1.66 per share, which represented a deterioration in the stock price of an additional 64% over the course of the prior seven days and a total of 89% from the level at which the stock had traded at on February 26, 2007.
  12. On March 12, 2007, the New York Stock Exchange suspended trading of New Century Financial Corporation shares.
  13. As of the date of this Temporary Order, New Century Mortgage has responded, in part, to the information referenced in Paragraph 17, but has failed to provide financial statements for the period ending December 31, 2006 or, alternatively, to identify a date on which such financial statements would be available to the Division.
  14. The Division's regulation 209 CMR 42.12(1)(k) states in part:
    1. A Licensee shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments…(k)Any change to net worth resulting from market valuation or future loss liability or any other change which causes the net worth of the licensee to fall below the requirements of 209 CMR 42.03 and 209 CMR 42.11A(1)(a).
  15. As a result of all of the foregoing, the Division is unable to measure the extent to which the recent market devaluations or substantial repurchase obligations have impacted the Corporation or to determine whether New Century Mortgage has maintained the minimum net worth requirement for mortgage lenders as set forth under the Division's regulation 209 CMR 42.03 and 209 CMR 42.11A(1)(a).
  16. Due to the Corporation's uncertainty regarding when the requested financial statements will become available, a determination of when the Division would be able to evaluate the financial condition of the Corporation likewise remains uncertain.
  1. Failure to Fund Certain Residential Mortgage Loan Obligations in Massachusetts
  1. On Wednesday, March 7, 2007, the Division received information from two licensed Massachusetts mortgage brokers, ("Mortgage Brokers") indicating that New Century Mortgage had failed to timely disburse loan proceeds in mortgage loan transactions involving residential property in Massachusetts.
  2. The Mortgage Brokers notified the Division that the refinance loans they had brokered through New Century Mortgage, had closed on Thursday, March 1, 2007 and were scheduled to fund at the conclusion of the rescission period on Tuesday March 6, 2007, however neither loan was funded on that date.
  3. One of the Mortgage Brokers was reportedly advised by a New Century Mortgage representative that the "earliest his loan would fund would be Monday, March 12, 2007," four business days after the original funding date.
  4. The second Mortgage Broker, however, was advised by another New Century Mortgage representative that the "earliest his loan would fund would be Friday, March 9, 2007, if at all."
  5. Based upon information available to the Division, as of the effective date of this Temporary Order, one of the loans referenced in Paragraph 30 remains unfunded.
  6. On March 8, 2007, New Century Financial Corporation filed a Form 8K with the Securities and Exchange Commission which disclosed that during the period beginning on March 2, 2007, "The Company has only been able to fund a portion of its loans this week. In addition its capacity to fund new originations is substantially limited due to its lenders restrictions or refusals to allow the Company to access their financing agreements."
  7. On March 13, 2007, New Century Mortgage reported to the Division that as of such date, the Corporation had as many as thirty-two residential mortgage loans in Massachusetts that New Century had closed, but to date, had failed to fund.
  1. Impairment of Lender Lines of Credit Used to Fund New Century Mortgage's Lending Operations
  1. On or about March 5, 2007, the Division became aware, through an article appearing on the financial website www.Bloomberg.com, that due to the Corporation's failure to file timely its 2006 annual report by March 1, 2007, the Corporation had been required to obtain waivers from each of its lenders to maintain access to its lines of credit with those lenders. The article further reported that all eleven of New Century Mortgage's lines of credits remain in jeopardy of being suspended by the respective lenders in the event that New Century Mortgage is unable to file its annual report by March 15, 2007.
  2. Further, because the Corporation will be reporting a net loss for 2006 upon the completion of the restated 2006 reports, New Century Mortgage will be required to obtain a separate waiver from each the lenders providing the lines of credit. As of the end of the business day on March 5, 2007, the Division became aware via the above referenced media articles, that the corporation had received only six of the required eleven waivers on the lines of credit.
  3. Division representatives, in an interview with an executive officer of New Century held on March 5, 2007, confirmed the information reported in Paragraphs 37 and 38.
  4. A line of credit used by a mortgage lender enables the entity to fund mortgage loans prior to selling them to an investor. Without access to its lines of credit, and in the absence of the mortgage lender independently maintaining sufficient reserves and liquidity positions within the institution to fund such loans, the mortgage lender would be unable to meet its funding commitments, negating its ability to meet contractual obligations to fund mortgage loans.
  5. The Division's regulation at 209 CMR 42.12(1)(e) states, in part:
    1. A Licensee shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments: . . . (e) Expiration, termination or default, technical or otherwise, of any existing line of credit or warehouse credit agreement.
  6. Prior to being contacted by representatives of the Division on March 2, 2007, New Century Mortgage had not notified the Division of the Corporation's failure to file its annual report by March 1, 2007 as required by its lenders, the results thereof, or of any suspension, default, and/or termination of the Corporation's line(s) of credit.
  7. Public comments made by representatives of New Century Financial Corporation have indicated that New Century Financial Corporation has received notices from its lenders of repurchase obligations totaling as much as $8.4 billion, which, if New Century Financial Corporation were unable to obtain relief from such lenders, New Century Financial Corporation would fail to meet these obligations due to its reduced funding capacity.
  8. The Division's regulation at 209 CMR 42.12(1)(g) states, in part, that:

    A Licensee shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments: . . . (g) Exercise of recourse rights by investors or subsequent assignees of mortgage loans if such loans, in the aggregate, exceed the licensee's net worth exclusive of real property and fixed assets.

  9. New Century Financial Corporation further reported in the Form 8K which was filed by on March 8, 2007, that New Century Financial Corporation had received, "an aggregate of approximately $150 million of margin calls, approximately $80 million of which has been satisfied. The Company has approximately $70 million in outstanding margin calls from five lenders."
  10. Based upon information and belief, the reduced funding facilities available to the Corporation are preventing New Century Mortgage from honoring its margin calls which remain outstanding.

    CONCLUSIONS OF LAW

  11. Based upon the information contained in Paragraphs 1 through 46, New Century Mortgage failed to notify the Commissioner within one business day of the expiration, termination or default, technical or otherwise, of at least one existing line of credit or warehouse credit agreement, in violation of 209 CMR 42.12(1)(e).
  12. Based upon the information contained in Paragraphs 1 through 46, New Century Mortgage's acts or practices of contracting with consumers for a purchase, or refinance, mortgage loan through the underwriting and subsequent execution of mortgage loan closing documents relating to Massachusetts residential property, and thereafter failing to fund the mortgage loan, may constitute unfair and/or deceptive acts or practices in violation of Massachusetts General Laws chapter 93A, section 2.
  13. Based upon the information contained in Paragraphs 1 through 46, by delaying in funding contractual mortgage loan obligations, New Century Mortgage has harmed consumers, mortgage brokers, and other parties in residential mortgage loan transactions in the Commonwealth by engaging in acts or practices which may be unfair and/or deceptive in violation of Massachusetts General Laws chapter 93A, section 2.
  14. Based upon the information contained in Paragraphs 1 through 46, New Century Mortgage is unable to demonstrate that the corporation is maintaining the minimum net worth requirements for mortgage lenders in violation of the Division regulation 209 CMR 42.03 and 209 CMR 42.11A(1).
  15. Based upon the information contained in Paragraphs 1 through 46, New Century Mortgage has failed to demonstrate the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.03(2)(c).
  16. Based upon the information contained in Paragraphs 1 through 46, due to the interlocking relationship of the officers, directors, and principals of New Century Mortgage and Home123 as more fully set forth in Paragraph 13, the Division is unable to conclude that Home123 has demonstrated the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.03(2)(c) and 209 CMR 42.06(2)(c).
  17. Based upon the information contained in Paragraphs 1 through 46, due to the interlocking relationship of the officers, directors, and principals of New Century Mortgage and New Century Credit as more fully set forth in Paragraph 13, the Division is unable to conclude that New Century Credit has demonstrated the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.03(2)(c) and 209 CMR 42.06(2)(c).
  18. Based upon the information contained in Paragraphs 1 through 46, the Commissioner has determined that:
    1. New Century Mortgage, Home123, and New Century Credit have engaged in, are engaging in, or are about to engage in, acts or practices which warrant the belief that they are not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a mortgage lender and mortgage broker including, but not limited to, the provisions of the Division's regulations at 209 CMR 42.00 et seq.; and
    2. The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to New Century Mortgage, Home123, New Century Credit.
  19. Based upon the information contained in Paragraphs 1 through 46, had the facts and conditions found therein existed at the time of New Century Mortgage's, Home123's, or New Century Credit's original mortgage lender and mortgage broker license application, the Commissioner would have been warranted in refusing to issue such license(s) to the respective entity. Further, the facts and conditions set forth in paragraphs 1 through 46 present sufficient grounds for the revocation of New Century Mortgage's, Home123's, and New Century Credit's lender and/or broker licenses pursuant to Massachusetts General Laws chapter 255E, section 6 and the Division's regulation at 209 CMR 42.04(2)(b).

    ORDER TO CEASE AND DESIST

    After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:

  20. ORDERED that New Century Mortgage, Home123, New Century Credit, and any and all officers, directors, employees, independent contractors, or agents operating on behalf of such corporation, and their successors or assigns, shall immediately cease engaging in the activities of a mortgage lender and mortgage broker, as defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this Temporary Order. Therefore, New Century Mortgage, Home123, and New Century Credit are ordered to immediately cease soliciting or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.
  21. IT IS FURTHER ORDERED that New Century Mortgage, Home123, and New Century Credit shall immediately place any fees previously collected from Massachusetts consumers relative to any pending mortgage loan applications in a separate escrow account maintained at a federally insured bank.
  22. IT IS FURTHER ORDERED that New Century Mortgage, Home123, and New Century Credit shall immediately place with one or more qualified broker(s) or lender(s), as appropriate based on the status of the application and with no loss to applicants, the following: (a) New Century Mortgage's, Home123's, and New Century Credit's entire portfolio of Massachusetts residential mortgage loans which were closed by the corporation, and remain unfunded as of the issuance of this Temporary Order; and (b) the corporations' entire pending application lists of Massachusetts residential mortgage loans. It being understood that "no loss to the applicant" shall mean that any loan which may have been closed by New Century Mortgage, Home123, or New Century Credit and remains unfunded, as well as any pending application which has been approved by the corporation but has not yet closed, shall be placed to a lender willing to fund, or close, the mortgage loan under the same terms and conditions extended by New Century Mortgage,Home123, or New Century Credit. In the event that no such placement can be made, New Century Mortgage, Home123, or New Century Credit shall either independently fund the mortgage loan under such terms and conditions or buy down the mortgage loan offered by the lender so that the applicant does not incur a loss as a result of such placement. New Century Mortgage, Home123, and New Century Credit shall obtain the prior approval of the Commissioner before placing such applications to the qualified lender(s) or broker(s) as appropriate.
  23. IT IS FURTHER ORDERED that by 5:00 p.m. eastern standard time on each business day following the effective date of this Temporary Order, the Corporation shall submit to the Division a liquidity report on each of its eleven warehouse lines of credit, and provide such information as will be necessary by the Division to determine that the corporation will be able to fund current loans in its pipeline, while also maintaining the minimum net worth requirements for licensed mortgage lenders in accordance with the Division's regulations.
  24. IT IS FURTHER ORDERED that in any instance in which New Century Mortgage, Home123, or New Century Credit failed to fund a loan closed by the corporation and in which the consumer obtained funding through an alternate lender prior to the effective date of this Temporary Order, the defaulting corporation shall reimburse each consumer the amount necessary to put the consumer in the same position as if the corporation had funded the mortgage loan under the terms and conditions agreed upon at the closing of the loan.
  25. IT IS FURTHER ORDERED that New Century Mortgage, Home123, and New Century Credit shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all of the corporation's pending residential mortgage loan applications on property located in Massachusetts. The records to be produced shall include all information on file regarding the corporation's Massachusetts mortgage loan portfolio, including but not necessarily limited to, the following:
    1. As soon as possible, but not later than one (1) day after the effective date of this Temporary Order, New Century Mortgage, Home123, and New Century Credit shall submit to the Commissioner all information on file as of the date of submission regarding the corporation's portfolio of mortgage loans that were closed by the corporation prior to the effective date of this Temporary Order, but remain as yet unfunded. Such information shall include, but is not limited to, the following: the names of all individuals for whom New Century Mortgage, Home123, or New Century Credit processed an application and closed the residential mortgage loan, but failed to fund; the applicants' addresses and telephone numbers; the loan number; the amount of all prepaid loan fees submitted by the customer; the amount of each loan; the loan terms; the current funding status; the actual closing dates; the name of the mortgage broker who originated the loan; the loan purpose (i.e. purchase or refinance); and identification of the applicable lender with whom each application will be placed. The record should include telephone numbers of contact persons at each lender or broker who is familiar with the corporation's submitted loans;
    2. As soon as possible, but not later than one (1) day after the effective date of this Temporary Order, New Century Mortgage, Home123, and New Century Credit shall submit to the Commissioner all information on file as of the date of submission regarding the corporation's pipeline of pending mortgage loan applications including but not limited to, the following: the names of all individuals from whom New Century Mortgage, Home123, or New Century Credit has accepted an application for a residential mortgage loan; the applicants' addresses and telephone numbers; the loan number; the amount of all prepaid loan fees submitted by the customer; rate lock status; the amount of each loan; application status (i.e. filed, submitted to lenders, cleared to close, etc.); loan terms, if approved; scheduled closing dates; the loan purpose (i.e. purchase or refinance); and identification of the applicable lender with whom each application will be placed. The record should include telephone numbers of contact persons at each lender or broker who is familiar with the corporation's submitted loans;
    3. On each business day, by 5:00 p.m. Eastern Standard Time after the effective date of this Temporary Order, New Century Mortgage, Home123, and New Century Credit shall provide the Commissioner with an updated, written status report of the mortgage loan applications identified above under subparagraphs 61(a) and 61(b). The form of the status report shall follow the format of the initial submission under subparagraphs 61(a) and 61(b) and shall indicate the final disposition of the loan application and include the final terms under which each approved loan is closed. The reporting requirement shall continue until each of the approved applications is funded by New Century Mortgage, Home123, or New Century Credit or withdrawn by the applicant(s); and
    4. As soon as possible, but not later than two (2) days after the effective date of this Temporary Order, New Century Mortgage, Home123, and New Century Credit shall submit to the Commissioner a balance sheet and year-to-date income statement, prepared as of the date of submission, and attested to by a duly authorized officer of the corporation. The balance sheet should indicate bank account numbers as well as the corporation's cash position at each of its depository banks.
  26. IT IS FURTHER ORDERED that New Century Mortgage, Home123, and New Century Credit shall immediately secure all pending mortgage loan application files and, to the extent that any original documents must be forwarded to the relevant mortgage lender or mortgage broker pursuant to Paragraph 58 of this Temporary Order, a copy of such document, correspondence, or paper relating to the mortgage loan shall be retained in the corporation's books and records, and shall be available to the Commissioner, in their entirety, immediately upon request on the date and time specified by the Commissioner.
  27. IT IS FURTHER ORDERED that New Century Mortgage, Home123, and New Century Credit shall not pay or declare any dividend or bonus, nor otherwise authorize any other material distribution of the corporation's assets to any officer, director, or owner of the corporation without the prior written approval of the Commissioner. Upon the effective date of this Temporary Order, New Century Mortgage, Home123, and New Century Credit shall implement or revise its practices and procedures, as necessary, to ensure that the corporation's financial books and records are accurately maintained, in a manner illustrating compliance with the provisions of this Paragraph, and available for review by the Division's examiners upon request.
  28. IT IS FURTHER ORDERED that this Temporary Order shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under Massachusetts General Laws chapter 30A.
  29. IT IS FURTHER ORDERED that a hearing will be scheduled on this matter to determine whether or not such Temporary Order shall become permanent and final only upon receipt of a written request for such a hearing from New Century Mortgage, Home123, and/or New Century Credit within twenty (20) days of the effective date of this Temporary Order. If no hearing is requested within this twenty (20) day period, this Temporary Order shall become permanent and final until it is modified or vacated by the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 13th day of March, 2007.

By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts