States After New Century

They want it to cease and desist.
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State regulators are the latest government types to take a look at

New Century Financial


The California-based subprime lender said in a regulatory filing Wednesday that it received "cease and desist" orders in Massachusetts, New Hampshire, New Jersey and New York.

The regulators claim New Century broke state laws by failing "to fund mortgage loans after a mortgage closing" and neglecting "to timely notify the state regulators of defaults and terminations under certain of its financing arrangements."

New Century is already being probed by the Securities and Exchange Commission and the U.S. attorney's office over its accounting for loan losses and trading in its securities. Shares of the lender plunged more than 85% over a week before the New York Stock Exchange yanked its listing Tuesday.

New Century has already stopped making new loans and has said it cannot fund mortgage loans in process. Virtually all of its lenders have pulled financing.

New Century is cooperating with regulators, it said.