New Century reaches deal with Barclays

first_imgIn turn, New Century gave up its rights to the loans financed by the bank, the filing said. The deal is dependent upon New Century transferring to Barclay an unspecified amount of money relating to the home loans, the filing said. Barclays also has the option to exit the agreement if New Century secures more favorable settlements or agreements with its other lenders. New Century said it would see a loss of about $46 million from the transaction. The company also disclosed that some of its subsidiaries had entered into a consent agreement with regulators in Maine. New Century Financial Corp. said Thursday that it had reached a deal with Barclays Bank PLC that would effectively release the troubled subprime mortgage lender from having to buy back about $900 million in mortgage loans. Britain-based Barclays had demanded last week that Irvine-based New Century comply with an obligation to repurchase outstanding mortgage loans financed by the bank. Barclays had alleged that the company defaulted on its financial obligations. Under the terms of a deal reached March 16, Barclays and Sheffield Receivables Corp. agreed to release New Century and its subsidiaries from the obligation, according to a filing with the Securities and Exchange Commission. As with steps taken by other states, the deal with Maine was intended to keep New Century from accepting new mortgage applications on grounds that it has violated state laws, including failing to fund mortgage loans after closing.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more