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N.H. blocks loans from subprime lender New Century Financial

CONCORD, N.H. --New Hampshire's Banking Department has ordered a mortgage lender that offer loans to people with weak credit to stop making new loans.

Banking Commissioner Peter Hildreth said the department ordered New Century Financial Corporation to stop taking applications for new loans Tuesday because the subprime lender failed to inform the agency about its financial problems.

The move came as the New York Stock Exchange took steps to delist shares of New Century, after the company said the Securities and Exchange Commission would be investigating accounting errors that inflated its loan portfolio.

State regulators also said the company has so far failed to fund four mortgages after closing on them. New Century has 30 days to respond and argue that its license should not be revoked.

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Information from: New Hampshire Union Leader, http://www.unionleader.com

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