New Century Financial Corporation (NYSE: NEW), a real estate investment trust (REIT) and parent company of one of the nation's premier mortgage finance companies, today announced second quarter 2006 total loan production of $16.2 billion, representing a 21 percent increase over the same period a year ago.

"June 2006 total loan production of $6.0 billion increased 9 percent compared with May 2006 and brought second quarter total loan production to $16.2 billion," said Brad A. Morrice, Vice Chairman, President and Chief Executive Officer, who transitioned into this new role on July 1, 2006. "The weighted average coupon for our June non-prime production was 8.4 percent, which reflects an increased amount of higher credit grade non-prime production. Additionally, we have raised the coupon on our non-prime loans by 15 basis points over the past few weeks.

"We expect that our continued cost reductions and enhanced secondary marketing execution during the second quarter have improved our non-prime net operating margin over the first quarter of 2006. As such, we expect our non-prime net operating margin to be within the recently increased guidance range of 75 basis points to 85 basis points for the second quarter of 2006," concluded Mr. Morrice.

Second Quarter 2006 Results Announcement

The company will report its second quarter 2006 financial results on Thursday, August 3, 2006 before the market opens and will host a conference call that day at 8:00 a.m. PDT to discuss the results. To participate on the call, dial (866) 203-3206 or (617) 213-8848 and use passcode 39890835. The accompanying slide presentation will be available on the Investor Relations section of the company's Web site at http://www.ncen.com the morning before the call under "Second Quarter 2006 Earnings Event."

A replay of the call will be available from 12:00 p.m. PDT on August 3, 2006 through 12:00 p.m. PDT on August 10, 2006. The replay number is (888) 286-8010 or (617) 801-6888 and the passcode is 35115710. Additionally, the call will be webcast live and archived on the Investor Relations section of the company's Web site at http://www.ncen.com.

About New Century Financial Corporation

Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation is a real estate investment trust and one of the nation's premier mortgage finance companies, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. New Century is committed to serving the communities in which it operates with fair and responsible lending practices. To find out more about New Century, please visit http://www.ncen.com.

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws and the company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (i) the company's expectation that its continued cost reductions and enhanced secondary marketing execution during the second quarter have improved its non-prime net operating margin over the first quarter of 2006; and (ii) the company's expectation that its non-prime net operating margin will be between 75 and 85 basis points for the second quarter of 2006. The company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include, but are not limited to: (i) the condition of the U.S. economy and financial system; (ii) the interest rate environment; (iii) the effect of increasing competition in the company's sector; (iv) the stability of residential property values; (v) the ability of the company to close on its forward loan-sale commitments at its projected gain-on-sale executions; (vi) the potential effect of new state or federal laws and regulations; (vii) the outcome of litigation or regulatory actions pending against the company; and (viii) the company's ability to maintain adequate credit facilities to finance its business. Additional information on these and other factors is contained in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and the other periodic filings of the company with the Securities and Exchange Commission. The company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Mortgage Loan

Production Data

(in billions)

April 2006 April 2005

Wholesale Retail Total Wholesale Retail Total Change

Non-Prime $3.8 0.3 4.1 4.0 0.5 4.5 -8.9%

Prime and

Alt-A 0.2 0.4 0.6 -- -- -- N/A

Total $4.0 0.7 4.7 4.0 0.5 4.5 4.4%

May 2006 May 2005

Wholesale Retail Total Wholesale Retail Total Change

Non-Prime $4.3 0.4 4.7 3.9 0.4 4.3 9.3%