New Century Financial Corporation (NYSE: NEW), a real estate investment trust (REIT) and one of the nation's premier mortgage finance companies, today announced that total mortgage loan production for 2006 reached a new record high of $59.8 billion, which is 6.6 percent higher than the $56.1 billion originated in 2005. Additionally, loan production for December 2006 was $4.8 billion, representing a 9.4 percent decrease compared with December 2005 and a 6.7 percent increase compared with November 2006. The weighted average coupon for the company's non-prime loan production remained at 8.3 percent for December 2006, unchanged from the prior month.

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"We are pleased to have delivered another year of record loan production and profitable market share growth given the turbulent market environment," said Brad A. Morrice, President and Chief Executive Officer. "Our solid results for the year reflect a modest decline in our non-prime production, offset by the expansion of prime and Alt-A originations. For 2007, we expect our overall mortgage loan production to be relatively flat compared with 2006 as we anticipate a decline in market volume and the impact of our tighter underwriting guidelines to be offset by the continued roll-out of our Alt-A and prime products and additional market share growth for our non-prime products."

Fourth Quarter and Full-Year 2006 Results Announcement

The company will report its fourth quarter and full-year 2006 financial results on Thursday, February 8, 2007 after the market closes and will host a conference call that day at 2:00 p.m. PST to discuss the results. To participate on the call, dial (800) 561-2813 or (617) 614-3529 and use passcode 61278995. 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 "Fourth Quarter 2006 Earnings Event."

A replay of the call will be available from 7:00 p.m. PST on February 8, 2007 through 12:00 p.m. PST on February 15, 2007. The replay number is (888) 286-8010 or (617) 801-6888 and the passcode is 15291615. 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 (REIT) 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, the company's expectation that its mortgage loan production will be relatively flat in 2007 compared with 2006 as it anticipates overall declines in the mortgage market and its enhanced underwriting guidelines to be offset by the roll-out of its Alt-A and prime products and the expansion of its core non-prime product. 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)

October 2006 October 2005