SUBSEQUENT TRANSFER INSTRUMENT

          Pursuant to this Subsequent Transfer Instrument, dated December 30,
1999 (the "Instrument"), among New Century Mortgage Securities, Inc. as seller
(the "Depositor"), Firstar Bank, N.A. as trustee (the "Trustee") of the New
Century Home Equity Loan Trust, Series 1999- NCD and U.S. Bank National
Association, as purchaser on behalf of the Trustee (the "Trust Administrator"),
and pursuant to the Pooling and Servicing Agreement, dated as of December 1,
1999 (the "Pooling and Servicing Agreement"), among the Depositor as depositor,
New Century Mortgage Corporation as master servicer, the Trustee as trustee and
the Trust Administrator as trust administrator, the Depositor and the Trust
Administrator agree to the sale by the Depositor and the purchase by the Trust
Administrator for the Trustee on behalf of the Trust Fund, of the Mortgage Loans
listed on the attached Schedule of Mortgage Loans (the "Subsequent Mortgage
Loans").

          Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

          Section 1. CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

          (a) The Depositor does hereby sell, transfer, assign, set over and
convey to the Trust Administrator for the Trustee on behalf of the Trust Fund,
without recourse, all of its right, title and interest in and to the Subsequent
Mortgage Loans, and including all amounts due on the Subsequent Mortgage Loans
after the related Subsequent Cut-off Date, and all items with respect to the
Subsequent Mortgage Loans to be delivered pursuant to Section 2.04 of the
Pooling and Servicing Agreement; provided, however that the Depositor reserves
and retains all right, title and interest in and to amounts due on the
Subsequent Mortgage Loans on or prior to the related Subsequent Cut-off Date.
The Depositor, contemporaneously with the delivery of this Agreement, has
delivered or caused to be delivered to the Trust Administrator each item set
forth in Section 2.04 of the Pooling and Servicing Agreement. The transfer to
the Trust Administrator by the Depositor of the Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the Master Servicer, the Trustee, the Trust Administrator and the
Certificateholders to constitute and to be treated as a sale by the Depositor to
the Trust Fund.

          (b) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the Trust
Administrator without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated the date hereof, among the Depositor as
purchaser, the Master Servicer as originator and NC Capital Corporation as
seller, to the extent of the Subsequent Mortgage Loans.

          (c) Additional terms of the sale are set forth on Attachment A hereto.


<PAGE>

          Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.

          (a) The Depositor hereby confirms that each of the conditions
precedent and the representations and warranties set forth in Section 2.11 of
the Pooling and Servicing Agreement are satisfied as of the date hereof.

          (b) All terms and conditions of the Pooling and Servicing Agreement
are hereby ratified and confirmed; provided, however, that in the event of any
conflict, the provisions of this Instrument shall control over the conflicting
provisions of the Pooling and Servicing Agreement.


          Section 3. RECORDATION OF INSTRUMENT.

          To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

          Section 4. GOVERNING LAW.

          This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

          Section 5. COUNTERPARTS.

          This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.


<PAGE>



          Section 6. SUCCESSORS AND ASSIGNS.

          This Instrument shall inure to the benefit of and be binding upon the
Depositor and the Trustee and their respective successors and assigns.


                                    NEW CENTURY MORTGAGE SECURITIES,
INC.


                                    By:  /s/ John Kontoulis
                                       ------------------------------
                                    Name:    John Kontoulis
                                    Title:   Senior Vice President



                                    U.S. BANK NATIONAL ASSOCIATION,
                                    as trust administrator


                                    By:  /s/ Harry H. Hall
                                       ------------------------------
                                    Name:    Harry H. Hall
                                    Title:   Vice President



                                    FIRSTAR BANK, N.A.,
                                    as trustee


                                    By:  /s/ Charles F. Pedersen
                                       ------------------------------
                                    Name:    Charles F. Pedersen
                                    Title:   Vice President


ATTACHMENTS

A.    Additional terms of sale.
B.    Schedule of Subsequent Mortgage Loans.


<PAGE>



                                  ATTACHMENT A
                                  ------------


                            ADDITIONAL TERMS OF SALE

     A.   General

          1.   Subsequent Cut-off Date: December 1, 1999
          2.   Subsequent Transfer Date: December 30, 1999
          3.   Aggregate Principal Balance of the Subsequent Mortgage Loans
               as of the Subsequent Cut-off Date:  $52,935,677.42
          4.   Purchase Price:  100.00%

     B.   The following representations and warranties with respect to each
Subsequent Mortgage Loan determined as of the Subsequent Cut-off Date is true
and correct: (i) the Subsequent Mortgage Loan may not be 30 or more days
delinquent as of the related Subsequent Cut-off Date (except with respect to
1.00% of the Subsequent Mortgage Loans, by aggregate principal balance as of the
related Subsequent Cut-off Date, which may be 30 or more days delinquent but
less than 60 days delinquent as of the related Subsequent Cut-off Date); (ii)
the stated term to maturity of the Subsequent Mortgage Loan will not be less
than 180 months and will not exceed 360 months; (iii) the Subsequent Mortgage
Loan may not provide for negative amortization; (iv) such Subsequent Mortgage
Loan will not have a combined loan-to-value ratio greater than 95.00%; (v) such
Subsequent Mortgage Loans will have, as of the Subsequent Cut-off Date, a
weighted average term since origination not in excess of one month; (vi) such
Subsequent Mortgage Loan shall have a Mortgage Rate that is not less than
7.000%; (vii) such Subsequent Mortgage Loan shall have been serviced by the
Master Servicer since originated or purchased by the Depositor; (viii) such
Subsequent Mortgage Loan must have a first payment date occurring on or before
February 1, 2000 and (xii) such Subsequent Mortgage Loan shall have been
underwritten in accordance with the criteria set forth under "Underwriting
Standards of the Originator and Representations Concerning the Mortgage Loans"
in the Prospectus Supplement.

     C.   Following the purchase of the Subsequent Mortgage Loans by the Trust
Fund, the Mortgage Loans (including such Subsequent Mortgage Loans) will as of
the Subsequent Cut-off Date: (i) have a weighted average original term to stated
maturity of not more than 360 months; (ii) have a weighted average Mortgage Rate
of not less than 10.040%; (iii) have a weighted average loan-to-value ratio of
not more than 74.00% and (iv) have no Mortgage Loan with a principal balance in
excess of $875,000. Notwithstanding the foregoing, any Subsequent Mortgage Loan
may be rejected by either Rating Agency if the inclusion of such Subsequent
Mortgage Loan would adversely affect the ratings on any class of Offered
Certificates.



<PAGE>


                                  ATTACHMENT B
                                  ------------


                                 Filed by paper.