<PAGE>

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2000
                                                 --------------

                                       OR

|_|  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ____________

                        Commission file number 000-22633
                                               ---------

                        NEW CENTURY FINANCIAL CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         DELAWARE                                        33-0683629
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

18400 VON KARMAN, SUITE 1000, IRVINE, CALIFORNIA                        92612
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip code)

Registrant's telephone number, including area code: (949) 440-7030
                                                    --------------

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                 YES |X| NO |_|

As of April 30, 2000, 14,765,814 shares of common stock of New Century Financial
Corporation were outstanding.

<PAGE>

               NEW CENTURY FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10-Q
                          QUARTER ENDED MARCH 31, 2000

                                      INDEX

PART I - FINANCIAL INFORMATION                                              PAGE

      Item 1.   Financial Statements                                           4

      Item 2.   Management's Discussion and Analysis of
                Financial Condition and Results of Operations                 14

      Item 3.   Quantitative and Qualitative Disclosures About
                Market Risk                                                   22

PART II - OTHER INFORMATION

     Item 1.    Legal Proceedings                                             23

     Item 2.    Changes in Securities and Use of Proceeds                     23

     Item 3.    Defaults Upon Senior Securities                               23

     Item 4.    Submission of Matters to a Vote of
                Security Holders                                              23

     Item 5.    Other Information                                             23

     Item 6.    Exhibits and Reports on Form 8-K                              23

SIGNATURES                                                                    24

EXHIBIT INDEX                                                                 25


                                       2
<PAGE>

Certain information included in this Form 10-Q may include "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 statements include the anticipated mix of whole loan sales and
securitizations for the remainder of 2000, the expectations regarding the
condition of the whole loan and securitization markets for the remainder of
2000, the assumptions used by the Company to value its residual interests
from securitizations and excess cash flow private placements, the expectation
that the Company may begin using its Paine Webber credit facility for some of
the Company's "wet" fundings, the belief that the Company's current
liquidity, credit facilities and capital resources will be sufficient to fund
its operations for the foreseeable future, and the belief that any liability
with respect to its legal actions, individually or in the aggregate, will not
have a material adverse effect on the Company. There are many important
factors that could cause the Company's actual results to differ materially
from expected results in the forward-looking statements. Such factors
include, but are not limited to, the Company's ability to access funding and
capital sources during a period of tight liquidity in the Company's industry,
the Company's limited operating history, the Company's ability to sustain and
manage its rate of growth, the impact of competition in the subprime mortgage
banking industry, the potential for legislative or regulatory changes
affecting the Company's business, and other risks identified in the Company's
Annual Report on Form 10-K for the year ended December 31, 1999 and its other
filings with the Securities and Exchange Commission.


                                       3

<PAGE>

                          Item 1. Financial Statements

               New Century Financial Corporation and Subsidiaries
                      Condensed Consolidated Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   (Dollars in thousands)
                                                                  March 31,   December 31,
                                                                    2000           1999
                                                                 ------------------------
<S>                                                              <C>            <C>
ASSETS:
Cash and cash equivalents ....................................   $  14,184      $   4,496
Loans receivable held for sale, net (notes 2 and 5) ..........     470,858        442,653
Residual interests in securitizations (note 3) ...............     401,781        364,689
Mortgage servicing assets (note 4) ...........................      22,802         22,145
Accrued interest receivable ..................................       1,889          1,538
Income taxes receivable ......................................          --            548
Office property and equipment ................................       3,565          3,780
Prepaid expenses and other assets ............................      30,822         23,860
                                                                 ------------------------

TOTAL ASSETS .................................................   $ 945,901      $ 863,709
                                                                 ========================

LIABILITIES AND STOCKHOLDERS' EQUITY:

Warehouse and aggregation lines of credit (note 5) ...........   $ 463,757      $ 428,726
Residual financing ...........................................     207,797        177,493
Subordinated debt ............................................      30,000         20,000
Notes payable ................................................       2,582          3,051
Income taxes payable .........................................       4,781             --
Accounts payable and accrued liabilities .....................      22,044         26,484
Deferred income taxes ........................................      34,992         34,992
                                                                 ------------------------
        Total liabilities ....................................     765,953        690,746

Stockholders' equity:
Preferred stock, $.01 par value.  Authorized 7,500,000 shares;
    40,000 shares issued and outstanding .....................          --             --
Common stock, $.01 par value.  Authorized 45,000,000 shares;
    issued and outstanding 14,737,912 shares at March 31, 2000
    and 14,694,984 shares at December 31, 1999 ...............         147            147
Additional paid-in capital ...................................      85,972         85,625
Retained earnings, restricted ................................      93,899         87,351
                                                                 ------------------------
                                                                   180,018        173,123
Deferred compensation costs ..................................         (70)          (160)
                                                                 ------------------------
        Total stockholders' equity ...........................     179,948        172,963
                                                                 ------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...................   $ 945,901      $ 863,709
                                                                 ========================
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                       4

<PAGE>

               New Century Financial Corporation and Subsidiaries
                  Condensed Consolidated Statements of Earnings
                      (In thousands, except per share data)
                                   (Unaudited)

                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                        2000             1999
                                                    ----------------------------
Revenues:
  Gain on sale of loans ...........................   $ 22,810         $ 29,428
  Interest income .................................     18,441           15,318
  Servicing income ................................     19,133            9,465
                                                      -------------------------
    Total revenues ................................     60,384           54,211
                                                      -------------------------

Expenses:
  Personnel .......................................     13,245           12,191
  Interest ........................................     18,086           12,416
  General and administrative ......................     11,488            9,474
  Advertising and promotion .......................      3,464            2,385
  Professional services ...........................      1,384            1,120
                                                      -------------------------
    Total expenses ................................     47,667           37,586
                                                      -------------------------

Earnings before income taxes ......................     12,717           16,625

Income taxes ......................................      5,444            6,813
                                                      -------------------------

Net earnings ......................................   $  7,273         $  9,812
                                                      =========================

Basic earnings per share (note 6) .................   $   0.45         $   0.66
                                                      =========================

Diluted earnings per share (note 6) ...............   $   0.38         $   0.55
                                                      =========================

See accompanying notes to unaudited condensed consolidated financial statements.


                                       5

<PAGE>


               New Century Financial Corporation and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                               (In thousands)
                                                                        Three Months Ended March 31,
                                                                          2000             1999
                                                                        ---------------------------
<S>                                                                     <C>              <C>
Cash flows from operating activities:
Net earnings ........................................................   $    7,273       $    9,812
Adjustments to reconcile net earnings to net cash used in
    operating activities:
  Depreciation and amortization .....................................        2,220            1,405
  NIR gains .........................................................      (25,023)         (40,936)
  Initial deposits to over-collateralization accounts ...............      (14,104)         (21,845)
  Deposits to over-collateralization accounts .......................      (18,661)          (3,121)
  Release of cash from over-collateralization accounts ..............       14,311            2,557
  Servicing gains ...................................................       (2,062)          (4,519)
  Amortization (accretion) of NIRs/I/O's ............................        6,385           (1,119)
  General valuation provision for NIRs ..............................           --            4,000
  Net proceeds from NIMS transaction ................................           --           76,098
  Provision for losses ..............................................        2,267            3,469
  Loans originated or acquired for sale .............................     (956,203)        (892,722)
  Loan sales, net ...................................................      926,456          872,880
  Principal payments on loans receivable held for sale ..............        6,709              233
  Increase (decrease) in warehouse and aggregation lines of credit ..       29,228             (642)
  Net change in other assets and liabilities ........................       (8,176)           4,165
                                                                        ---------------------------
Net cash provided by (used in) operating activities .................      (29,380)           9,715
                                                                        ---------------------------

Cash flows from investing activities:
  Purchase of office property and equipment .........................         (304)             (55)
  Acquisition of Primewest ..........................................          (43)            (108)
                                                                        ---------------------------
Net cash used in investing activities ...............................         (347)            (163)

Cash flows from financing activities:
  Net proceeds from residual financing ..............................       30,304          (29,281)
  Proceeds from issuance of subordinated debt .......................       10,000               --
  Net repayments of notes payable ...................................         (469)            (505)
  Payment of dividends on convertible preferred stock ...............         (725)            (279)
  Net proceeds from issuance of stock/purchase of treasury stock ....          305              157
                                                                        ---------------------------
Net cash provided by financing activities ...........................       39,415          (29,908)
                                                                        ---------------------------

Net increase (decrease) in cash and cash equivalents ................        9,688          (20,356)
Cash and cash equivalents, beginning of period ......................        4,496           30,875
                                                                        ---------------------------
Cash and cash equivalents, end of period ............................   $   14,184       $   10,519
                                                                        ===========================

Supplemental cash flow disclosure:
  Interest paid .....................................................   $   18,156       $   12,397
  Income taxes paid .................................................   $      115       $    3,087
Supplemental non-cash financing activity:
  Stock issued in connection with acquisition of Primewest ..........   $       43       $      108
  Net assets acquired through acquisition of subsidiary .............   $      553       $       --
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements.


                                       6
<PAGE>

               NEW CENTURY FINANCIAL CORPORATION AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

                             March 31, 2000 and 1999

1. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three months ended March 31, 2000 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 2000.

Residual interests in securitizations - Residual interests in securitizations
(Residuals) are recorded as a result of the sale of loans through
securitizations and the sale of residual interests in securitizations through
what are sometimes referred to as net interest margin securities (NIMS).

The loan securitizations are generally structured as follows: First, the Company
sells a portfolio of mortgage loans to a special purpose entity (SPE) which has
been established for the limited purpose of buying and reselling mortgage loans.
The SPE then transfers the same mortgage loans to a Real Estate Mortgage
Investment Conduit or Owners Trust (the REMIC or Trust), and the Trust in turn
issues interest-bearing asset-backed securities (the Certificates) generally in
an amount equal to the aggregate principal balance of the mortgage loans. The
Certificates are typically sold at face value and without recourse except that
representations and warranties customary to the mortgage banking industry are
provided by the Company to the Trust. One or more investors purchase these
Certificates for cash. The Trust uses the cash proceeds to pay the Company the
cash portion of the purchase price for the mortgage loans. The Trust also issues
a certificate representing a residual interest in the payments on the
securitized loans. In addition, the Company may provide a credit enhancement for
the benefit of the investors in the form of additional collateral
(over-collateralization account or OC Account) held by the Trust. The OC Account
is required by the servicing agreement to be maintained at certain levels.

At the closing of each securitization, the Company removes from its consolidated
balance sheet the mortgage loans held for sale and adds to its consolidated
balance sheet (i) the cash received, (ii) the estimated fair value of the
interest in the mortgage loans retained from the securitizations (Residuals),
which consist of (a) the OC Account and (b) the net interest receivable (NIR)
and (iii) the estimated fair value of the servicing asset. The NIR represents
the discounted estimated cash flows to be received by the Company in the future.
The excess of the cash received and the assets retained by the Company over the


                                       7
<PAGE>

carrying value of the loans sold, less transaction costs, equals the net gain on
sale of mortgage loans recorded by the Company.

The NIMS are generally structured as follows. First, the Company sells or
contributes the Residuals to an SPE which has been established for the limited
purpose of receiving and selling asset-backed residual interests in
securitization certificates. Next, the SPE transfers the Residuals to an owner
trust (the Trust) and the Trust in turn issues interest-bearing asset-backed
securities (the bonds and certificates). The Company sells these Residuals
without recourse except that normal representations and warranties are provided
by the Company to the Trust. One or more investors purchase the bonds and
certificates and the proceeds from the sale of the bonds and certificates, along
with a residual interest certificate that is subordinate to the bonds and
certificates, represent the consideration to the Company for the sale of the
Residuals.

At the closing of each NIMS, the Company removes from its consolidated balance
sheet the carrying value of the Residuals sold and adds to its consolidated
balance sheet (i) the cash received, and (ii) the estimated fair value of the
portion of the Residuals retained, which consists of the net interest receivable
(NIR) and the OC account. The excess of the cash received and assets retained
over the carrying value of the Residuals sold, less transaction costs, equals
the net gain or loss on the sale of Residuals recorded by the Company.

The Company allocates its basis in the mortgage loans and residual interests
between the portion of the mortgage loans and residual interests sold through
the Certificates and the portion retained (the Residuals and servicing assets)
based on the relative fair values of those portions on the date of sale. The
Company may recognize gains or losses attributable to the changes in the fair
value of the Residuals, which are recorded at estimated fair value and accounted
for as "held-for-trading" securities. The Company is not aware of an active
market for the purchase or sale of Residuals and, accordingly, the Company
determines the estimated fair value of the Residuals by discounting the expected
cash flows released from the OC Account (the cash out method) using a discount
rate commensurate with the risks involved. The Company has utilized an effective
discount rate of approximately 12% on the estimated cash flows released from the
OC Account to value the Residuals through securitization and approximately 14%
on the estimated cash flows released from the Trust to value Residuals through
NIMS transactions.

The Company receives periodic servicing fees for the servicing and collection of
the mortgage loans as master servicer of the securitized loans. In addition, the
Company is entitled to the cash flows from the Residuals that represent
collections on the mortgage loans in excess of the amounts required to pay the
Certificate principal and interest, the servicing fees and certain other fees
such as trustee and custodial fees. At the end of each collection period, the
aggregate cash collections from the mortgage loans are allocated first to the
base servicing fees and certain other fees such as trustee and custodial fees
for the period, then to the Certificateholders for interest at the pass-through
rate on the Certificates plus principal as defined in the servicing agreements.
If the amount of cash required for the above allocations exceeds the amount
collected during the collection period, the shortfall is drawn from the OC
Account. If the cash collected during the period exceeds the amount necessary
for the above allocations, and there is no shortfall in


                                       8
<PAGE>

the related OC Account, the excess is released to the Company. If the OC Account
balance is not at the required credit enhancement level, the excess cash
collected is retained in the OC Account until the specified level is achieved.
The cash and collateral in the OC Account is restricted from use by the Company.
Pursuant to certain servicing agreements, cash held in the OC Accounts may be
used to make accelerated principal paydowns on the Certificates to create
additional excess collateral in the OC Account which is held by the Trusts on
behalf of the Company as the Residual holder. The specified credit enhancement
levels are defined in the servicing agreements as the OC Account balance
expressed generally as a percentage of the current collateral principal balance.

The Annual Percentage Rate (APR) on the mortgage loans is relatively high in
comparison to the pass-through rate on the Certificates. Accordingly, the
Residuals described above are a significant asset of the Company. In determining
the value of the Residuals, the Company must estimate the future rates of
prepayments, prepayment penalties to be received by the Company, delinquencies,
defaults and default loss severity as they affect the amount and timing of the
estimated cash flows. The Company uses an annual default rate estimate of 0.55%
to 1.25% for adjustable rate first trust deeds, 0.40% to 0.80% for fixed rate
first trust deeds and 0.75% to 1.30% for second trust deeds. The Company's
default rate estimates result in cumulative loss estimates as a percentage of
the original principal balance of the mortgage loans of 2.06% to 3.57% for
adjustable rate first trust deeds, 1.95% to 2.97% for fixed rate first trust
deeds and 2.84% to 2.97% for second trust deeds. These estimates are based on
current pool performance, historical loss data for comparable loans and the
specific characteristics of the loans originated by the Company. The Company
estimates prepayments by evaluating historical prepayment performance of
comparable mortgage loans and the impact of trends in the industry. The Company
has used a prepayment curve to estimate the prepayment characteristics of the
mortgage loans. The rate of increase, duration, severity and decrease of the
curve depends on the age and nature of the mortgage loans, primarily whether the
mortgage loans are fixed or adjustable and the interest rate adjustment
characteristics of the mortgage loans (6 month, 1 year, 2 year, 3 year or 5 year
adjustment periods). The Company's prepayment curve and default estimates have
resulted in weighted average lives of between 1.93 to 3.23 years for its
adjustable mortgage loans and 3.80 to 4.37 years for its fixed rate mortgage
loans.

Due to the uncertainty associated with estimating future cash flows caused by
the lack of historical performance data on the mortgage loans and the absence of
an active market for the purchase and sale of Residuals, the Company has
historically established a general valuation allowance. The general valuation
allowance is based on the Company's periodic evaluation of the Residuals, which
takes into consideration trends in actual cash flow performance, industry and
economic developments, as well as other relevant factors. The Company has also
historically recorded write-downs in the carrying value of its residual
interests as a result of actual prepayment and loss experience. During the years
ended December 31, 1999 and 1998, the Company recorded $28.5 million and $5.9
million, respectively, in write-downs of the carrying value of its residual
interests.

As of March 31, 2000, the Company determined that the carrying value of its
residual interests approximated their fair market value at that date.
Consequently, no write-down or addition to the general valuation allowance was
necessary.


                                       9
<PAGE>

2. Loans Receivable Held for Sale, Net

A summary of loans receivable held for sale, at the lower of cost or market at
March 31, 2000 and December 31, 1999 follows (dollars in thousands):

                                                       March 31,   December 31,
                                                         2000           1999
                                                       ---------     ---------
Mortgage loans receivable ..........................   $ 470,008     $ 441,803
Net deferred origination costs .....................         850           850
                                                       ---------     ---------
                                                       $ 470,858     $ 442,653
                                                       =========     =========

3. Residual Interests in Securitizations

Residual interests in securitizations consist of the following components at
March 31, 2000 and December 31, 1999 (dollars in thousands):

                                                       March 31,   December 31,
                                                         2000           1999
                                                       ---------     ---------
Over-collateralization account .....................   $ 202,999     $ 184,545
Net interest receivable (NIR) ......................     203,782       185,144
                                                       ---------     ---------
                                                         406,781       369,689
General valuation allowance ........................      (5,000)       (5,000)
                                                       ---------     ---------
                                                       $ 401,781     $ 364,689
                                                       =========     =========

The following table summarizes activity in the NIR amounts for the three months
ended March 31, 2000 and 1999 (dollars in thousands):

                                                          2000          1999
                                                       ---------     ---------
Balance, beginning of period .......................   $ 185,144     $ 126,103
Sale of NIR through NIMS ...........................          --       (71,156)
NIR gains ..........................................      25,023        40,936
Write-down of NIR ..................................          --        (4,000)
NIR accretion (amortization) .......................      (6,385)        1,119
                                                       ---------     ---------
Balance, end of period .............................   $ 203,782     $  93,002
                                                       =========     =========


                                       10
<PAGE>

The following table summarizes activity in the OC accounts for the three months
ended March 31, 2000 and 1999 (dollars in thousands):

                                                          2000          1999
                                                       ---------     ---------
Balance, beginning of period .......................   $ 184,545     $  89,792
Initial deposits to OC accounts ....................      14,104        21,845
Additional deposits to OC accounts .................      18,661         3,121
Release of cash from OC accounts ...................     (14,311)       (2,557)
                                                       ---------     ---------
Balance, end of period .............................   $ 202,999     $ 112,201
                                                       =========     =========

The following table summarizes activity in the allowance for NIR losses for the
three months ended March 31, 2000 and 1999 (dollars in thousands):

                                                          2000          1999
                                                       ---------     ---------
Balance, beginning of period .......................   $   5,000     $  10,500
Provision for NIR losses ...........................          --         4,000
Charge-offs of NIR .................................          --        (4,000)
                                                       ---------     ---------
Balance, end of period .............................   $   5,000     $  10,500
                                                       =========     =========

4. Mortgage Servicing Assets

Mortgage servicing assets represent the carrying value of the Company's
servicing portfolio. The following table summarizes activity in mortgage
servicing assets for the three months ended March 31, 2000 and 1999 (dollars in
thousands):

                                                          2000          1999
                                                       ---------     ---------
Balance, beginning of period .......................   $  22,145     $   8,665
Additions ..........................................       2,062         4,519
Amortization .......................................      (1,405)         (396)
                                                       ---------     ---------
Balance, end of period .............................   $  22,802     $  12,788
                                                       =========     =========

The table below summarizes activity in the Company's mortgage loan servicing
portfolio for the three months ended March 31, 2000 and 1999 (dollars in
millions):

                                                          2000          1999
                                                       ---------     ---------
Balance, beginning of period .......................   $   5,950     $   3,786
Loans funded .......................................         956           892
Payoffs/servicing released sales ...................        (839)         (213)
                                                       ---------     ---------
Balance, end of period .............................   $   6,067     $   4,465
                                                       =========     =========


                                       11
<PAGE>

5.   Warehouse and Aggregation Lines of Credit

Warehouse and aggregation lines of credit consist of the following at March 31,
2000 and December 31, 1999 (dollars in thousands):

                                                        March 31,  December 31,
                                                          2000         1999
                                                        --------   -----------
A $320 million line of credit expiring in May 2000
secured by loans receivable held for sale, bearing
interest based on one month LIBOR (6.13% at
March 31, 2000) ....................................   $ 251,156     $ 234,778

A $603 million master repurchase agreement bearing
interest based on one month LIBOR (6.13% at
March 31, 2000), secured by loans receivable held
for sale. The agreement may be terminated
by the lender giving 28 days written notice ........     137,433       164,326

A $300 million loan and security agreement bearing
interest based on one month LIBOR (6.13% at
March 31, 2000), secured by loans receivable held
for sale, expiring in June 2000 ....................      44,733        17,682

$13 million in warehouse lines of credit from two
commercial banks bearing interest based on
prime rate, secured by loans receivable held for sale,
which may be terminated by the lender giving
written notice .....................................       5,803            --

A $293 million loan and security agreement bearing
interest based on one month LIBOR (6.13% at
March 31, 2000), secured by loans receivable held
for sale, expiring in August 2000 ..................      24,632        11,940
                                                       ---------     ---------
                                                       $ 463,757     $ 428,726
                                                       =========     =========

The warehouse and aggregation line of credit agreements contain certain
restrictive financial and other covenants which require the Company to, among
other things, restrict dividends, maintain certain net worth and liquidity
levels, remain below specified debt-to-net-worth ratios and comply with
regulatory and investor requirements. At March 31, 2000, the Company was in
compliance with these financial and other covenants.


                                       12
<PAGE>

6.       Earnings per Share

The following table illustrates the computation of basic and diluted earnings
per share for the periods indicated (dollars in thousands, except per share
amounts):

                                                    Three Months Ended March 31,
                                                            2000      1999
                                                    ----------------------------

Basic:

Net earnings                                           $   7,273      $   9,812
      Less: dividends earned on preferred stock             (725)          (375)
                                                       ---------      ---------
Earnings available to common shareholders              $   6,548      $   9,437

Weighted average common shares outstanding                14,594         14,279
                                                       ---------      ---------

Earnings per share                                     $    0.45      $    0.66
                                                       =========      =========

Diluted:

Net earnings                                           $   7,273      $   9,812
                                                       =========      =========

Weighted average number of common and
  Common equivalent shares outstanding:
     Weighted average common shares outstanding           14,594         14,279
     Dilutive effect of convertible preferred stock,
     stock options and warrants, after application         4,720          3,704
                                                       ---------      ---------
                                                          19,314         17,983

Earnings per share                                     $    0.38      $    0.55
                                                       =========      =========


                                       13
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

General

New Century Financial Corporation (together with its subsidiaries, the
Company) is a specialty finance company engaged in the business of
originating, purchasing, selling and servicing sub-prime mortgage loans
secured primarily by first mortgages on single family residences. The Company
originates and purchases loans through its Wholesale and Retail Divisions and
through its Primewest and anyloan.com subsidiaries. The Company's borrowers
generally have substantial equity in the property securing the loan, but have
impaired or limited credit profiles or higher debt-to-income ratios than
traditional mortgage lenders allow. The Company's borrowers also include
individuals who, due to self-employment or other circumstances, have
difficulty verifying their income, as well as individuals who prefer the
prompt and personalized service provided by the Company.

Loan Originations and Purchases

As of March 31, 2000, the Company's Wholesale Division was operating through
five regional operating centers and 31 additional sales offices. The
Wholesale Division funded $709.3 million in loans during the three months
ended March 31, 2000. As of March 31, 2000, the Company's Retail Division was
operating through 76 sales offices. The Retail Division funded $247.1 million
in loans during the three months ended March 31, 2000, which includes loans
funded through the Company's Primewest and anyloan.com subsidiaries.

Loan Sales and Securitizations

Loan Sale Strategy. The Company's loan sale strategy includes both
securitizations and whole loan sales in order to advance the Company's goal of
enhancing profits while managing cash flows. Loan sales through securitizations
permit the Company to enhance operating profits and to benefit from future cash
flows generated by the residual interests retained by the Company. Whole loan
sale transactions enable the Company to generate current cash flow, protect
against the potential volatility of the securitization market and reduce the
risks inherent in retaining residual interests in securitizations.

The Company's primary source of revenue is the recognition of gains from the
sale of its loans through whole loan sales and securitizations. In a whole
loan sale, the Company recognizes and receives a cash gain upon sale. In a
securitization, the Company recognizes a gain on sale at the time the loans
are sold, but receives corresponding cash flows, represented by the
over-collateralization amount (OC) and the Net Interest Receivable (NIR)
(combined, the Residuals), over the actual life of the loans. As a result of
timing differences in receiving cash from whole loan sales versus
securitizations, the relative percentage of whole loan sales to
securitizations will affect the Company's operating cash flow. For the
quarter ended March 31, 2000, $496.8 million, or 53.6%, of the Company's loan
sales were in the form of whole loan sales. Based on current liquidity and
profit projections and current market conditions, the Company anticipates the
percentage of whole loan sales will remain more than 50% of loan sales in
future quarters of 2000.

                                       14
<PAGE>

The Company has, to date, elected to fund the required OC at the closing of most
of its securitizations. The over-collateralization requirement ranges from two
to five percent of the initial securitization bond debt principal balance or
four to nine percent of the remaining principal balance after thirty to
thirty-six months of principal amortization. When funding all of the OC Account
up front, the Company begins to receive cash flow from the Residual immediately.
In those cases where only a portion of the OC Account is funded up front, the
Company will begin to receive cash flow from the Residual more quickly than in
cases where no initial funding is undertaken. Cash flows from the Residuals are
subject to certain delinquency or credit loss tests, as defined by the rating
agencies or the bond insurance companies. Over time, the Company will also
receive the OC, subject to the performance of the mortgage loans in each
securitization.

In connection with the origination and purchase of loans, the Company may either
receive or pay origination fees. These fees, referred to as "points" or
"premiums" in the mortgage industry, are dependent on the source of loan
production. Typically, they correspond to the amount of further processing
required for a loan to be funded and are determined as a percentage of the loan
amount. The points received from the origination of loans and the premiums paid
to originate and acquire loans are included in the gain recognized from the sale
of loans in the income statement.

The following table sets forth loan sales for the periods indicated (dollars in
thousands):

                                                        For the Three Months
                                                          Ended March 31,
                                                          2000          1999
                                                       -----------------------
Whole loan sales ...................................   $ 496,776     $ 296,011
Securitizations ....................................     429,680       576,869
                                                       -----------------------
         Total loan sales ..........................   $ 926,456     $ 872,880
                                                       =======================

Condition of Secondary Market. For the past several quarters, whole loan
prices have remained at levels significantly lower than the prices received
by the Company in earlier periods. Although prices have increased in the
first quarter of 2000 and there are indications of further price increases in
the second quarter of 2000, whole loan prices are still significantly lower
than in 1997 and early 1998. In addition, more buyers in the whole loan
market are confining their purchases to loans having very specific
attributes. Unlike 1997 and early 1998, the Company has found it to be more
difficult to identify buyers willing to purchase a pool of loans representing
a cross section of the Company's entire loan production. Consequently, in the
first quarter of 2000, the Company's whole loan sales were characterized by
smaller pools of more narrow characteristics sold to a larger number of
buyers. However, if whole loan prices continue to increase, the Company can
take advantage of the benefit to a higher cash component of earnings, and
reduce the risk inherent in selling loans through securitization.

These factors will continue to affect the Company's secondary marketing
strategy, cash flow and profitability. Based on current liquidity and profit
projections and current market conditions, the Company expects that in the
remainder of 2000 more than 50% of its sales will be in the form of whole loan
sales.


                                       15
<PAGE>

Results of Operations

As of March 31, 2000, the Company's Wholesale Division operated through 31 sales
offices and five regional operating centers located in 24 states. The number of
account executives in the Wholesale Division decreased slightly to 144 at March
31, 2000, compared to 155 at March 31, 1999. The Company's Retail Division
operates through 76 sales offices located in 28 states. The number of loan
officers in the Retail Division, including the Primewest and Anyloan
subsidiaries, increased to 359 at March 31, 2000, from 309 at March 31, 1999.

Three Months Ended March 31, 2000 Compared to Three Months Ended March 31, 1999

The Company originated and purchased $956.5 million in loans for the three
months ended March 31, 2000, compared to $891.9 million for the three months
ended March 31, 1999. Loans originated and purchased through the Company's
Wholesale Division were $709.3 million, or 74.2%, of total originations and
purchases for the three months ended March 31, 2000. Loans originated through
the Company's Retail Division, including its Primewest and Anyloan
subsidiaries, were $247.1 million, or 25.8%, of total originations and
purchases for the three month period. For the same period in 1999, Wholesale
and Retail originations and purchases totaled $646.1 million, or 72.4% and
$245.8 million, or 27.6%, respectively, of total originations and purchases.

Total revenues for the three months ended March 31, 2000 increased to $60.4
million, from $54.2 million for the three months ended March 31, 1999. This
increase was due to (i) the increase in loan originations and purchases and
sales in 2000, and (ii) the increase in servicing revenues due to the
increase in the mortgage loan servicing portfolio and the portfolio of
residual interests in securitizations. Gain on sale of loans decreased to
$22.8 million for the three months ended March 31, 2000 from $29.4 million
for the three months ended March 31, 1999, due to (i) the decrease in whole
loan prices; (ii) the decrease in securitizations; and (iii) the increase in
premiums paid to acquire wholesale loans, which allowed the Company to
quickly increase coupon rates in response to rising interest rates.


                                       16
<PAGE>

The components of the gain on sale of loans are illustrated in the following
table (dollars in thousands):

                                                    Three Months Ended March 31,
                                                       2000              1999
                                                       ----              ----
Gain from whole loan sale transactions              $ 12,711          $ 10,398
Non-cash gain from securitizations                    25,023            40,936
Non-cash gain from servicing asset                     2,062             4,519
Cash loss from securitizations/NIMS                       --            (4,659)
Securitization expenses                               (2,163)           (3,426)
Accrued interest                                      (2,814)           (3,874)
Provision for losses                                  (2,267)           (3,469)
General valuation provision for NIR                       --            (4,000)
Non-refundable loan fees                              13,572            11,451
Premiums paid                                         (7,814)           (4,200)
Origination costs                                    (15,500)          (14,000)
Hedging losses                                            --              (248)
                                                    --------          --------
Gain on sale of loans                               $ 22,810          $ 29,428
                                                    ========          ========

Whole loan sales increased to $496.8 million for the three months ended March
31, 2000, from $296.0 million for the corresponding period in 1999. This
increase is the result of a change in the mix of whole loan sales versus
securitizations. Loans sold through whole loan sales increased to 53.6% of total
loan sales in the three months ended March 31, 2000, compared to 33.9% for the
corresponding period in 1999.

Interest income increased to $18.4 million for the three months ended March 31,
2000, from $15.3 million for the same period in 1999, primarily due to increased
interest income from loans held for sale. Interest income is earned on loans
held in inventory for sale. Such interest income accrues during periods when
loans are accumulated for future sales, and increases as loan originations and
purchases increase. The increase in interest income for the three months ended
March 31, 2000 is the result of a higher average inventory of loans held for
sale compared to the corresponding period in 1999, primarily as a result of
increased loan originations and purchases.

Servicing income increased to $19.1 million for the three months ended March 31,
2000, from $9.5 million for the three months ended March 31, 1999. This increase
resulted from the increase in securitizations, pursuant to which the Company
retains ownership of the servicing rights and the residual interests. Servicing
income reflects servicing fees received on loans sold or securitized by the
Company, net of amortization of mortgage servicing assets, as well as income
recognized on residual cash flows from securitizations. As of March 31, 2000,
the Company had securitized over $6.8 billion in loans and retained the
servicing rights. As of March 31, 1999, the Company had securitized $4.0 billion
in loans. The portfolio of residual interests in securitizations grew from
$205.4 million at December 31, 1998 to $364.7 million at December 31, 1999.

Total expenses increased to $47.7 million for the three months ended March 31,
2000, from $37.6 million for the three months ended March 31, 1999. Interest
expense increased due to the higher level of loan inventory and corresponding
warehouse and


                                       17
<PAGE>

aggregation borrowings. All other expense components increased from 1999 to 2000
due primarily to higher loan origination volume in the three months ended March
31, 2000 compared to the same period in 1999.

Residual Securities

The carrying value of the Company's residual securities at March 31, 2000 and
December 31, 1999 is summarized below (dollars in thousands):

                                                    March 31,      December 31,
                                                      2000             1999
                                                    --------       -----------
Carrying value of securities                        $406,781          $369,689
Less: general valuation allowance for NIR             (5,000)           (5,000)
                                                    --------          --------
         Net book value                             $401,781          $364,689
                                                    ========          ========

In establishing the net book value of the residual securities, management
reviews on a quarterly basis the underlying assumptions used to value each
residual security and adjusts the carrying value of the securities based on
actual experience and trends in the industry. During the first quarter of 2000,
there was no adjustment to the carrying value of the Company's residual
interests, compared to a $4.0 million write-down recorded in the first quarter
of 1999.

Liquidity and Capital Resources

Financing Sources. The Company requires access to short-term warehouse and
aggregation credit facilities in order to fund loan originations and
purchases pending the securitization and sale of such loans. In May 1999, the
Company renewed its $300.0 million warehouse line of credit led by U.S. Bank
National Association, with an expiration date in May 2000 and an interest
rate equal to the one month LIBOR plus 1.25%. During the first quarter of
2000, the facility was increased to $320.0 million. At March 31, 2000, the
balance outstanding under the warehouse line of credit was $251.2 million.
The Company expects to renew this warehouse line of credit prior to its
expiration.

Borrowings under the warehouse line are secured by first and second mortgages
funded through the facility. Within seven days of funding, the Company is
required to deposit the mortgage note and file with U.S. Bank to be held as
collateral. If the file is incomplete, U.S. Bank ceases to count the loan as
valid collateral in calculating the Company's available borrowing capacity.
As a consequence, the Company is essentially forced to use its own cash to
carry the loan until the file defect can be cured and the loan can be
resubmitted under the warehouse line. As of March 31, 2000, the Company's
"zero-collateral" balance was not material and did not affect the Company's
liquidity.

As of March 31, 2000, the Company also had a $600.0 million aggregation
facility with Salomon Smith Barney (Salomon), which is subject to renewal by
Salomon on a monthly basis and bears interest at a rate generally equal to
the one month LIBOR plus 1.25%. This facility was renewed on April 1, 2000.
In November 1998, the Company established a $3.0 million line of credit with
Salomon secured by a newly-formed special purpose subsidiary of the Company
that will hold residential properties owned by the Company from time to time.
In April 2000, the maximum borrowing under this facility was increased to
$25.0 million, bearing interest at a rate equal to one-month LIBOR plus 2.00%.


                                       18
<PAGE>

The balance of the combined Salomon facilities as of March 31, 2000 was
$137.4 million.

During the second quarter of 1999, the Company negotiated a second aggregation
and residual financing facility with Greenwich Capital Markets (Greenwich). The
aggregation facility totals $300.0 million, and bears interest at a rate equal
to the one-month LIBOR plus 1.25%. The facility is structured as a loan and
security agreement and consists of a $200 million committed portion and a $100
million uncommitted portion. It expires in June 2000. At March 31, 2000, the
balance outstanding under the aggregation facility was $24.6 million. The
Company expects to renew this facility prior to its expiration.

In July 1999, the Company negotiated a third aggregation and residual
financing facility with Paine Webber Real Estate Securities, Inc. (Paine
Webber). The $300 million facility is an uncommitted facility and is
structured as a loan and security agreement, bearing interest at a rate based
on the one month LIBOR. The Paine Webber facility also includes a "wet
funding" feature that will permit the Company to use the facility to fund its
loan originations and purchases. The facility renews after one year, unless
terminated by the Company. As of March 31, 2000, the balance outstanding
under this facility was $44.7 million.

At present, the Company utilizes the U.S. Bank warehouse line to finance the
actual funding of its loan originations and purchases. In future periods, the
Company may also begin using the Paine Webber facility for this purpose. After
loans are funded by the Company using the warehouse line and all loan
documentation is complete, the loans are generally transferred to the Salomon,
Greenwich or Paine Webber aggregation facilities. The aggregation facilities are
paid down with the proceeds of loan sales and securitizations.

The Company has residual financing arrangements with Salomon, Greenwich and
Paine Webber, whereby the respective lender provides financing of the Company's
residual interests in securitizations as well as its residual interest from NIM
transactions. The amount of residual financing provided upon each securitization
is determined pursuant to formulas set forth in the respective agreements and is
generally subject to repayment as a result of changes in the market value of the
residual interests or the formula used by the lead underwriter to determine the
market value of the residual interest (which the lead underwriter may adjust in
its discretion). The Greenwich residual financing facility has an aggregate
limit of $30 million. The Paine Webber facility is uncommitted, and is built
into the overall $300 million limit for that facility. The Salomon facility is
structured as a repurchase arrangement, and does not have a specified limit. The
facilities bear interest at a rate based on the one month LIBOR. At March 31,
2000, the balance outstanding under these facilities was $207.8 million.

The Company's business requires substantial cash to support its operating
activities and growth plans. As a result, the Company is dependent on the
U.S. Bank warehouse facility, the aggregation lines and the residual
financing facilities in order to finance its continued operations. If
Salomon, U.S. Bank, Greenwich or Paine Webber decided not to renew its credit
facility with the Company, all amounts outstanding under the facility would
become immediately due and payable and, coupled with the loss of borrowing
capacity, this could have a material adverse impact on the Company's results
of operations, business and financial condition unless the Company found a
suitable alternative financing source.

                                       19
<PAGE>

Industry Liquidity Environment. Although the Company currently has access to
numerous financing sources, the financing environment for sub-prime mortgage
lenders in general remains unfavorable by historical standards. In recent
quarters, several of the Company's competitors have had warehouse or
aggregation facilities withdrawn or substantially curtailed. In addition, as
whole loan prices have fallen, lenders have gradually reduced the levels at
which they will lend against mortgage loans and residual interests. This
reduction in advance rates has had a negative effect on the Company's cash
flow. If the lower advance rates persist, it may affect the Company's
secondary marketing strategy, and may have a material adverse effect on the
Company's results of operations, business and financial condition.

There can be no assurance that the Company's lenders will not further reduce
their advance rates to the Company under the warehouse, aggregation and residual
financing facilities, or that the Company will be able to raise additional cash
from investors in future quarters. The cash impact of advance rate reductions or
the inability to raise additional capital could have a material adverse effect
on the Company's results of operations, business and financial condition.

Strategy. The Company has employed a variety of strategies to deal with the
more difficult financing environment and to permit the Company to pursue its
desired secondary marketing strategy. In order to reduce its reliance on
single sources of aggregation, warehouse and residual financing, the Company
established the Greenwich and Paine Webber facilities. In addition, the
Company has devoted significant efforts to reducing its origination costs.
Although the "all-in acquisition cost" per loan - defined as the sum of fees
paid to wholesale brokers and correspondents, direct loan origination costs,
including commissions and corporate overhead costs, net of points and fees
received from borrowers, all divided by total production volume - increased
from the first quarter of 2000 compared to the first quarter of 1999, the
Company took significant steps to reduce its expenses during the first
quarter of 2000. Specifically, the Company reduced staffing by more than 10%,
and closed several sales offices.

Cash Flow. For the three months ended March 31, 2000, the Company's
operations used approximately $29.4 million in cash, which is primarily
attributable to cash invested in the OC account for the first quarter
securitization. The Company records a residual interest in securitization and
recognizes a gain on sale when it effects a securitization, but only receives
the cash representing such gain over the life of the loans securitized. In
order to support its loan origination, purchase and securitization programs,
the Company is required to make significant cash investments that include the
funding of: (i) fees paid to brokers and correspondents in connection with
generating loans through wholesale lending activities; (ii) fees and expenses
incurred in connection with the securitization and sale of loans including
over-collateralization requirements for securitization; (iii) commissions
paid to sales employees to originate loans; (iv) any difference between the
amount funded per loan and the amount advanced under the current warehouse
facility; (v) principal and interest payments on residual financing secured
by the NIM residual bonds, for which the Company does not expect to receive
cash flows during the next few quarters; and (vi) income tax payments arising
from the recognition of gain on sale of


                                       20
<PAGE>

loans. The Company also requires cash to fund ongoing operating and
administrative expenses, including capital expenditures and debt service. The
Company's sources of operating cash flow include: (i) the premium advance
component of the aggregation facilities; (ii) premiums obtained in whole loan
sales; (iii) mortgage origination income and fees; (iv) interest income on loans
held for sale; (v) excess cash flow from securitization trusts; and (vi)
servicing income.

The Company has a discretionary, non-revolving $5.0 million line of credit with
an affiliate of U.S. Bank secured by the Company's furniture and equipment.
Advances under this facility are made periodically at the discretion of the
lender, and bear interest at a fixed rate established at the time of each
advance for a term of three years. As of March 31, 2000, the balance outstanding
under this facility was $2.6 million, and the weighted-average interest rate was
9.21%.

The Company has various non-revolving operating lease agreements totaling $19.1
million at March 31, 2000, for purposes of financing office property and
equipment. Advances under these facilities are made periodically and a financing
rate is established at the time of each advance.

Subject to the various uncertainties described above, the Company anticipates
that its current liquidity, credit facilities and capital resources will be
sufficient to fund its operations for the foreseeable future.

U.S. Bancorp Investment and Strategic Alliance

During the first quarter of 2000, the Company received an additional $10.0
million in subordinated debt from U.S. Bank. In addition, in April 2000, the
parties entered into an agreement pursuant to which U.S. Bank (i) provided an
additional $5.0 million in subordinated debt, (ii) committed to provide an
additional $5.0 million in subordinated debt over the remainder of 2000
provided that the Company achieves certain milestones, and (iii) extended the
term of all subordinated debt, including the new commitment, to June 2002. In
exchange, the Company (i) amended the conversion rate of the Series 1999A
Convertible Preferred Stock from 46.80 to 69.98 and (ii) granted U.S. Bank up
to 725,000 warrants, 650,000 of which are exercisable at $9.5625 per share
and the remainder of which are exercisable at the market value of Company
Common Stock on the date of issuance. Approximately 75% of the warrants have
vested. Of the remainder, a portion vest in quarterly increments if the
Company has not prepaid the subordinated debt and a portion are granted
concurrently with funding the additional $5.0 million in subordinated debt.

                                       21
<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of March 31, 2000, the Company had $401.8 million in residual interests in
securitizations and $22.8 million in mortgage servicing assets which subject the
Company to market risk. These assets are carried at fair value on the Company's
balance sheet. The Company determines the fair value of these assets using
significant assumptions (See "Notes to Consolidated Financial Statements - Basis
of Presentation"). In future periods, if cash flows are greater than projected,
the value of the assets will increase. Alternatively, if cash flows are less
than projected, the value of the assets will decrease. The Company also has
loans receivable held for sale and outstanding borrowings which subject the
Company to market risk. Loans receivable held for sale are generally sold, and
the related borrowings repaid, within three months.


                                       22
<PAGE>

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

      The Company occasionally becomes involved in litigation arising in the
      normal course of business. Management believes that any liability with
      respect to such legal actions, individually or in the aggregate, will not
      have a material adverse effect on the Company.

Item 2. Change in Securities and Use of Proceeds

      In consideration of U.S. Bank's investment of an additional $5.0
      million in subordinated debt and its commitment to provide another $5.0
      million in subordinated debt, on April 28, 2000, the Company
      amended its Certificate of Designation for the Series 1999A
      Convertible Preferred Stock ("1999A Preferred Stock"), changing the
      conversion rate from 46.80 to 69.98. As a result thereof, the
      20,000 shares of 1999A Preferred Stock outstanding are convertible
      into 1,399,600 shares of Company Common Stock, as opposed to
      936,000 shares prior to the amendment. Furthermore, in
      consideration of the foregoing, the Company issued to U.S. Bank up
      to 725,000 warrants, 650,000 of which are exercisable at $9.5625
      per share and the remainder of which are exercisable at the market
      value of Company Common Stock on the date of issuance.
      Approximately 75% of the warrants have vested. Of the remainder, a
      portion vest in quarterly increments if the Company has not prepaid
      the subordinated debt and a portion are granted concurrently with
      funding the additional $5.0 million in subordinated debt. The sale
      and issuance of the warrants were exempt from the registration
      requirements of the Securities Act by virtue of Section 4(2) of the
      Securities Act and Regulation D thereunder.

      On March 20, 2000, the Company acquired all of the outstanding
      capital stock of Worth Funding Incorporated, a California
      corporation, from its sole stockholder (the "Seller"). In partial
      consideration therefor, the Company issued 13,577 shares of Company
      Common Stock to the Seller and has agreed to issue an additional
      number of shares to the Seller with a market value of $125,000 on
      January 1, 2001. The sale and issuance of the shares were exempt
      from the registration requirements of the Securities Act by virtue
      of Section 4(2) of the Securities Act and Regulation D thereunder.
      In connection with this transaction, the Company also issued to the
      Seller and others options to purchase 90,000 shares of Common Stock
      at $7.00 per share.

Item 3. Defaults Upon Senior Securities

      None.

Item 4. Submission of Matters to a Vote of Security Holders

      None.

Item 5. Other Information

      None.

Item 6. (a) Exhibits required by Item 601 of Regulation S-K

      See "Exhibit Index."

      (b)   Reports on Form 8-K

      None.


                                       23
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                 NEW CENTURY FINANCIAL CORPORATION


DATE: May 12, 2000               By: /s/ Robert K. Cole
                                    -----------------------------------
                                    Robert K. Cole
                                    Chief Executive Officer


DATE: May 12, 2000               By: /s/ Edward F. Gotschall
                                    -----------------------------------
                                    Edward F. Gotschall
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)


                                       24
<PAGE>
                                  EXHIBIT INDEX

Exhibit            Description of
Number                 Exhibit
------             --------------

*3.1        First Amended and Restated Certificate of Incorporation of the
            Company

**3.2       Certificate of Designation for Series 1998A Convertible Preferred
            Stock

***3.3      Certificate of Designation for Series 1999A Convertible Preferred
            Stock

*3.4        First Amended and Restated Bylaws of the Company

3.5         Amended Certificate of Designations for Series 1999A Convertible
            Preferred Stock

*4.1        Specimen Stock Certificate

****4.2     Specimen Series 1998A Convertible Preferred Stock Certificate

***4.3      Specimen Series 1999A Convertible Preferred Stock Certificate

10.1        Subordinated Loan Agreement by and among New Century Mortgage
            Corporation and U.S. Bank National Association, dated
            April 28, 2000

10.2        Warrant Issuance Agreement by and among New Century Financial
            Corporation, U.S. Bancorp and U.S. Bank National Association, dated
            April 28, 2000

10.3        Promissory Note by New Century Mortgage Corporation, dated
            April 28, 2000

10.4        Amended and Restated Registration Rights Agreement by and among
            New Century Financial Corporation, U.S. Bancorp and U.S. Bank
            National Association, dated April 28, 2000

10.5        Amended and Restated Pledge and Security Agreement by and among
            New Century Mortgage Corporation and U.S. Bank National
            Association, dated April 30, 2000

10.6        Amended and Restated Security Agreement by and among NC Capital
            Corporation, NC Residual II Corporation and U.S. Bank National
            Association, dated April 30, 2000

10.7        Amended and Restated Servicing Security Agreement by and among
            New Century Mortgage Corporation and U.S. Bank National
            Association, dated April 30, 2000

10.8        Intercreditor Agreement by and among US Bank National
            Association, NC Capital Corporation, NC Residual II Corporation and
            Salomon Smith Barney, Inc. dated April 26, 2000

10.9        Master Loan & Security Agreement, by and among New Century
            Mortgage Corporation, NC Capital Corporation and Salomon Brothers
            Realty Corp, dated April 1, 2000

10.10       Letter Agreement Salomon Brothers Realty Corp, NC Capital
            Corporation and New Century Mortgage Corporation, dated
            April 1, 2000

27.1        Financial Data Schedule

*     Incorporated by reference from the Company's Form S-1 Registration
      Statement (No. 333-25483) as filed with the SEC on June 23, 1997.

**    Incorporated by reference from the Company's Form 8-K as filed with the
      SEC on December 8, 1998.

***   Incorporated by reference from the Company's Quarterly Report on Form
      10-Q as filed with the SEC on August 16, 1999.

****  Incorporated by reference from the Company's Annual Report on Form 10-K
      for the year ended December 31, 1998 as filed with the SEC.

                                       25