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Exhibit 10.7
 NEW CENTURY FINANCIAL CORPORATION
2004 PERFORMANCE INCENTIVE PLAN
PERFORMANCE-ACCELERATED STOCK OPTION AGREEMENT
 THIS PERFORMANCE-ACCELERATED STOCK OPTION AGREEMENT Option Agreement  Award Date NEW CENTURY FINANCIAL CORPORATION Corporation  Grantee Option
 WITNESSETH
 WHEREAS Plan
 NOW, THEREFORE
 1.
    
    Defined Terms.Capitalized terms are defined in the Plan if not defined herein.2.
    
    Grant of Option.
 1  Exercise Price 1  Expiration
Date 1,2
 
 1
    
    Subject to adjustment under Section 7.1 of the Plan2
    
    Subject to early termination under Section 6 below and Section 7.4 of the Plan




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3.
    
    Vesting; Limits on Exercise.
 th Exhibit A
 
    
    Cumulative Exercisability. To the extent that the Option is vested and
exercisable, the Grantee has the right to exercise the Option (to the extent not
previously exercised), and such right shall continue, until the expiration or earlier
termination of the Option.
    
    No Fractional Shares. Fractional share interests shall be disregarded, but
may be cumulated.
    
    Minimum Exercise. No fewer than 1001 shares of Common Stock may
be purchased at any one time, unless the number purchased is the total number at the
time exercisable under the Option.
    
    Nonqualified Stock Option. The Option is a nonqualified stock option and is
not, and shall not be, an incentive stock option within the meaning of Section 422 of
the Code.
 4.
    
    Continuance of Employment/Service Required; No Employment/Service Commitment.
   5.
    
    Method of Exercise of Option.




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
    
    a written notice stating the number of shares of Common Stock to be purchased
pursuant to the Option or by the completion of such other administrative exercise
procedures as the Administrator may require from time to time,
    
    payment in full for the Exercise Price of the shares to be purchased in cash, check
or by electronic funds transfer to the Corporation, or (subject to compliance with all
applicable laws, rules, regulations and listing requirements and further subject to
such rules as the Administrator may adopt as to any non-cash payment) in shares of
Common Stock already owned by the Grantee, valued at their Fair Market Value on the
exercise date, provided, however, that any shares initially acquired
upon exercise of a stock option or otherwise from the Corporation must have been owned
by the Grantee for at least six (6) months before the date of such exercise;
    
    any written statements or agreements required pursuant to Section 8.1 of the Plan;
and
    
    satisfaction of the tax withholding provisions of Section 8.5 of the Plan.
   6.
    
    Early Termination of Option.
 6.1 Possible Termination of Option upon Change in Control.
 6.2 Termination of Option upon a Termination of Grantees Employment or Services. Severance Date
 
    
    other than as expressly provided below in this Section 6.2, (a) the Grantee will
have until the date that is 30 days after his or her Severance Date to exercise the
Option (or portion thereof) to the extent that it was vested on the Severance Date, (b)
the Option, to the extent not vested on the Severance Date, shall terminate on the
Severance Date, and (c) the Option, to the extent exercisable for the 30-day period
following the Severance Date and not exercised during such period, shall terminate at
the close of business on the last day of the 30-day period;




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
    
    if the termination of the Grantees employment or services is the result of the
Grantees voluntary Retirement (as defined below and other than a termination by the
Corporation or a Subsidiary for Cause as provided below), then (a) the Grantee will
have until the date that is 3 years after his or her Severance Date to exercise the
Option (or portion thereof) to the extent that it was vested on the Severance Date or
becomes vested pursuant to the following, (b) any portion of the Option that was
scheduled to vest during the 3-year period following the Severance Date shall
automatically become fully vested and exercisable as of the Severance Date, (c) to the
extent the Option was not vested on the Severance Date or scheduled to vest during such
3-year period, such portion of the Option shall terminate on the Severance Date, and
(d) the Option, to the extent exercisable and not exercised at the end of such 3-year
period, shall terminate at the close of business on the last day of the 3-year period;
    
    if the termination of the Grantees employment is the result of the Grantees
voluntary Early Retirement (as defined below and other than a termination by the
Corporation or a Subsidiary for Cause as provided below), then (a) the Grantee will
have until the date that is 3 years after his or her Severance Date to exercise the
Option (or portion thereof) to the extent that it was vested on the Severance Date or
becomes vested pursuant to the following, (b) the Administrator may, in its sole
discretion, provide that all or any portion of the Option that was scheduled to vest
during the 3-year period following the Severance Date shall automatically become fully
vested and exercisable as of the Severance Date, (c) to the extent the Option was not
vested on the Severance Date (after giving effect to any accelerated vesting pursuant
to the foregoing clause (b)), such portion of the Option shall terminate on the
Severance Date, and (d) the Option, to the extent exercisable and not exercised at the
end of such 3-year period, shall terminate at the close of business on the last day of
the 3-year period;
    
    if the termination of the Grantees employment is the result of the Grantees death
or Disability (as defined below), then (a) the Grantee (or his beneficiary or personal
representative, as the case may be) will have until the date that is 3 years after the
Grantees Severance Date to exercise the Option, (b) the Option, to the extent not
otherwise vested on the Severance Date, shall become fully vested as of the Severance
Date, and (c) the Option, to the extent exercisable for the 3-year period following the
Severance Date and not exercised during such period, shall terminate at the close of
business on the last day of the 3-year period;
    
    if the Grantees employment or services are terminated by the Corporation or a
Subsidiary for Cause (as defined below), the Option (whether vested or not) shall
terminate on the Severance Date.
 Disability Retirement




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Early Retirement Cause
  6.3 Termination of Option upon Grantees Engagement in Competition or Breach of Agreement.




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7.
    
    Non-Transferability.
  8.
    
    Notices.
  9.
    
    Plan.
 after
 10.
    
    Entire Agreement.
  11.
    
    Governing Law.




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12.
    
    Effect of this Agreement.
  13.
    
    Section Headings.
  IN WITNESS WHEREOF
 NEW CENTURY FINANCIAL CORPORATION
a Maryland corporationBy:Name:
    Brad MorriceTitle:
    Vice Chairman, President and Chief

Operating Officer PARTICIPANTBy:Name:




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EXHIBIT A
 PERFORMANCE-ACCELERATED VESTING
 Vesting Percentage Stock Price Stock
Price Threshold
 Vesting Percentage
    
    Stock Price Threshold25%
    
    $
    46.0050%
    
    $
    53.0075%
    
    $
    60.00100%
    
    $
    67.00
 Adjustments