On Tuesday, November 25, 2008, Attorney General Nancy Rogers and New Century Financial Corporation (NCFC) entered into an agreed final entry and order, which resolved the claims at issue in a civil action filed in March of 2007 against NCFC and certain of its affiliates. The lawsuit alleged that NCFC had committed violations of the Ohio Consumer Sales Practices Act, the Ohio Mortgage Loan Act, and the Ohio Mortgage Broker Act. See the April 2007 article discussing the lawsuit, the series of injunctions issues therein, and the tentative agreement reached between NCFC and the State of Ohio. Attorney General Targets New Century Financial Corp., Announces Review of Other Sub-Prime Mortgage Lenders.
The agreed final entry and order entered judgment in favor of the State of Ohio, declaring that the alleged conduct at issue in the lawsuit violated Ohio law. The order also enjoined the bankrupt defendants from committing further violations and ordered that NCFC would be liable to the State of Ohio for a combined $250,000 settlement payment, which would be collected in the context of NCFC's pending bankruptcy case. The order does not prohibit the State of Ohio from pursuing unrelated claims or investigating future conduct A copy of the final order is attached.