New Century Financial Corporation

2006 Southern California Investor ConferenceAugust 11, 2006

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Safe Harbor StatementCertain statements contained in this slide presentation 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. The forward-looking statements include, but are not limited to: (i) the company’s 2006 dividend guidance of $7.30 per share; (ii) the company’s outlook for the mortgage industry including, (a) isolated difficult markets, but no expected widespread property value declines; (b) mortgage interest rates reaching their near-term peak, however, still relatively low by historical standards; (c) higher interest rates and slow-down in home price appreciation expected to translate to higher delinquencies and credit losses than the abnormally low levels of recent years; and (d) the company’s anticipation that there will be additional industry consolidation; (iii) the company’s expectation that its credit performance will be within modeled and reserved levels; (iv) the company’s belief that it is well-positioned to take advantage and profitably grow market share; (v) the company’s expectation that future REIT portfolio additions will be made opportunistically based on the strength of the secondary market versus the securitization value of the loans; (vi) the company’s belief that it is appropriately reserved for expected losses; (vii) the projected impact of the company’s adjustable rate mortgage (ARM) resets; (viii) the company’s projections with respect to borrowers’ interest payments and debt-to-income (DTI) levels after ARM resets; (ix) the company’s plan to deliver an attractive total return to its stockholders, including dividends and share appreciation; (x) the company’s strategies to achieve the above plan, including (a) delivering consistently strong operating performance, including TRS and portfolio earnings; (b) broadening the mortgage products and services available through each of its operating channels; (c) lowering costs and increasing productivity to enhance its competitive position in the industry; (d) building and aligning human capital and (e) maintaining a strong capital and liquidity base. 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 condition of the markets for whole loans and mortgage-backed securities; (v) the stability of residential property values; (vi) the company’s ability to comply with the requirements applicable to REITs; (vii) the impact of more vigorous and aggressive enforcement actions by federal or state regulators; (viii) the company’s ability to grow its loan portfolio; (ix) the company’s ability to continue to maintain low loan acquisition costs; (x) the potential effect of new state or federal laws and regulations; (xi) the company’s ability to maintain adequate credit facilities to finance its business; (xii) the outcome of litigation or regulatory actions pending against the company; (xiii) the company’s ability to adequately hedge its residual values, cash flows and fair values; (xiv) the accuracy of the assumptions regarding the company’s repurchase allowance and residual valuations, prepayment speeds and loan loss allowance; (xv) the assumptions underlying the company’s risk management practices; (xvi) the ability of the servicing platform to maintain high performance standards; and (xvii) the execution of the company’s forward loan sales commitments. 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 slide presentation.

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Ø A real estate investment trust (REIT) and premier mortgage finance company

Ø #10 in the overall mortgage market(1)

Ø #2 in the non-prime mortgage market(1)

Ø Approximately 7,100 Associates

Ø 246 sales offices throughout U.S.

Ø Over 10 years of successful management through a variety of interest rate cycles

Ø Strategically diversifying business model

Ø Acquired prime and Alt-A platform

Ø Diversified revenue stream

Who is New Century Financial Corporation?

Revenue Sources(2)

Gain-on-Sale49%

Net Interest Income

40%

Other6%Servicing

5%

(3)

(1) Industry source for 2005; (2) For 1H06; (3) After provision for losses

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Our Market Focus

Non-prime25%

Prime66%

Alt-A9%

U.S. Mortgage Market(1)

(~$3.3 trillion)Non-prime Mortgage Loan Originations(1)

(in billions)

Non-conforming

Market

$125 $150$160 $140

$173$213

$332

$647

$806

$100

$200

$300

$400

$500

$600

$700

$800

$900

'97 '98 '99 '00 '01 '02 '03 '04 '05Source: Industry sources.

2

(1) Industry source for 2005

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Strong Financial Results

$14.2

$27.4

$42.2

$56.1

$0

$20

$40

$60

2002 2003 2004 2005

Mortgage Loan Production (in billions)

_

$4.7

$13.2

$16.1 $16.0

$0

$5

$10

$15

$20

2002 2003 2004 2005 2Q06

Mortgage Loan Portfolio (in billions)

$0.16 $0.43

$2.13

$6.50$7.30

$0

$2

$4

$6

$8

2002 2003 2004 2005 2006(E)

Dividend per Share

$0.4$0.5

$1.9$2.1 $2.1

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2002 2003 2004 2005 2Q06

Stockholders' Equity (in billions)

(E) Estimated

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Market Outlook

Ø Isolated difficult markets, but do not expect widespread property value declines

Ø Mortgage interest rates reaching near-term peak

Ø Still relatively low by historical standards

Ø Higher interest rates and slow-down in home price appreciation expected to translate to higher delinquencies and credit losses than the abnormally low levels of recent years

Ø However, expect our credit performance to be within modeled and reserved levels

Ø Anticipate additional industry consolidation

Ø Believe we are well-positioned to take advantage and profitably grow market share

Financial Performance

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Ø EPS of $1.81 increased from $1.65 in 2Q05 and $1.79 in 1Q06

Ø Loan production volume of $16.2 billion increased 20% over 2Q05 and 21% from 1Q06

Ø Non-prime net operating margin of 1.01%, more than doubled the 50 bps in 1Q06

Ø Record low non-prime loan acquisitions costs of 1.51%

Ø Recently acquired prime/Alt-A platform achieved profitability

Ø Declared 3Q06 dividend of $1.85 per share

Second Quarter 2006 Results and Highlights

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$0.9

$1.9

$2.1

$14.1

$11.5$13.2

$15.8

$13.4

$2.5

$0.0

$3.0

$6.0

$9.0

$12.0

$15.0

$18.0

2Q05 3Q05 4Q05 1Q06 2Q06

Non-prime Prime/Alt-A

Mortgage Loan Production Trend

In Billions

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Net Operating Margin – Non-prime

0.84%

0.61%0.52% 0.50%

1.01%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

2Q05 3Q05 4Q05 1Q06 2Q06

Ø 2Q06 non-prime net operating margin significantly improved sequentially due to:

Ø Stronger secondary execution

Ø Record low loan acquisition costs

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Loan Acquisition Costs – Non-prime

Note: For GAAP reconciliation see Addendum A at the end of this presentation

1.89%1.82%

1.65% 1.66%

1.51%

1.2%

1.4%

1.6%

1.8%

2.0%

2Q05 3Q05 4Q05 1Q06 2Q06

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$15.4 $15.7$13.9 $14.1 $14.1

$3.1 $2.6 $2.3 $2.1 $1.9$0

$5

$10

$15

$20

2Q05 3Q05 4Q05 1Q06 2Q06

TRS portfolio REIT portfolio

Mortgage Loan Portfolios

Ø Added $1.7 billion in mortgage loans to the REIT portfolio in 2Q06

Ø REIT portfolio additions are made opportunistically based on thestrength of secondary market vs. securitization value of the loans

In Billions

13 (1) Base loss curve is the basis for building the company’s allowance for loan losses

Our Base Loss Curve vs. Vintage Actuals(All Securitized Product) – Cumulative Pool Loss

0%

1%

2%

3%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41

Seasoning (in months)

Cum

ula

tive

Lo

ss

2003 2004 2005 2006 Base

2006 Vintage 2005 Vintage2004 Vintage

2003 Vintage

Base Loss Curve(1)

Ø 03 and 04 pools performing above expectations due to strong economy and housing market

Ø 05 and 06 pools trending more in-line with historical experience but continue to perform better than anticipated

Ø We believe we are appropriately reserved for expected losses

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Volume and CLTV of Loans Resetting

65%

70%

75%

80%

85%

90%

3Q06 4Q06 1Q07 2Q07

CLT

V

$0

$500

$1,000

$1,500

$2,000

$2,500

Vo

lume

(in M

illions)

2/28 ARMs 3/27 ARMs 2/28 IOsCurrent CLTV Original CLTV

Ø Home Price Appreciation: Loans originated in 03 and 04 that reset in 06 have experienced significant home price appreciationØ This has lowered the current CLTV on loans resetting in 06

Ø Projected Payments and Debt-To-Income (DTI) at Reset: Using the Forward 6 Month LIBOR curve the new interest rates are used to calculate the new mortgage payment; using conservative estimates, other debt payments and income are held constant to original levels

Projected Impact of ARM Resets

Note: Combined Loan-to-Value (CLTV) was computed to reflect borrower’s equity position

Payment Resets

35%

40%

45%

50%

3Q06 4Q06 1Q07 2Q07 3Q07

DTI After Reset Original DTI

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Dividend Outlook For 2006

Ø Reaffirm 2006 dividend guidance of $7.30 per share

Per Share

ØCarry-over of 2005 REIT taxable income $1.88

Ø 1H06 REIT taxable income $3.18

Ø REIT and/or TRS earnings $2.24

$7.30

Note: For GAAP reconciliation of REIT taxable income see Addendum A at the end of this presentation

Summary

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Building Stockholder Value

Ø Delivering consistently strong operating performance, including TRS and portfolio earnings

Ø Broadening the mortgage products and services available through each of our delivery channels

Ø Lowering costs and increasing productivity to enhance our competitive position in the industry

Ø Building and aligning human capital

Ø Maintaining a strong capital and liquidity base

Our business objective is to deliver an attractive total return to our stockholders, including dividends and share appreciation.

Our strategies to achieve this objective are:

New Century Financial Corporation

2006 Southern California Investor ConferenceAugust 11, 2006

Addendum A

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GAAP Reconciliation of REIT Taxable Income

($'s in thousands) 2Q06 YTD06

Consolidated pre-tax income $ 134,822 $ 250,497

Add (subtract): TRS income (82,869) (115,238) Loss provision 30,675 59,700 Actual losses(1) (17,643) (27,296) Net increase to taxable income from inter-company loan sales and other transactions 16,036 16,419

REIT taxable income $ 81,021 $ 184,082

REIT taxable income is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The most directly comparable GAAP financial measure is consolidated pre-tax income as reflected in the income statement. The company believes that the presentation of REIT taxable income provides useful information to investors due to the specific distribution requirements to report and pay common share dividends in an amount at least equal to 90 percent of REIT taxable income each year, or elect to carry the obligation to make those payments into the next fiscal year pursuant to elections allowed under the Internal Revenue Code of 1986, as amended. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

(1) Actual losses on a tax basis represent cash losses

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($'s in thousands) 2Q06 1Q06 4Q05 3Q05 2Q05 Total operating expenses $ 206,989 $ 196,089 $ 219,018 $ 233,639 $ 192,673

Add / subtract: Prime and Alt-A expense (47,306) (47,534) (52,476) (21,244) - Servicing division expense (15,140) (14,309) (15,118) (11,787) (10,749)

Excluded expenses(1) (3,100) (17,007) (15,887) (19,494) (18,150) Direct origination costs classified as a reduction in gain-on-sale and capitalized 70,100 75,700 73,400 60,200 60,900

LAC – overhead component $ 211,543 $ 192,939 $ 208,937 $ 241,314 $ 224,674 Divided by: quarterly volume (excludes prime and Alt-A) $14,010,368 $11,465,893 $13,171,734 $ 15,823,462 $ 13,444,170 LAC overhead as a % of loan production 1.51% 1.68% 1.59% 1.53% 1.67%

Prime and Alt-A expense 47,306 47,534 Excluded expenses(2) (2,176) (783)

LAC – overhead component $ 45,130 $ 46,751 Divided by: quarterly volume (Prime and Alt-A) $ 2,184,555 $ 1,953,199 LAC overhead as a % of loan production 2.07% 2.39%

GAAP Reconciliation of LAC (Operating Expense Component)

(1) Excluded expenses consist of profit-based compensation, commercial lending overhead, and certain professional fees.(2) Excluded expenses consist of profit-based compensation.

The reconciliation in the table above illustrates the differences between overhead included in LAC and overhead reflected in the income statement. The reconciliation does not address net points and fees because they are deferred at origination under GAAP and recognized when the related loans are sold or securitized.LAC is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The most directly comparable GAAP financial measure is total operating expenses as reflected in the income statement. The company believes that the presentation of LAC provides useful information to investors regarding financial performance because it allows the company to monitor the performance of its core operations, which is more difficult to do using the most directly comparable GAAP measure. Management uses LAC data for the same purpose. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

LAC GAAP Reconciliation