Effective for taxable years beginning on or after January 1, 2005, these relief provisions generally will be available if our failure to meet the tests is due to reasonable cause and not due to willful neglect and if we satisfy certain specified filing and disclosure requirements set forth in the Code. For example, in Illinois and Ohio the Clark case in Illinois U. In addition, if as a result of their purchasing practices, these government-sponsored entities experience significantly higher-than-expected losses, such experience could harm the overall investor perception of the subprime mortgage industry. Significant repurchase activity could harm our cash flow, results of operations, financial condition and business prospects. Such notices allow the borrower the opportunity to cure the delinquency within the next 30 days in order to avoid referral to foreclosure.
New Century grew rapidly through the late 1990s and early 2000s, however its business model was not sustainable for the long term. The occurrence of any failures or interruptions could harm our results of operations, financial condition and business prospects. Our board of directors is divided into three classes with staggered terms of office of three years each. The incident acted as a blow to other upcoming organizations that looked up to New Century. The creation of an anonymous complaint system by regulatory authorities could provide an outlet for junior members in auditing firms to report major violations of standards by higher levels of management in both the company being audited and the accounting firm itself. We may also be required to make distributions to our stockholders at disadvantageous times or when we do not have funds readily available for distribution. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand.
Morrice served as General Counsel and a director of Option One. The failure of this Corporation was projected earlier on and it was so nigh that everyone noticed. However, many of these laws and rules extend beyond curbing predatory lending practices to restrict commonly accepted lending activities, including some of our activities. Instead of paying capital gain dividends, we may elect to require stockholders to include our undistributed net capital gains in their income. This would reduce the amount of cash we receive over the life of the loans in securitizations structured as financings and our residual interests, and could require us to reduce the carrying value of our residual interests.
Any failure or interruption or breach in security of our information systems or the third-party information systems on which we rely could cause underwriting or other delays and could result in fewer loan applications being received, slower processing of applications and reduced efficiency in loan servicing. For example, a significant decrease in interest rates could increase the rate at which loans are prepaid, which also could require us to reduce the carrying value of our residual interests. Incentives for excessive risk-taking will revive, and so will the lobbying power of banks and other financial firms. Loan acquisition costs include the fees paid to wholesale brokers and correspondents, direct loan origination costs, including commissions and corporate overhead costs, less points and fees received from borrowers, divided by total production volume. Furthermore, prepayment rates and loss rates were estimated using historical data related to activity occurring years prior without adjusting for changing market conditions which resulted in an overvaluation of residual interest. If the management could have given this priority and put all the necessary mechanisms towards ensuring the survival of the Corporation, its sustenance would be ensured. Our Wholesale Division originates and purchases loans through a network of independent mortgage brokers and correspondent lenders solicited by our Account Executives.
Competition from other lenders and purchasers of mortgage loans could negatively affect the volume and pricing of our wholesale loans, which could harm our results of operations, financial condition and business prospects. Any other strategy means more collective jail time. These relief provisions generally will be available if our failure to meet the tests is due to reasonable cause and not due to willful neglect, we attach a schedule of the sources of our income to our federal income tax return and any incorrect information on the schedule is not due to fraud with intent to evade tax. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals. In addition, certain government-sponsored entities, such as Fannie Mae and Freddie Mac, are also expanding their participation in the subprime mortgage industry. Holder is referred to herein as a Non-U.
However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Dodge has also served as the Executive Vice President and Chief Financial Officer of New Century Mortgage since March 2004 and served as the Senior Vice President and Chief Financial Officer of New Century Mortgage between February 2002 and March 2004. Clark pending in the Illinois Supreme Court. Moreover, as a result of this ruling, plaintiffs are filing actions against lenders, including us, seeking various forms of relief as a result of any fees received in the past that exceeded the applicable thresholds. New Century Mortgages response to the petition was filed in February 2004.
Sony was founded after post-war of Japan 1946 by two innovative thinkers Masaru Ibuka and Akio Morita, who wanted to step in the business of electronics. The volume of new or modified laws and regulations has increased in recent years and, in addition, some individual municipalities have begun to enact laws that restrict loan servicing activities. Reputation for high quality customer service. The case study examines the practical business model and accounting New Century and focuses on the role of management, the Audit Committee and the external auditors of the problems of the new century, based on the findings bankruptcy examiner. During 2003, we shifted our strategy to address the cyclical nature of our earnings with the goal of generating a more stable long-term earnings stream. In August, 2007, with house prices falling and mortgage delinquencies rising, the market for subprime securities froze.
The expanded reporting takes effect in 2004 for reports filed in 2005. We cannot assure you that our hedging strategy and the derivatives that we use will adequately offset the risk of interest rate volatility or that our hedging transactions will not result in losses, and such losses could harm our results of operations, financial condition and business prospects. Our board of directors may authorize the issuance of additional shares that may cause dilution and may depress the price of New Century common stock. Gotschall also serves as a director of New Century Mortgage and was its Chief Financial Officer until February 2002. Then, a very careful reading should be done at second time reading of the case. Our Wholesale Division As of December 31, 2004, our Wholesale Division operated through 26 regional operating centers located in 15 states and employed 769 Account Executives. These five forces includes three forces from horizontal competition and two forces from vertical competition.