In the clearest sign yet of how quickly the funding is disappearing risk of the loans that helped fuel the housing boom, nervous creditors forced New Century Financial Corp., the second largest subprime mortgage lender, to stop doing new loans.

The Irvine, Calif., company, which has been affected by rising defaults on its subprime mortgage loans - mortgage loans to borrowers with weak credit - said it has been in talks with its creditors to “identify ways to address their concerns “And get more money in the short term. However, added that “there can be no assurance that these efforts succeed.”

Yesterday, people close to the matter said New Century received additional funds from one of its largest creditors, investment bank Morgan Stanley. Despite this, the company mounting ills intensified speculation that it may be forced to seek protection from creditors under Chapter 11 of the Federal Bankruptcy Code unless it can find a suitor or sell assets soon.

A former executive of New Century said that the company’s best option might be to try to sell its services business, which collects payments and handles other administrative tasks on loans outstanding, and its mortgage portfolio. Since September 30, the company reported that its portfolio amounted to U.S. $ 14 million.

A New Century spokeswoman declined to comment on the possibility of a bankruptcy filing or asset sales.

At 4 hours composite trading on the New York Stock Exchange, New Century shares fell 1.29 dollars, or 25%, to $ 3.87, which the company a market value of about $ 215 million. The population has fallen by 73% since last Friday, when it closed at 14.65 dollars.