EXHIBIT 5

                  [NEW CENTURY LETTERHEAD]



March 2, 2001


New Century Financial Corporation
18400 Von Karman, Suite 1000
Irvine, California 92616

     Re:  Registration on Form S-8 of New Century
          Financial Corporation (the "Company")

Gentlemen:

     At your request, I have examined the Registration
Statement on Form S-8 to be filed with the Securities and
Exchange Commission in connection with the registration under
the Securities Act of 1933, as amended, of an additional
500,000 shares of Common Stock, par value $0.01 per share, of
the Company (the "Common Stock"), to be issued pursuant to
the New Century Financial Corporation 1995 Stock Option Plan,
as amended (the "Plan").  I have examined the proceedings
heretofore taken and to be taken in connection with the
authorization of the Plan and the Common Stock to be
issued pursuant to and in accordance with the Plan.

     Based upon such examination and upon such matters of
fact and law as I have deemed relevant, I am of the opinion
that the Common Stock has been duly authorized by all
necessary corporate action on the part of the Company and,
when issued in accordance with such authorization, the
provisions of the Plan and relevant agreements duly
authorized by and in accordance with the terms of the Plan,
will be validly issued, fully paid and nonassessable.

     I consent to the use of this opinion as an exhibit to
the Registration Statement.

                                   Respectfully submitted,

                                   /s/ Stergios Theologides

                                   Stergios Theologides
                                   Senior Vice President,
                                   General Counsel and Secretary