NEW YORK (Bloomberg) — Troubled subprime mortgage lender New Century Financial Corp. said regulators in four states accused the company of violating laws by not producing money it had promised to borrowers.Massachusetts, New Hampshire, New Jersey and New York regulators accused New Century of “failure to fund mortgage loans”, the Irvine, California-based company said in a federal filing.

The company — which made almost $60 billion in mortgages last year — said last week it couldn’t fund any new home loans as bankers including Morgan Stanley cut off credit.