LOS ANGELES AP – Bankrupt mortgage lender New Century Financial Corp. used improper accounting practices while making risky loans, creating “a ticking time bomb” that led to the company’s rapid downfall, a court examiner said in a report released Wednesday.

Michael J. Missal concluded that New Century engaged in at least seven improper accounting practices that led the company to report incorrect financial information to Wall Street for fiscal 2005 and the first nine months of 2006.