Nationstar completes exit from reverse mortgage origination business
Remains focused on the servicing side
Business is booming at Nationstar Mortgage (NSM), which reported quarterly net income of $67 million, or $0.74 per share, for the second quarter, a 174% increase over the $24 million or $0.27 per share in the first quarter 2014.
The news helped silence critics of the nonbank servicer.
So, now it’s back to business.
A business that now officially no longer includes the origination of reverse mortgages.
A spokesman for Nationstar confirmed that, as announced in June, the company would be exiting from the business.
In June, Nationstar notified Champion Mortgage employees that their positions would be eliminated.
Champion came along with the acquisition of Greenlight Loans in 2013.
Nationstar continued to use the reverse mortgage platform for a year, but only minimally.
The spokesman said the layoffs, estimated to be in the low dozens, represents the company’s “focus on our core consumer direct” forward mortgage origination business.
“Our emphasis in reverse mortgage has been and continues to be on the servicing business,” said John Hoffman, spokesman for Nationstar.
“We are one of the largest reverse mortgage servicers in the country, with a portfolio of $28.9 billion UPB as of March 31, 2014," he added.