In the last year, Nationstar Mortgage (NSM) has transformed Solutionstar, one of the company’s wholly owned subsidiaries, into Xome, which boasted that it was “the world’s first integrated, end-to-end digital platform for real estate, with the promise of connecting every major touch point in the transaction process, from finding a home to closing the deal.”
Nationstar tasked Kal Raman with shepherding that transition, adding Raman as CEO of Solutionstar in November 2014.
Since joining Solutionstar last year, Raman oversaw the transformation of Solutionstar into Xome, through its launch in June.
But now, just over one year after he took over Solutionstar, Raman is resigning.
Nationstar announced Raman’s resignation in a Monday filing with the Securities and Exchange Commission.
In the SEC filing, Nationstar said that Raman resigned as president and CEO of Xome as of Nov. 23.
No reason for Raman’s resignation is given, but the SEC filing does state that Raman will be paid a severance payment of $600,000 paid out over the next 52 weeks.
Raman’s severance agreement also states that Raman will forfeit the shares of restricted stock in Nationstar that he was granted on Dec. 1, 2014. According to the SEC filing, Raman’s approximately 50,000 stock options were due to vest on Dec. 1, 2015.
Earlier this month, Nationstar reported that its third quarter earnings were down $3 million from the second quarter, falling from $35 million to $32 million.
According to Nationstar’s earnings statement, Xome reported pretax income of $17 million in the third quarter, which was down 39% from the second quarter. Additionally, Xome reported revenue of $109 million, which was down 11% from the second quarter.
According to Nationstar, Xome offers consumers a one-stop shop for the entire real estate experience, all the way from picking a house and an agent through securing financing and closing the deal.
In previous statements, Nationstar claimed that Xome was the first company in the housing industry to offer a full “one-stop shop” for buying a home.
As part of the transition from Solutionstar to Xome, Xome made use of the extensive data generated by Real Estate Digital, a real estate data aggregation company Solutionstar acquired in May 2014, to create a “robust” home price predictive model.
Jay Bray, Nationstar’s CEO, said that the launch of Xome is a big step in the future of the company.
“Xome's customer-centric offerings are a continuation of Nationstar's goal to be the most customer-focused and compliant real estate services company in the United States,” Bray said. “We firmly believe this platform will ultimately alter the way real estate transacts, provide customers with more control and transparency into the transaction process, and create additional value for Nationstar’s shareholders.”
Now, one of the main players behind the Xome transition is exiting.
Raman joined Solutionstar from Groupon, where he was CEO of the company’s Asia Pacific region. Prior to that, he was Groupon’s chief operating officer.
Prior to his time at Groupon, Raman served as vice president of global fulfillment at eBay. Before that Raman served as CEO of GlobalScholar, a leader in enterprise software to K-12 public schools.
Raman has also served as senior vice president at Amazon, where he led the company’s retail technology and marketing units and was responsible for driving the company’s global non-media business for retailers and sellers.
Raman is also the former CEO of drugstore.com.
And now, he’s the former CEO of Xome too.
HousingWire contacted Nationstar for a comment on Raman's departure, but as of publication, Nationstar had not responded.