Nationstar Mortgage, the subprime lender purchased by Fortress Investment Group LLC, is the latest lender to cease wholesale operations according to numerous sources. I’d first noted rumors of massive job cuts at Nationstar last week, on the basis of numerous emails I’d received from now-former employees of the company. (HW readers already know that I expect wholesale lending to essentially disappear, especially in the subprime lending space, so this news isn’t entirely unexpected.) It appears that neither Nationstar nor Fortress have made executives available for comment to the press on the move; the exit from wholesale lending leaves Nationstar with a comparatively small retail origination channel and a large $10 billion servicing portfolio. Nationstar originated $4.4 billion during the first quarter, according to numbers posted on the company’s Web site, and National Mortgage News has reported that the company funded just $609 million via its retail channels during the second quarter. Many sources I’ve spoken to have suggested the company’s retail operations may also be at risk. Fortress purchased the subprime mortgage banking operations of homebuilder Centex in March 2006 in a deal worth approximately $575 million, which it then renamed Nationstar Mortgage. My best to those affected, as I know many from Nationstar read this blog each day.

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please