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.
Nationstar Halts Wholesale Originations
Most Popular Articles
Latest Articles
Real estate farming: Become the go-to agent in your area using these tips, tools & strategies
Learn how to generate a steady pipeline of real estate leads and clients in your area using this proven approach.
-
Zillow believes the evolution of the industry will only help it grow
-
All parties have settled the Sitzer/Burnett suit, so what’s next?
-
Longtime reverse mortgage leader Scott Norman appointed CEO of Texas MBA
-
Rates at 7% attract different types of borrowers, forcing lenders to rethink profit strategies
-
The unchanging