Current news for this company:
J.B. Nutter & Co. - Wholesale - Agency, FHA
Update - 2009-10-26: It has been brought to our attention that J.B. Nutter & Company resumed accepting new business from wholesale clients in March 2009 following the self-imposed moratorium they announced in late January. A report by Reverse Market Insight ranks them as the #1 wholesale reverse mortgage lender by volume for the month of August.
Update - 2009-01-26: J.B. Nutter & Company announced an extension today of their moratorium on new loan submissions, extending a previous two-week halt into March of 2009.
"Warehouse lending issues have forced us to reduce the number of files we can close each day. As such, we must extend our moratorium on new files until March 2009. We advise that you seek out another wholesale lender for the time being and we will keep you posted when new file submissions can resume."
V.P. of Reverse Mortgage Paul Madson did not return our call, but brokers were able to confirm this means all new loans, reverse mortgage applications included, are on hold.
Original Listing - 2009-01-23: Calling a halt to 'forward' originations, J.B. Nutter & Company announced the funding "bottleneck" is permanent. From the email sent to Brokers:
"From this point forward, James B. Nutter & Company will not be accepting registrations or files for "forward" mortgages any longer. We are withdrawing from the wholesale "forward" mortgage market. This would include all conventional, FHA, HUD 184 and VA loans."
Matthew L. Moore (Matt), Vice President says they will "continue working diligently to provide the best service available for our current "reverse" brokers and correspondents."
Original Ailing Post - 2009-01-13: J.B. Nutter & Company announced a two-week moratorium beginning 2009-01-09 on new loan submissions due to a funding "bottleneck" they are experiencing. From the memo:
That was followed by another email on 2008-09-12 that stated "Rumors indicating that Fannie Mae is the source of the problem or has otherwise been compromised are not true. In fact, Fannie Mae has been ably assisting us in fixing the problem." ReverseMortgageDaily explains the probable cause being due to a change in Fannie Mae's pricing policy that "created a backup of loans at FNMA" for reverse mortgages and notes "JB doesn't say it's FNMA, but we all know they're the only ones buying HECMs."
Prior to those announcements, on 2009-01-08 we received the following comments from a broker doing business with J.B. Nutter:
Founded in 1951 and officially the "James B. Nutter & Co.," the Kansas City, MO lender specializes in FHA and Reverse Mortgage lending and also offers conventional loans through both retail and wholesale channels. According to Reverse Mortgage Alert, J.B. Nutter was consistently among the top reverse mortgage lenders in the early years of the HECM program. Average monthly volume for 2007 is reported as $14.8 million and with the recent surge in reverse lending and refinancings the numbers for 2008 are likely higher, but nothing like the $261 million per month achieved back in 2003. From the testimony of J.B. Nutter Vice President George Lopez on 2007-12-12 before the Senate's Committee on Aging:
"The length of our firm's experience with the reverse mortgage product is exceeded only by the depth of our experience. Currently, James B. Nutter & Company is the #2 wholesale reverse mortgage lender in the nation, processing over 1,000 transactions each month and serving over 10,000 customers and 450 correspondent lenders in 47 states and the District of Columbia. We also originate forward mortgages in 50 states and the District of Columbia."
While we doubt this is anything more than a temporary dilemma, it is certainly having an impact on this company. Feel free to share your comments below or email us with additional information.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.