NovaStar Wholesale - Wholesale
2007-08-17
stories: chron.com
NovaStar has announced that they are closing their wholesale operations and laying off 37% of its workforce (roughly 500 employees). Per an article on the Houston Chronicle:
Mortgage lender NovaStar Financial Inc. said Friday it is cutting 500 jobs, or 37 percent of its work force, as it stops selling home loans through brokers.
The company said it will begin the cutbacks immediately and complete them in the fourth quarter, with the bulk of the cuts coming at its Kansas City headquarters.
It also said it will close wholesale operation centers in California and Ohio and the head of its wholesale NovaStar Mortgage Inc. subsidiary, David Pazgan, is stepping down.
Pre-tax charges for the layoffs will range between $17 million and $21 million, the company said.
Per an email that was forwarded on to us sent by an ex-NovaStar employee:
Unfortunately, NovaStar decided to close down their Wholesale Operations today and we will no longer be originating loans via the wholesale market. It has been a pleasure working with all of you over the past 5 plus years and I hope you make it through this dip in the industry to come out on the other side for the next wave.
Original posting on Ailing from 2007-08-07
Update 2007-08-07
NovaStar has resumed wholesale.
Previously (2007-08-06):
NovaStar Mortgage Wholesale ceased funding on Friday per the following announcement:
ANNOUNCEMENT
Due to severe dislocation in the secondary market, NovaStar Mortgage Wholesale is temporarily suspending approval and funding activity on all loan transactions that have not been locked via a NovaStar Lock In Confirmation until Tuesday, August 7th, at which time the policy will be reevaluated. Locked loans and loans with docs out will continue to fund as scheduled. This is effective immediately.
New loan applications will continue to be accepted however will be held until the temporary suspension on loan approvals and fundings has been lifted.
We apologize for short notice and will be reviewing market conditions and updating our policy on a daily basis.
If you have any questions, please contact NovaStar Solutions at 877-480-3939 or Novastar Solutions at (877) 480-3939.
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NovaStar Mortgage, Inc. 8140 Ward Parkway, Kansas City, MO 64114
Should any news develop regarding NovaStar, please let us know.
Important: This company is on our list of lending operations that have "imploded" (see also ailing lenders). 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.