Nationstar Mortgage on the Ropes

Word on the street is that Nationstar Mortgage is beginning to wind down operations, though still kicking to some degree.

They aren’t done yet, but sources say the wholesale department was knocked down to just a few branches recently, and that the retail department was the latest division to see heavy layoffs.

Apparently Nationstar employees received e-mails Wednesday morning that a skeleton crew (is anyone else sick of that term?) would remain to wind down some aspects of their current operations.

I heard multiple offices were shut down the same day the layoffs were announced, and that others were closed months ago as secondary market woes set in, and loan production began to slow.

Earlier this week I added an entry to my list of closed lenders and layoffs, noting that the Nationstar retail center in Denver was shutting down after receiving a tip.

I’ve also heard that only a small handful of branches nationwide remain today in the midst of the subprime blowout, though there are still a lot of question marks as to the status of this company.

Another source has informed me that the origination channel is surviving off Fannie Mae products alone, and may be a thing of the past, though the robust servicing platform could be the lenders’ saving grace.

And I’ve been told that only 10 retail locations remain open after recent closures.

At this point you really have to take a hard look at any company still engaged in subprime lending, as the market can barely sustain Alt-A and prime lending in the current environment.

In July of 2006 Centex Home Equity became Nationstar Mortgage LLC after being sold by parent Centex Corporation to an affiliate of Fortress Investment Group LLC.

Yes, the same Fortress that hired presidential hopeful John Edwards as an adviser.

Nationstar Mortgage LLC is headquartered in Dallas, Texas, and is one of the nation’s leading non-prime mortgage lenders.

Update: Nationstar halts wholesale loan production.

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