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NovaStar Cuts Spare Servicing.

Mortgage Servicing News

| May 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Kansas City, MO -- Subprime funder NovaStar Financial recently trimmed its workforce by 17% - 350 positions - citing the changing landscape of the mortgage industry.

The nation's 16th largest subprime lender said the layoffs will affect its wholesale group "and related functions" including staffers at its headquarters here and at operation centers in California and Ohio.

Its loan servicing platform is not affected by the job cuts, it said. According to the Quarterly Data Report, NovaStar is the nation's 21st largest subprime servicer with $16.5 billion in receivables.

Like many subprime lenders, NovaStar has tightened its ...

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