The former subprime lending subsidiary of Centex Corp. is getting out of the broker business.
Nationstar Mortgage LLC has halted business from all of its wholesale channels, according to a message posted on its Web site.
The Lewisville, Texas-based company said it stopped accepting new wholesale originations on Friday, Sept. 21.
Nationstar was created when hedge fund Fortress Investment Group LLC acquired Centex Home Equity Co. LLC from homebuilder Centex Corp. last summer. Approximately 2,200 people are employed by the company.
Among Nationstar's senior managers were former executives of General Electric Credit -- many of whom worked together subsequently at now defunct Associates First Capital.
Nationstar acquired Champion Mortgage earlier this year. The lender generated an estimated $5.2 billion in originations last year and serviced $10.5 billion in loans as of Dec. 31, 2006. It touted nonprime programs with 100 percent loan-to-value down to a 580 FICO and 90 percent LTVs down to 540 scores. Other programs included stated-income and limited-documentation.
Any approved loan applications will be honored, according to today's posting.
"Nationstar Mortgage is one of the fastest growing non-prime lenders in the country," reads an archived page from its Web site.