|Nationstar Mortgage LLC's parent has enlisted Quicken Loans Inc. to refinance and modify its mortgages holdings.
Fortress Investment Group LLC, which manages $35 billion in assets, announced the exclusive joint venture yesterday.
The deal is part of a comprehensive strategy for Fortress' mortgage portfolio and investments.
Through 2,600 Quicken team members working from centralized Web centers, borrowers in all 50 states will be refinanced into a number of loan programs, including conventional, FHA and reverse mortgages.
"The joint venture will be a win-win for both Fortress investors and existing borrowers," Fortress President Pete Briger said in the statement. "This partnership will help bring needed liquidity to homeowners facing increasingly limited options while at the same time providing investors in Fortress funds with a competitive advantage."
The move suggests Fortress-subsidiary Nationstar -- which originates FHA mortgages -- was unable to handle the scale of the Fortress portfolio.
Nationstar has transformed from a subprime lender to an FHA lender. The Lewisville, Texas-based lender dumped its broker business in September 2007 but re-entered wholesale lending one year later. The company said it previously maintained relationships with 3,400 approved mortgage brokers.
Briger noted the venture will team Quicken's "unmatched technology platform" for originations with Nationstar's servicing capabilities.
Quicken reported $18 billion in 2007 originations and boasts $80 billion in production during the last six years.
Quicken founder and Chairman Dan Gilbert said Fortress is a leading investor in residential mortgages.