A company created three years ago as a joint venture between Nationstar Mortgage LLC and a home builder is in the process of winding down.
In January 2013, KB Home announced that an agreement was reached with Nationstar to form a joint venture, Home Community Mortgage LLC.
The move was an extension of an existing alliance that had
Coppell, Texas-based Nationstar as the preferred mortgage lender for the home builder.
But that alliance has apparently run its course.
In its third-quarter earnings announcement, Los Angeles-based KB Home
disclosed that the two companies have started the process of winding down Home Community Mortgage.
The assets and operations of the joint venture are being transferred to Stearns Lending LLC.
“Currently, Stearns Lending is offering mortgage banking services to the company’s homebuyers, and the company and Stearns Lending are working to establish a new relationship,” KB Home stated.
While Nationstar hasn’t reported the level of mortgage originations for Home Community Mortgage, it did disclose a $1.3 billion warehouse facility was maintained for the unit in its third-quarter Form 10Q filing with the Securities and Exchange Commission.
