By Nationstar Mortgage Holding's (NSM) own admission, they understand why some people got it wrong this morning. It's complicated, they say.
The company announced that it was selling a large portion of its lending operations to Stonegate Mortgage (SGM). A source at the firm said the communications operations there spent today trying to clarify some of the erroneous reports.
So let this serve as proof Nationstar is not getting TOTALLY out of lending. But, it is getting rid of wholesale and some retail.
Seeking Alpha states:
This will result in a headcount reduction of about 1.1K employees and a Q4 expense reduction of about $16M. Annual cost savings are estimated at about $63M.
So what's left? The direct-to-consumer model technically counts as retail — and it will remain.
It's acquisition of Greenlight Financial is also still an asset.
As is it's joint venture with KB Homes.
The company is also maintaining its correspondent lending division as well.
So this blog is just to set the record straight, in case anyone is still confused about what's going on at Nationstar.
