Nationstar Mortgage LLC is financing nearly 60% of KB Home’s new orders, according to the homebuilder’s chief executive.
KB Home’s built-to-order approach “cannot hit its stride without a reliable mortgage partner to manage our starts and also ensure timely closings,” said president and CEO Jeffrey Mezger.
“We are already experiencing more predictable deliveries in a compressed timeframe due to this partnership,” he added.
Before Nationstar became KB Home’s preferred lender in March 2012, it used to take 24 days to fund and close a loan after a home was completed.
“In the most recent quarter, Nationstar has shortened it to 13 days,” Mezger said at a May 21 JPMorgan homebuilding conference.
KB Home and Nationstar are currently working on creating a joint venture called
“It will further align the interests of our two companies. And raise capture rates,” Mezger said.
Nearly 80% of KB Home sales are to first-time and first move-up buyers.
