Nationstar Pushing into Purchase Mortgage Business

The origination business at Nationstar Mortgage Holdings is currently benefiting from strong refinancing activity but the giant servicer also is focusing on the purchase mortgage side.

“We expect to capitalize on our large refinance opportunities and the return of the purchase mortgage market,” Nationstar chief executive Jay Bray told analysts and investors Tuesday morning during a conference call on the company’s 2Q earnings.

The CEO noted the Lewisville, Texas, company has increased incentives to “drive more purchase money [originations] in our wholesale and correspondent channels.”   

Nationstar also wants to use newly acquired Greenlight Financial Services to increase its purchase mortgage originations. Based in Irvine, Calif., Greenlight originated nearly $500 million in loans in July and nearly 90% were refis.

“They do have some viable purchase programs,” Bray said. And Nationstar is incentivizing Greenlight’s programs to increase purchase loan production. A wholesale and direct-to-consumer lender, Greenlight currently operates in California and neighboring states. Bray intends to expand its reach.

“Greenlight has done an excellent job of targeting higher FICO, higher credit borrowers,” the CEO said. “I think they can continue to do that as we expand that channel nationally.”