Subprime servicer NovaStar Financial, Kansas City, Mo., has agreed to sell its servicing portfolio to an affiliate of Morgan Stanley & Co. for $175 million in cash.According to the Quarterly Data Report, at the end of June NovaStar serviced $15 billion in subprime loans, ranking 19th nationwide. The publicly traded NovaStar said it would use the proceeds to reduce debt. "As we continue to endure a difficult period for the mortgage industry and the secondary market for mortgage loans, our focus is on managing our portfolio of mortgage securities, along with brokering loans with a retail team that continues to serve homeowners," NovaStar president Lance Anderson said in a statement. NovaStar added that it is evaluating "the impact of this transaction on its servicing organization, including its servicing work force of approximately 300 persons, but expects that substantial reductions in both its organization and work force will result." NovaStar can be found online at http://www.novastarmortgage.com.
NovaStar Selling Servicing to Saxon
October 17, 2007, 2:00 p.m. EDT 1 Min Read
