Some NovaStar Net Branches to Shift to 1st Metro

Charlotte, N.C.-based 1st Metropolitan Mortgage has entered into a transaction with NovaStar Home Mortgage Inc., Kansas City, Mo., whereby some NovaStar net branches will become 1st Metropolitan MetroBranches by the end of the year.In addition, through a special marketing agreement, NovaStar Financial Inc., the wholesaler parent of NovaStar Home Mortgage, will become a preferred lender for nonconforming mortgages originated by 1st Metropolitan. The NovaStar Home branches involved have traditionally originated mostly conforming mortgages, 1st Metropolitan said. The branches will be able to seamlessly move their pipeline of loans in progress from NovaStar to 1st Metropolitan. "We want to minimize the effect that a deal such as this could have on the families involved because we know their livelihoods depend on uninterrupted loan production," said Daniel Jacobs, chief executive of 1st Metropolitan. The company did not specify how many NovaStar branches are being transferred.