JB Nutter announced today that it would be extending its moratorium on new files until March 2009. The Kansas City, MO based lender originally sent out an email announcing the moratorium to correspondents on January 9th, citing a funding bottleneck that was supposed to be cleared up by the end of last week.
According to an email sent out today, JB Nutter’s warehouse lenders have forced the company to reduce the number of files it can close each day. Below is a copy of the email:
Re: Extension of New File Moratorium
To our Valued Correspondents:
Warehouse lending issues have forced us to reduce the number of files we can close each day. As such, we must extend our moratorium on new files until March 2009. We advise that you seek out another wholesale lender for the time being and we will keep you posted when new file submissions can resume.
With respect to existing loans in the pipeline, James B. Nutter & Company remains fully committed to closing every one of these loans as soon as possible. These loans have the highest priority and we are working diligently to close them.
We cannot say enough how thankful and appreciative we are of your business, and we apologize for this moratorium which was caused by national events beyond our control. Your professionalism during these unique and challenging times has been an inspiration, and we are chomping at the bit to resume normal operations. Stay tuned!
JB Nutter was the second largest wholesale reverse mortgage lender according to data provided by RM Insight earlier this year. The company was able to gain ground on Financial Freedom and I expected them to surpass them in 2009.
Now, that will be a little more difficult but I don’t think you can count them out totally. As far as wholesale lenders are concerned, their reputation for being great to work with was unmatched even though their technology is a bit out dated. Will they be able to get customers back once things are straightened out?
Your guess is as good as mine… if you’re looking for another wholesale lender check out the link below.
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Couldn’t agree more, this will shake the industry.
We love Met Life for our reverses, but have been using Nutter extensively also. However, after reading this news from Nutter, I’d like to talk with a broker who has already done a reverse for purchase HECM.
I may switch it up and concentrate on that program once the new FHA Mortgagee Letter comes out.
Does anyone know when that will be?
Please contact me at
pinkintelligence@earthlink.net.
Thank you.
Stephanie
Naples, Florida
The perils of warehouse lines damaged a lot of forward lenders the past two years and we are finally seeing it in the reverse world.
Warehouse lenders worry about lenders with large lines and limited captial. That may not be the case with Nutter but…..one has to wonder. The hope is that they right the ship as they must be losing money by the day.
wonder if its all the forward mortgage people.plus the part time and inssurance agents. and lose underwriting has caused problems.
Bank of America is hands down the best option out there right now. The customer service is great, turn times are fast and they let me send loans that I didn’t print from their system. Sad to see Nutter go though 🙁