Nationstar Mortgage (NYSE: NSM) has laid off roughly 160 employees in its performing servicing division across three states, reports Inside Mortgage Finance.
Those affected by the job cuts include Nationstar employees in Scottsbluff, NE; Lewisville, TX and 20 in Littleton, CO, as confirmed by a spokesman for the nonbank servicer, who told IMF that prior to the announcement, the company had about 6,000 employees.
“Although our servicing pipeline remains strong, we’ve improved efficiency through increased staff training, improved processes and additional technology solutions,” the spokesman said to IMFnews.
Additionally, the spokesman added that Nationstar is making “this change to better align our staffing with our current needs.”
Nationstar’s mortgage servicing platform, along with its originations and technology segments boosted the company to a net revenue of $67 million for the second quarter, a 174% increase compared to $24 million recorded in the prior quarter.
The company, whose reverse mortgage servicing portfolio stands around $30 billion in unpaid principal balance (UPB), announced in June that it would no longer originate reverse mortgages through its Greenlight Financial platform.
One of the largest servicers in the U.S., Nationstar’s residential mortgage servicing portfolio has topped over $384 million in UPB as of March 31, 2014.
While there has been less job cutting at nonblanks over the past year compared to top-ranked depository lenders/servicers, IMF suggests that may change as servicing growth becomes more difficult to achieve.
Read more at IMFnews.
Written by Jason Oliva