Monday, March 19, 2007

NovaStar cutting staff

NovaStar is the next mortgage lender to reduce workforce. On Friday, March 16, it was announced that the company is planning some 350 layoffs, or 17% of its staff, in its wholesale loan origination group, including 50 employees at its Kansas City headquarters. Operation centers in California and Ohio will be affected by the cut, too.

The reductions aim to align the company to current market realities and will be implemented gradually, concluding in the second quarter of 2007. NovaStar’s loan servicing organization will not be affected by the reduction.

The lender said it will continue to focus on solid lending guidelines and lower loan origination costs. Shares rose 14.6% to $5.90.

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