NovaStar Sells Servicing Rights to Saxon

Lance Anderson, President and Chief Operating Officer of NovaStar Financial, Inc., announced today that they entered into a final agreement to sell all of it’s servicing rights to Saxon Mortgage Services, Inc.

The Sale for approximately $175 million is expected to close on November 1st of this year. NovaStar Anderson stated “This action is expected to reduce debt and risks related to operating capital needs for servicing loans. As we continue to endure a difficult period for the mortgage industry and the secondary market for mortgage loans, or focus is on managing our portfolio of mortgage securities, along with brokering loans with a retail team that continues to serve homeowners.”

This sale of rights to Saxon will allow NovaStar to make cuts to its servicing organization, including its workforce of approximately 300 people. However they do also expect that substantial reductions in both its organization and workforce will be forthcoming.

To read more about NovaStar Financial, Inc. Agrees to Sell Mortgage Servicing head on over to CNN