Comments on: NovaStar No Longer Fit for NYSE – May Be Delisted

By: Another Chapter in the Slow Death of Nova Star

Another Chapter in the Slow Death of Nova Star — Thu, 15 Nov 2007 03:59:42 +0000

[...] We’ve detailed the painfully slow death of Nova Star here in the past, and one has to wonder how much blood this stone has left in it? Just to boot their shares are most-likely going to be delisted from the NYSE; an announcement on the determination is scheduled for December 5th. [...]

By: Outlook sucks

Outlook sucks — Fri, 02 Nov 2007 03:29:18 +0000

I am a former subprime employee who has been out of work now for close to six months. There are absolutely no jobs out there and the competition for those jobs grows every day….making my outlook even more grim. I have sent out over 100 resumes…..I have a 4 yr college degree but my only choice at this point is to go back to school or take a blue collar job. I blame a lot on the brokers and appraisers who tried every trick in the book to get a shady deal through to make a buck. The borrowers should also have not been so ignorant.

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 18 Oct 2007 22:52:51 +0000

Novastar just settled a class action lawsuit in Federal District Court here in WA state where they “admitted no wrongdoing” yet the evidence was so overwhelmingly against them, they had no choice.

Ought we feel sorry for the managers and business owners who knowingly screwed homeowners and violated state and federal law?

No.

They took a risk. Business is a game and they lost.

Who I do feel sorry for: the production workers of all of these companies who have found themselves out of a job with little notice, no severance package, and no health insurance.

But Dennis, if you’re going to blame the borrower, then please don’t whine about more state and federal laws, higher licensing fees, a higher cost of doing business, harsh broker buyback provisions when loans default, as well as consumer lawsuits.

LOs: you can’t have it both ways…consumer respect and also no accountability to the consumer.

By: RETAIL FUNDING

RETAIL FUNDING — Thu, 18 Oct 2007 20:32:59 +0000

Aaron I?m with you. I?m a Funder and I?m still working but I don?t know for how long. I would never wish unemployment on anybody in the mortgage industry right now. Also you?re so right, there aren?t any jobs out there because believe me? I?ve been looking, Mortgage or not Mortgage, degree or no degree. My best friend and his wife have been out to work for 3 months now. They say jobs are telling them. ?Well since you were in the mortgage business we can?t help you, because we don?t have jobs that start at your rate? even when they do tell the Hr rep that they are willing to take a pay cut. They say ?well the reason a lot of jobs are not interested in mortgage professionals, are because we know you are only here for a year or two? if that, and then you will be out? it?s crazy out there Aaron. I don?t know what you?re beliefs are, but I will keep your friends and everybody in this mortgage mess in my prayers. Good luck to you! Oh yeah Aaron, I wouldn?t worry about people wishing companies would fall, because the good book says you reap what you sow! You can believe it or not?

By: Dennis

Dennis — Thu, 18 Oct 2007 19:43:07 +0000

It is not that I like to see people out of work. But, dealing with wholesale side of Novastar was not enjoyable. But Novastar stopped being a sub prime lender a few months ago. They are doing alt a and Prime now. But as for the people at Novastar, I feel sorry for them. I hate to see most of the companies go belly up. Putting so many people out of work. This really is bad. And to blame all the loan officers for the reason they have bad loans, it is not all their fault. The buyer knew he couldn’t make the payments anyway. So it is their fault……

By: JAG

JAG — Thu, 18 Oct 2007 18:17:36 +0000

All I’m saying is that the writing is on the wall; you can either choose to ignore it or take action. But, either way that still doesn’t change the facts. If that means you have to leave the mortgage industry by all means do so. I would try to “beat the rush” out of the industry.

By: Aaron

Aaron — Thu, 18 Oct 2007 18:04:43 +0000

JAG – Where? in the mortgage industry? You’ve got to be kidding. Let’s go ahead and do some math. 82,000 mortgage professionals have lost their job.. most companies on average are downsizing 10-20%. So I’m sure there are a ton of vacant desks for mortgage companies management positions in the industry. Look if they were loan officers without families i’d have a tendency to agree with you. They could go work for another broker or lender making some ok money. They are middle to upper managment and they have families and obligations. My concern is more for the rooting of the industry to fail. Especially from people inside the industry, seems masochistic to me.

By: JAG

JAG — Thu, 18 Oct 2007 16:20:46 +0000

You know, “Your Friends” can leave and find a new job anytime they want, right?

By: Aaron

Aaron — Thu, 18 Oct 2007 15:59:11 +0000

Dennis – I have several freinds that were just hanging on out their in the call center in KC. I’m hoping there is a good reason your hoping for people to be out of work.

By: Phantom

Phantom — Thu, 18 Oct 2007 11:47:16 +0000

Dennis, it doesn’t make sense that you would be happy about a sub-prime lender in trouble, especially NFI which has out-survived most others without any assistance from “big money” to save their tails. Are you happy that the FHA is now controlling the non-confomring market? Are you happy that the FHA is doing loans way more aggressive than NovaStar and many other companies ever offered? Are you happy that you and other tax paying citizens will suffer the pain of bailing out the government when their “bail out” of borrowers fails miserably. You might want to consider these things and hope that companies like this one continue to find a way to survive.