NOVASTAR MORTGAGE

Everything you have ever read about Novastar Mortgage Co is true. They hire & fire at will with no rhyme nor reason as to why. It was like stepping into the twilight zone or being recruited by the Stepford wives. If you think something is too good to be true, believe that it is.

My personal experience with Novastar (employed 1.5yrs). I liked the internal staff of people, and I really liked the acct exec's in the fields (Texas). I relocated to TX for a field underwriter position and 20-days after relocating, the broker stopped 'marketing' Novastar's product and said I was going to be 'out of a job'. Novastar honored their end. They offered to bring me back to home or told me I could stay and they would honor the contract of one year employment. We as the reader can't be sure about Novastar's current status...they might be going thru hard time (what subprime lender isn't) or it could have just been the employee. Not everyone will like every company (mortgage industry or other) so it's up to the reader to determine if FACT is FACT or blown-up emotional frustration. Novastar, while not perfect, was very good to this girl.

Anonymous said: My personal experience with Novastar (employed 1.5yrs). I liked the internal staff of people, and I really liked the acct exec's in the fields (Texas). I relocated to TX for a field underwriter position and 20-days after relocating, the broker stopped 'marketing' Novastar's product and said I was going to be 'out of a job'. Novastar honored their end. They offered to bring me back to home or told me I could stay and they would honor the contract of one year employment. We as the reader can't be sure about Novastar's current status...they might be going thru hard time (what subprime lender isn't) or it could have just been the employee. Not everyone will like every company (mortgage industry or other) so it's up to the reader to determine if FACT is FACT or blown-up emotional frustration. Novastar, while not perfect, was very good to this girl.

I am also a subprime/nonconforming underwriter recently unemployed due to the industry / employer shut down. I have 12+ years experience. Can you advise what the prospects / opportunities appear to be that you are seeing & what your ball park salary is? I am getting frustrated out here & the pay I am seeing sucks compared to what I am used to. Thanks.

It's a horrible outlook right now. Lenders who are advertising are just on hiring freezes. It's a shame what effect the industry is having on people and their families. I have friends who have been laid off twice working for different lenders in the last 4-months. I was laid-off from a subprime lender who closed their doors last September and remained unemployed for 5-months. I was BLESSED when my job offer came along. It wasn't a posted job, it wasn't a position that I had any specific experience in, it was just by grace that it was even handed to me. I have been on-line almost daily since then just continually monitoring the employment market. To be completely honest, I am trying to jump off of the mortgage-ship and into the insurance. Subprime lenders don't like to hire A-Paper underwriters because they can't think outside of the box when a credit score is under 680. A-Paper can't even fathom hiring a subprime underwriter because we are just wreckless! Afterall, what right-minded person would give a 500-fico score a $180k home loan on an 80/20 IO ARM with stated income; receptionist for 12yrs at $5000/mo. Good luck to you in your job search. I like the search enging www.indeed.com for researching mortgage lending jobs. It's been the most efficient.

CURIOUS said:
I am also a subprime/nonconforming underwriter recently unemployed due to the industry / employer shut down. I have 12+ years experience. Can you advise what the prospects / opportunities appear to be that you are seeing & what your ball park salary is? I am getting frustrated out here & the pay I am seeing sucks compared to what I am used to. Thanks.

Best of luck to you in your new line of work and thanks for the information. It's such a shame that subprime underwriters have such a black mark right now because we underwrote to the guidelines the secondary market investors offered. Due to their insatiable appetite for high rates and lax guidelines they got a belly full & now want to point the public finger of responsibility to the underwriters instead of where it belongs - themselves.

You are absolutely correct, the underwriters ended up being the "fall guy" as well as getting the short end of the stick, pay cuts, & in some cases loosing their jobs.

I have been in mortgage banking for 25 years and have never seen it like the way it is now. Employees of sub prime lenders have gotten the blame, not the sales staff or upper echelon managers, VP's and owners of these companies. The problem is very simple, greed. IO loans for stated borrowers at low FICO'S and high LTV'S/CLTV'S have put borrowers in postions they cannot afford. Unless you are in a profession that is not affected by layoff's, closing's (ex: Dr, Lawyer) you will get burned. The funny thing is that these owners are blaming market conditions, not the fraud perputated by some inside management. I quit a job when a new VP was hired. This 'person' had a reputation for unethical lending and was hired to increase volume. This 'person' had already tanked his own company and another major lender was in trouble when hired. I had numerous calls and emails from employees and lenders I used to work with who were trying to tell management about the loans that were being approved to no avail. One sad comment was that this 'person' told an underwriter (in front of a witness) that the price for a fraud loan in the company was 3% discount to the company. I am disgusted with this lack of ethic and integrity. Owners you have no one but yourselves to blame. This company closed its' doors after 2 yrs with major warehouse debt and laid off 80 employees. The owner still states it was market conditions.

How does someone get a job as a mortgage underwriter ?

I worked for the local newspaper in town, for the last 6 years, in a management capacity. I was downsized out of my job, a couple weeks ago. I have a B.A. degree in Marketing.

However, I'm starting to think that people become "type-cast" like actors. Maybe a bank would hire a recent college graduate for this type of job, before they would hire someone with the same educational background, but a few years work experience, in an unrelated field.

ToledoGuy in Toledo, Ohio said: How does someone get a job as a mortgage underwriter ?

I worked for the local newspaper in town, for the last 6 years, in a management capacity. I was downsized out of my job, a couple weeks ago. I have a B.A. degree in Marketing.

However, I'm starting to think that people become "type-cast" like actors. Maybe a bank would hire a recent college graduate for this type of job, before they would hire someone with the same educational background, but a few years work experience, in an unrelated field.

If you are looking for stability in your next career - mortgage underwriting is probably not a good move for you in this market environment. Also - lenders do not hire anyone inexperienced for a position with this much influence on the reputation, bottom line earnings, and future success (or ultimate failure) of their company. It takes many many years in the business to develope the necessary knowledge & gut instinct. Most of the underwriters come with a strong background in Finance or Legal/Loan Quality review. Another avenue is to work your way up to a processing position and establish a stong knowledge base and an eagerness for more responsibility - doing an exceptional job preparing loan packages and prescreening the file for fraud / inconsistancies prior to the underwriter's review will get noticed by your most important ally. The current underwriter(s) often have the most say in who is capable and deserving of being mentored for the position. Best of luck to you in seeking your next career.

I have been an underwriter (off and on due to industry fluctuations) since 1982, and I think it's about time someone said "enough!" to the insane way this industry is run. How many of you underwriters have had loans that you turned down because they were clearly fraudulent approved by management? I would really like to hear the experiences of other underwriters, and talk about the concept that if underwriters had more power (could not have their decisions overturned at will) that this current real estate lending "crash" might never have happened.

CURIOUS in Virginia Beach, Virginia said: If you are looking for stability in your next career - mortgage underwriting is probably not a good move for you in this market environment. Also - lenders do not hire anyone inexperienced for a position with this much influence on the reputation, bottom line earnings, and future success (or ultimate failure) of their company. It takes many many years in the business to develope the necessary knowledge & gut instinct. Most of the underwriters come with a strong background in Finance or Legal/Loan Quality review. Another avenue is to work your way up to a processing position and establish a stong knowledge base and an eagerness for more responsibility - doing an exceptional job preparing loan packages and prescreening the file for fraud / inconsistancies prior to the underwriter's review will get noticed by your most important ally. The current underwriter(s) often have the most say in who is capable and deserving of being mentored for the position. Best of luck to you in seeking your next career.

excellent advice. Well said

what is the base pay for a loan officer for novastar

DEBBIE said: Everything you have ever read about Novastar Mortgage Co is true. They hire & fire at will with no rhyme nor reason as to why. It was like stepping into the twilight zone or being recruited by the Stepford wives. If you think something is too good to be true, believe that it is.

I worked for NovaStar several years ago. They were an excellent company to work with. I was with them for over two years. I was provided excellent training. If ever I had concerns about pre-underwriting a file, I could contact my senior underwriter for advice and she would assist me in determining how to proceed with the file. I was invited to their FastDoc program and never had a kick back or problem with the file. I underwrote the file on my end and sent the file directly to docs. It was reviewed by my senior underwriter and generally closed within 2 to 3 day for purchases and refinances. I am not sure if they still have that type of program, but I was greatful for all training they provided me.

I did leave my broker's office to underwrite and have been underwriting for the past three years in A - Alt-A guidelines. I enjoyed underwriting for NovaStar in sub-prime. It did give me a chance to work in an alternative market place. I feel that it gave me a well rounded underwriting experience.

As far as hire and fire, if you knew what you were working with and who you were working for, there shouldn't have been a hire and fire problem.

If the hire and fire is because of the down turn of the market, then it could be said that all the companies are going to have a bad rep out there. I have been through 3 branch closures and it wasn't because of the underwrites or low productivity in the branches, it was because the corporate offices were downsizing all of their divisions and that is the name of the came in corporate america.

Everyone should know that the mortgage industry is volatile. We are all replaceable regardless of experience and skills set.
This is also a humbling experience and unfortunately many of us lost our jobs. Experience underwriters have great analytical skills and this is one qualificaion that can prove useful and effective. Keep in mind that most companies these days are hiring those who have very strong and solid sales skills - and of course most likely a commission base income.

I am currently suing NovaStar for refusing to close a refinancing. I am led to believe that their office in Orange County, California is closed.

The most recent "position" by NovaStar is that they NEVER lock any loans.

The Loan Officer that worked diligently to close my loan was fired at the time my loan was to have closed. NovaStar refused to assign a "replacement" Loan Officer, and totally terminated all communications by indicating that they had turned my file over to legal.

Is there any way you would be willing to assist me in locating some former employees of the California office? Or providing me with proof that NOvaStar did LOCK RATES?

Thanks....and I look forward to talking to you.

Michigan in Clinton Township, Michigan said: I have been in mortgage banking for 25 years and have never seen it like the way it is now. Employees of sub prime lenders have gotten the blame, not the sales staff or upper echelon managers, VP's and owners of these companies. The problem is very simple, greed. IO loans for stated borrowers at low FICO'S and high LTV'S/CLTV'S have put borrowers in postions they cannot afford. Unless you are in a profession that is not affected by layoff's, closing's (ex: Dr, Lawyer) you will get burned. The funny thing is that these owners are blaming market conditions, not the fraud perputated by some inside management. I quit a job when a new VP was hired. This 'person' had a reputation for unethical lending and was hired to increase volume. This 'person' had already tanked his own company and another major lender was in trouble when hired. I had numerous calls and emails from employees and lenders I used to work with who were trying to tell management about the loans that were being approved to no avail. One sad comment was that this 'person' told an underwriter (in front of a witness) that the price for a fraud loan in the company was 3% discount to the company. I am disgusted with this lack of ethic and integrity. Owners you have no one but yourselves to blame. This company closed its' doors after 2 yrs with major warehouse debt and laid off 80 employees. The owner still states it was market conditions.

Michigan in Clinton,
Of all the comments I read, you pointed out the reason why all of us in the mortgage industry are in a position that could have been prevented.
"Greed" summarizes it all.
I agree that the underwriters follow the guidelines written for the products and programs created by the investors, but they also know that there are still risk involve particularly on subprime.
Everyone involve in the transaction of a subprime loan needs to take accountability.

As an underwriter, I cannot tell you the number of times I have turned down loans -- either for just plain bad loans or for outright, egregious fraud, only to have my decision overturned by managers. I'm sure there were many underwriters and employees who did contribue to the problem, but certainly not all. I also think the problem was exacerbated by people with a serious lack of experience -- if anyone has ever lived through a real estate crash, you have a perspective that is far different from someone just got into the business and only knows the highs. If you have ever been through a real estate crash -- and they seem to happen fairly regularly -- you don't want to ever go through it again. I think just about the last people you should blame this on are the underwriters.

It really does not matter if Novastar locked loans or not. Your loan can be declined and cancelled at at moment during the process.....even after the funding has taken place. I was an underwriter for Novastar. if they found something they they beleived to be fradulent, they can pull the money back. Locking a loan and closing are two different things.... They did lock loans, but only as a courtsey.
Good luck with your suit. I doubt it will go anywhere.