Nutter Home Loans, also known as James B. Nutter & Company, is reportedly exiting the mortgage business. Kansas City Star.
The article claimed one reason for the withdrawal was an ongoing lawsuit filed by the Justice Department. September 2020 It alleges violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the False Claims Act in connection with the creation of a Federal Housing Administration-guaranteed home security lien.
National Mortgage News left a message for Kansas City, Missouri-based Nutter asking for confirmation of the report. But Nutter notified employees of his decision to close on Oct. 14 and is selling the rights to the service, according to industry sources speaking for background. Checking the Missouri Worker Adjustment and Retraining Notification website, there is no entry for his Nutter for 2022.
Nutter’s web page was still active as of the morning of November 1, but the company hadn’t updated its Facebook and Twitter accounts since August.
The company’s founder, James B. Nutter Sr., was known as an innovator in mortgage products that sought to bring credit to an underserved market. He was respected in Kansas City as a philanthropist. Nutter Sr. He passed away in July 2017. His son James B. Nutter Jr. now runs the company.
The eponymous company began operations in 1951. At some point, Rivers decided to focus on his mortgage business, which has now caused him legal troubles. As a tipping point, Nutter reorganized into a call center operation that prioritized refinancing. Soaring interest rates.
HGTV personality Tamara Day has been a spokesperson for the company since September 2020.
Nutter Home Loans only has 14 loan officers, according to the Nationwide Multistate Licensing System.
In the past, Nutter has had conflicts with regulators, including a 2014 settlement. neglected due diligence When undertaking HECM. That NMLS entry has a 2012 settlement. With 10 state regulator The reverse mortgage program cost the company over $409,000.
Before that, Nutter consent decree In May 2009, we discussed data security issues with the Federal Trade Commission.
Nutter is no longer issuing HECMs and had only six approvals in the 2022 federal fiscal year (the last reported activity was in April), according to FHA data.
The closure joins a list of companies that have decided to exit or wind down their mortgage banking business entirely. Finance of America, BayFirst Financial, First guarantee and sprouttogether wholesale trade at loanDepot, AmeriSave, Mountain West, and guaranteed rates.