Friday
April 18, 2014

KB Home Teams With Nationstar for Mortgage Offerings

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KB Home Teams With Nationstar for Mortgage Offerings

KB Home and Nationstar are teaming up so that home buyers will be able to shop for a home and a mortgage all at the same time. 

KB Home, the nation’s fifth largest homebuilder, has announced that it’s partnering with Nationstar Mortgage LLC to form a mortgage company for its buyers. The new company will be called Home Community Mortgage LLC. 

KB Home made Nationstar its preferred lender in March, following MetLife Inc.’s announcement that it would shut down its mortgage origination business. Nationstar will offer financing on-site at KB Home communities. 

“A quality, predictable mortgage process is an essential element” of KB’s business model, says Jeffrey Mezger, KB Home’s president and chief executive officer. “Nationstar’s performance as KB Home’s preferred mortgage lender has already resulted in more consistent execution.”

Home Community Mortgage will begin operating later this year, KB announced. 

Barclays research analysts called the move an “incremental upside to earnings in future years” for KB. While borrowers are free to choose any lender to work with, Barclays says that joint ventures such as the KB and Nationstar one tend to draw financing for 80 percent of the builders’ customers. 

Source: “KB Home Forming Mortgage Firm for Buyers With Nationstar,” Bloomberg (Jan. 22, 2013)