Another lender is singing the mortgage blues and more mortgage brokers are scrambling. Nationstar Mortgage, the subprime unit of Fortress Investment Group LLC said it is no longer accepting new loan applications from brokers, a signal the lender is winding down operations.
Nationstar’s decision to stop all wholesale originations became effective on Friday, according to its Web site. Fortress was not available for comment. Nationstar is the latest in a series of U.S. lenders that have stopped taking loans from independent mortgage brokers, citing problems with underwriting quality and outright fraud.