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Novation Companies, Inc. Message Board

  • johnb9675 johnb9675 Oct 26, 2004 1:35 PM Flag

    A visit to an ex-Novastar office

    Today I stopped by an office that had been a Novastar mortgage broker and now just says "Mortgages". I asked them why the change. They explained that to be a Novastar brokerage, they had to be licensed in 7 states and the licensing fees were too high.

    Now that they are independent, they said that they only needed to be licensed in New York.

    They stated that they still work with Novastar on many of their loans and that other than the name and the licensing, they ran the business pretty much the same as before.

    Maybe this explains why Novastar is continuing its high growth as they reduce the number of 'Novastar offices'. Business is much the same in the old offices. They just don't have the name on the door.

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    • JohnB:

      Thanks for sharing that info. It just confirms what a hit piece Jonathan Weil's April article was. It is easy to sit behind a desk at the WSJ and re right an article that was handed to you. Novastar, on the other hand, has to run a business on a daily basis
      throughout the states. Each state has it's own hodge podge of regulations. Just to keep up with each states regulations is a full time job.
      It's really easy when someone hands you a story.

      Hank

    • You did more investigation and analysis than some "reporters" and "analysts" have done. A bit like Tom Taylor's Open-air Analysis approach.

    • Today I stopped by an office that had been a Novastar mortgage broker and now just says "Mortgages". I asked them why the change. They explained that to be a Novastar brokerage, they had to be licensed in 7 states and the licensing fees were too high.

      Now that they are independent, they said that they only needed to be licensed in New York.

      They stated that they still work with Novastar on many of their loans and that other than the name and the licensing, they ran the business pretty much the same as before.

      Maybe this explains why Novastar is continuing its high growth as they reduce the number of 'Novastar offices'. Business is much the same in the old offices. They just don't have the name on the door.


      --------------------------------------------------------------------------------

      would you mind if i post this on the v.f. board? there's a poster over there who says he's a long but questions how nfi can still make money with fewer offices.
      jeff