Nutter Home Loans, also known as James B. Nutter & Company, is reportedly exiting the mortgage business, according to an article in the
The article claimed one reason for the exit is an ongoing lawsuit brought by the Department of Justice
Nutter stopped originating loans on Oct. 20; according to an industry source, employees were notified six days earlier.
"Sadly, after more than 70 years of helping people across the country achieve the American dream of homeownership, the Nutter family has made the very difficult decision to exit the mortgage business," said President and CEO James B. Nutter Jr. in a statement. "We are currently working diligently to take great care of our many loyal and longtime employees by providing them with well-earned severance pay and access to professional outplacement services that will allow them to pursue other career opportunities."
Nutter Home Loans declared DOJ's charges are completely meritless and is contesting the allegations in court, even as it winds down. But the case remains in the discovery phase, which was recently extended until September 2023.
Nutter "intends to vigorously defend itself, through trial if necessary, and is confident that it will prevail."
At the time it made the decision to close, Nutter was at 128 employees; the company is now down to 98. A small group will remain with Nutter as it continues to fight the lawsuit.
The company confirmed it is selling its servicing rights.
Founder James B. Nutter Sr. was known as a mortgage product innovator looking to provide credit to underserved markets. He was well respected in Kansas City as a philanthropist. Nutter Sr. passed away in July 2017. His son James B. Nutter Jr. currently runs the company.
The eponymous company started in business in 1951. At some point, it made a decision to focus on the reverse mortgage business that contributed to its current legal difficulties. In a pivot, Nutter reorganized into a call center operation that prioritized refinancings, a tough business to be in given the
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 did have run-ins with regulators, including a 2014 settlement over charges Nutter
Prior to that, Nutter entered into
Nutter no longer originates HECMs, and only had six endorsements for federal fiscal year 2022 (the last reported activity was in April), according to FHA data.
This shutdown joins a growing list of companies deciding to fully exit or reduce mortgage banking operations, including
