NovaStar Financial Inc., a residential mortgage portfolio manager headquartered in Kansas City, Mo., has entered into a definitive agreement to sell all of its mortgage servicing rights and servicing advances relating to its securitizations to Saxon Mortgage Services Inc., a Fort Worth, Texas-based servicer of mortgage loans, for approximately $175 million in cash – subject to certain adjustments at closing.
NovaStar says it will use the proceeds from this transaction for debt reduction. The agreement is expected to close on November 1, subject to the satisfaction of various closing conditions, including the receipt of certain third-party consents. Saxon is not acquiring the NovaStar servicing platform or any other asset, nor is it assuming any of NovaStar's pre-closing liabilities, NovaStar notes.
