19 managers opt for severance package
By COCO SALAZAR
6/28/2005

A shakeup at NovaStar Financial's wholesale lending unit has led to the exit of several managers.

Earlier this month, the Kansas City, Mo.-based lender's wholesale division, NovaStar Mortgage Inc., announced to its managers that it would be restructuring the business to maximize efficiency.

Although the employees were offered other internal jobs, 19 decided to take a severance package, company spokesman Mike Enos said.

Managers choosing severance have 60 days from June 10 to remain with the subprime company, Enos added.

NovaStar reported that the average cost of wholesale production rose to 2.78 percent during the first quarter from 2.66 percent a year earlier. About three-quarters of the $1.9 billion originated in the first quarter came from independent mortgage brokers, according to company reports.

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