Here is a fascinating article from Business Week, revealing how a former Subprime Lender went bust and then transformed itself into an AMC:
Take NovaStar Financial (NFI) in Kansas City, Mo. A large subprime lender during the housing boom, NovaStar was disciplined by three states—Massachusetts, Nevada, and Washington—for such infractions as employing unlicensed brokers and charging unlawful fees. Without admitting wrongdoing, the company paid $5.1 million in 2007 to settle similar allegations in a class action brought on behalf of borrowers. After its mortgage business collapsed, NovaStar morphed into an AMC last year by acquiring another company and renaming it StreetLinks National Appraisal Services.
Steve Haslam, NovaStar’s former chief of retail lending, is now CEO of StreetLinks. He defends NovaStar’s past lending as legitimate, noting that the company avoided bankruptcy proceedings, unlike many of its rivals. “We have gone through the fire and come out better for it,” he says. His 100-employee AMC will contract with independent appraisers, Haslam says, paying them generous fees, and will issue a “Certificate of Noninfluence” with every appraisal. “This assures Wall Street and lenders that this appraisal was conducted in an independent fashion,” Haslam says.
Fair pay and no pressure; seems almost too good to be true?