|
|
| The closing of a national home builder financing division will result in more than 150 layoffs at First Horizon National Corp.
The Memphis, Tenn.-based company announced today it would discontinue its national home builder and commercial real estate lending through its First Horizon Construction Lending offices. The move will result in the elimination of 160 positions, Construction Lending Manager Dick Powell said in an e-mail statement to MortgageDaily.com. The jobs will be eliminated over a 12-month period. “We have a plan in place to work with our national construction lending employees and customers to make an orderly transition out of these business channels,” First Horizon Chief Executive Officer Jerry Baker stated in the announcement. Going forward, construction lending will only be offered primarily in Tennessee and the Southeast region through First Tennessee Bank, today’s announcement said. The move is part of a planned $2 billion reduction in its national real estate portfolio, Baker said. Earlier this month, First Horizon reported pre-tax mortgage banking losses of $248.6 million for the fourth quarter. Baker noted in today’s announcement that additional reserves had been added to reflect expected losses on loans originated through these business channels. During September, First Horizon announced it would will eliminate up to 50 percent of its mortgage sales force, reduce support staff and close under-performing mortgage branches. That move was expected to result in 15 branch closures over the next quarter and layoffs of about 1,500 out of 5,000 employees in the mortgage business, Baker said at a Lehman Brothers conference at the time. In its fourth quarter earnings report, the company said employee count was 9,941, including 1,696 mortgage sales employees, as of Dec. 31. |
|
First Horizon profile next story
back to current headlines
