For the second time in the past year, hundreds of mortgage jobs are being eliminated by Flagstar Bancorp Inc.
The Troy, Mich.-based company in July disclosed that it would be laying off 324 employees in mortgage servicing.
Those job cuts were prompted by a decision by Flagstar to outsource its non-core default mortgage servicing operation.
On Thursday, Flagstar announced that it has decided to eliminate another roughly 600 mortgages jobs.
The layoffs are part of an organizational restructuring being implemented to reduce expenses in light of today’s operating environment.
“In 2013 we made important progress in resolving certain legacy issues, and we are now focused on further strengthening our financial and operational foundation … and this restructuring will align our infrastructure with today’s business environment, including the significantly reduced mortgage origination market,” Flagstar President and Chief Executive Officer Alessandro DiNello said in the announcement. “The decision to downsize our workforce was not made lightly, but is a necessary step on the path to achieving the company’s long-term goals.”
Flagstar, which expects to save $40 million a year from the move, reported a staff of 3,428 employees as of Sept. 30, 2013, including 359 loan officers and account executives.
