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Falling Originations Contribute to Massive Mortgage Layoffs from MortgageDaily.com
DALLAS — (Sept. 10, 2007) Declining production is contributing to massive job cuts at U.S. mortgage lenders. Countrywide Financial Corp. capped last week off with the disclosure it is preparing for more than 10,000 layoffs, according to https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.
Calif.-based Countrywide warned late Friday it will lay off as many as 12,000 people this year. The move comes on top of 900 mostly production job cuts announced Wednesday.
Last month, Countrywide confirmed more than 500 subprime employees were released, including 400 from Full Spectrum Lending. Toward the end of the first quarter, 108 wholesale subprime sales employees were laid off.
The job cuts track worsening originations, which Countrywide projects will fall by one-quarter next year. https://www.mortgagedaily.com/LayoffsCountrywide090707.asp
IndyMac Bancorp Inc. disclosed Friday it plans to eliminate another 1,000 jobs. The workforce reduction follows 400 mostly support employees laid off in July — though the company has hired former retail originators from American Home Mortgage Investment Corp. and Charter Funding of Hawaii.
IndyMac said it expects production to drop by around half in the fourth quarter as a result of its shift to conforming originations from primarily Alt-A business — a segment that represents 90 percent of its fundings. https://www.mortgagedaily.com/LayoffsIndymac090707.asp
National City Corp. said Thursday it eliminated over 1,000 positions as part of “aggressive steps” it has taken because of changing market conditions.
National City Mortgage started reducing its nonconforming operations this month “in light of expected lower demand for these types of products going forward.” https://www.mortgagedaily.com/LayoffsNationalCity090607.asp
Lehman Brothers said Thursday it has restructured its mortgage units and eliminated 850 mortgage jobs.
The restructuring of its residential origination business has been completed as the unit downsized to the current market, Lehman said. https://www.mortgagedaily.com/LayoffsLehman090607.asp
NovaStar Financial Inc. said last Tuesday it will sharply reduce retail lending operations — cutting that staff by about 275. NovaStar cited a deteriorating secondary market for the reduction. https://www.mortgagedaily.com/ClosureNovastar090407.asp
More mortgage employment news at:
https://www.mortgagedaily.com/MortgageEmployment
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