ResMAE Restructure Results in Reductions

At least 110 employees received pink slips Wednesday, when the subprime lender announced it restructured its sales and operations organizations to address market conditions.

The reorganization will consolidate into its national operations center in Brea, Calif., the work of four regional operations facilities located in Rancho Cordova, Calif.; Sunrise, Fla.; Schaumburg, Ill.; and Dallas, Texas, according to the announcement.

As a result, 63 workers in Dallas will be laid off on Nov. 18, including 23 account executives, 11 underwriters, 11 client representatives, and several funders, quality control employees and operations and area sales managers, according to a Workers Adjustment and Retraining Notification letter filed with the Texas Workforce Commission.

ResMAE “must realign its sales force, consolidate its operation, and reorganize its corporate support in order to effectively compete and become an industry leader,” the company said in the letter.

In Schaumburg, the positions of 47 workers will be eliminated that day as well, said Mark Harris, spokesman for the Illinois Department of Commerce and Economic Opportunity. He noted ResMAE filed the WARN on a voluntary basis, considering the state requires a 60-day advance notice on layoffs of 50 or more.

It is unclear how many workers will be affected in California and Florida. ResMAE did not return a call for comment prior to MortgageDaily.com’s deadline.

“While these are difficult times for the entire mortgage industry, ResMAE is committed to deepen our product menu by moving up the credit curve,” Wednesday’s announcement read. “We continue to invest significant capital and resources to build a best-in-class servicing platform and we are currently building a new state of art origination technology platform.”

The wholesale lender emerged from Chapter 11 in June as an entity of RMC Mortgage Holdings, an affiliate of Citadel Investment Group LLC.

A month earlier, it had completed laying off 198 employees in California that had received advance notice toward the end of March, the same month Citadel had agreed to acquire certain assets of ResMAE.