Business Closings Drive Mortgage Layoffs

Many of the recent layoffs in the mortgage industry have been driven by decisions to close down mortgage-related businesses. Hundreds of other recent layoffs are the result of expense cutting, mergers and outsourcing.

MetLife Inc. announced in January a decision to close down MetLife Home Loans and said last month that it would shutter its reverse mortgage business which is run out of MetLife Bank. A spokesman for the life insurer said that the maximum number of layoffs tied to the closing of the home lending business would be 4,300, while the reverse mortgage layoffs are expected to reach 500.

A home loans unit in Pleasanton, Calif., laid off 147 employees on March 30, MetLife said in a WARN filing. Another 54 Agoura Hills employees were terminated on March 31. In addition, 118 Irvine jobs were eliminated on March 30.

MetLife filed a WARN with the state of Florida disclosing 77 layoffs in Maitland from March 31 through May 31.

A WARN notice filed with the New York Department of Labor indicated that 25 reverse mortgage employees would be laid off by MetLife on July 31 in Hauppauge. Additional filings with the state indicated that 134 home loans employees in Newburgh would be let go between June 31 and Dec. 31, and 55 Hauppauge jobs would be eliminated on April 30.

In Morristown, N.J., MetLife plans to layoff 496 people on June 30, a WARN filing said.

Another 64 MetLife Home Loans employees were laid off on March 30 in Pittsburgh, a WARN filing in that state said.

As part of its Project New BAC announced last year, Bank of America Corp. plans to layoff as many as a 30,000 people. WARN notices provided to the state of California said that 450 Concord jobs were eliminated on May 20, another 60 employees were laid off in Los Angeles on March 31 and a hundred more Los Angeles jobs were eliminated on May 31.

In North Carolina, BofA disclosed in a WARN filing that 80 employees would be laid off on June 30 in Mecklenburg County — home to its headquarters in Charlotte.

BofA advised the Florida Department of Economic Opportunity that 62 employees were laid off in Jacksonville on July 30.

PMI Mortgage Insurance Co. was ordered by the Arizona Department of Insurance to stop writing new mortgage insurance policies in August 2011. That was followed by the November 2011 bankruptcy filing by former parent The PMI Group Inc. PMI notified the state of California that 155 Walnut Creek employees were laid off on March 6.

Aurora Bank FSB said in March that it would end new origination activities and sell its mortgage servicing portfolio.

Aurora filed a WARN notice indicating that 17 New York employees would be laid off in July, while another notice said three New York employees were being let go on June 9.

In California, Aurora Bank notified that state that five Lake Forest positions will be eliminated on July 7, while Aurora Loan Services filed a notice that said 103 employees were being laid off on May 25.

The PNC Financial Services Group completed its acquisition of RBC Bank’s U.S. operations on March 2. PNC notified the North Carolina Department of Commerce that 196 Wake County employees and 425 Nash County employees were laid off on March 16.

HSBC filed a WARN notice on April 2 saying that it was laying of 45 New York employees on June 30. HSBC Bank USA, N.A., subsequently disclosed that it would outsource its origination and servicing — a move that is expected to result in 200 Depew, N.Y., layoffs.

Citigroup Inc. Chief Executive Officer Vikram Pandit told investors in December that 4,500 jobs would be eliminated over the following several quarters. Citi advised the state of New York that 413 employees in the New York City area would be laid off in the fourth-quarter 2011.

Steven J. Baum P.C., a document preparation law firm that shut down as a result of the robo-signing scandal, notified the state of New York that 67 Amherst employees would be terminated on Feb. 20.

In Santa Ana, Calif., CoreLogic Inc. notified the state that 72 employees were being let go in the first quarter and another four jobs were being cut in the second quarter. CoreLogic reported losses of more than $60 in 2010 and also in 2011.

Wells Fargo notified California’s Employment Development Department that it planned to layoff 318 “customer connection” employees in Santa Ana on May 25.

The Pennsylvania Department of Labor & Industry was notified that Wells Fargo was letting 73 employees go in Chester on April 2.

On April 15, Wells Fargo terminated 54 Kansas City, Mo., employees, according to a WARN filing in that state.

Credit Suisse Securities (USA) LLC advised the state of New York that 268 positions in the city of New York would be eliminated between Nov. 28, 2011, and March 30 of this year.

The closing of 21 branches during the second quarter by Associated Bank will result in the elimination of 200 jobs in Illinois, Minnesota and Wisconsin, the Journal Sentinel reported.

Maryland’s Department of Labor, Licensing and Regulation was advised by Susquehanna Bancshares Inc. that 160 employees throughout the state would be laid off on Feb. 17.

In Redondo Beach, Calif., Comerica Bank will be eliminating 74 jobs on June 15, according to a WARN filing.

TCF National Bank advised the state of Illinois that 101 positions in Schiller Park would be cut between March 31 and May 15. In addition, another 103 employees were laid off on March 31 in Willowbrook.

Fireside Bank filed a WARN notice indicating 91 Pleasanton, Calif., employees would be laid off on April 30, while another 30 were being terminated on May 31 and 30 more were being let go on June 29.

During November, Air Academy Federal Credit Union of Colorado Springs laid off 19 people, Credit Union Times reported. The jobs cuts were the result of slower mortgage lending.