Mortgage Daily Logo
mortgage news from industry experts

Layoffs at Bear Units

Layoffs at Bear Units

Two mortgage operations centers shuttered

August 17, 2007


photo of Coco Salazar
In addition to market conditions, e-mortgage technology led Bear Stearns Companies Inc. to layoff hundreds of mortgage employees this week.

Bear closed two mortgage operations centers and reduced staff by 240 on Wednesday, Bear spokeswoman Renu Aldrich told today.

About 140 of the affected employees worked for Bear Stearns Residential Mortgage Corp., which closed a facility in King of Prussia, Penn.

The other 100 were employees of Irvine, Calif.-based Encore Credit, which shuttered a center in Glenn Allen, Va.

“In the normal course of business, Bear Stearns Residential Mortgage Corporation and Encore Credit evaluate market conditions and staffing levels in an effort to identify areas where we can eliminate redundancies and improve the efficiency of our operations,” the parent company said in an e-mail statement. “In addition, the expansion of our paperless origination system enables us to more efficiently serve our customers from a central location. As a result we have made the decision to reduce our staffing levels and close two operation centers.

The layoffs were spread throughout the two subsidiaries’ facilities, with some occurring at the closed centers, Aldrich said. Bear declined to disclose the number of remaining mortgage operations centers for Encore and Scottsdale, Ariz.-based Bear Stearns Residential.

Bear mortgage servicing subsidiary EMC Mortgage Corp. announced 250 job additions planned for a Dallas-area servicing site by Sept. 2008. At the time, EMC said it has hired nearly 1,000 employees over the past seven years and employed 1,900 company wide.

The latest actions come on the heels of bankruptcy filings by two Bear hedge funds that invested heavily in subprime mortgage derivatives. Following Bear’s disclosure of the troubled hedge funds, a series of other domestic and international hedge funds have suspended investor withdrawals.

Bear Stearns news

next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts