Mortgage Daily Logo
mortgage news from industry experts

Correspondent Layoffs

Correspondent Layoffs

250 SC jobs cut

May 4, 2006

By COCO SALAZAR

photo of Coco Salazar
Washington Mutual Inc.’s realignment of correspondent lending operations will result in hundreds of South Carolina layoffs.

Approximately 250 home loan employees in Florence, S.C., received notice Tuesday that their positions would be eliminated, WaMu spokeswoman Sara Gaugl told MortgageDaily.com in an e-mailed statement.

“We believe yesterday’s actions will better align our resources with our business initiatives and position us well for future growth,” Gaugl said in the statement.

The Seattle-based thrift told employees it had made adjustments to its correspondent lending activities to diversify the product set into higher-margin products, leverage the distribution network and reduce costs.

Currently, there are about 1,000 employees in Florence, but the city “will remain an important hub for the company and additional growth there is likely over time,” Gaugl said. “Positions related to secondary mortgage market operations will relocate to Florence.”

In addition to redirecting correspondent channel activities to the conduit business managed by the home loans capital markets division, WaMu will shift focus from buying low-margin products on a loan-by-loan basis to acquiring bulk and mini-bulk purchases of higher-margin lending products, such as option and hybrid adjustable-rate mortgages, and alternative A and B, and subprime loans, according to the statement.

In January, WaMu let 64 post-funding, Florence employees know their jobs would be cut by or before midyear and would be performed in India. The company expects to grow the number of offshore full-time employees from 1,600 to 6,000 over the next two years.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com

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...

Newsletter

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

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION