Mortgage Daily Logo
mortgage news from industry experts

Subprime Decline, Layoffs at WaMu

Subprime Decline, Layoffs at WaMu

120 CA layoffs

June 18, 2007

By COCO SALAZAR

photo of Coco Salazar
Tumbling subprime volume continued to take its toll on Washington Mutual Inc. employees.

On June 1, about 120 employees in Dublin, Calif., received layoff notices, according to an e-mail statement from WaMu spokesman Tim McGarry. The affected employees performed subprime loan processing duties that will be transferred to a similar center in Anaheim.

The Dublin center closure “reflects both reduced subprime volume and a continuing program of increasing efficiency by consolidating back-office support space nationally,” McGarry said in the statement.

In the first quarter, subprime volume, from Long Beach Mortgage originations and mortgages purchased from recognized subprime lenders, amounted to $3.48 billion — down from $6.07 billion in the prior quarter and from $7.09 billion in the comparable period a year earlier, the Seattle-based thrift reported.

Overall residential production fell as well during the latest period, to $37.6 billion from the fourth quarter’s level of $42.3 billion, WaMu said, citing a number of “prudent actions” to reduce its exposure to the subprime mortgage industry as the reason for the quarterly downfall. The company said its exit from the correspondent business contributed to the annual downturn.

The Dublin layoffs will be completed July 31, McGarry said.

This round of consolidation in the subprime arena follows WaMu’s mid-April completion of 250 layoffs in support staff for Long Beach loan fulfillment activity. Most recently, the Seattle based thrift cut approximately 60 mortgage records center jobs in Houston, Texas.


Washington Mutual profile
 

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...

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