Over Hundred Mortgage Job Cuts at HomeStreet

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After eliminating dozens of mortgage jobs in response to diminishing loan originations, HomeStreet Inc. is again cutting its home-lending staff  — this time by more than a hundred. Several branches are also being closed.

In its first-quarter earnings report, the Seattle-based financial institution disclosed company-wide layoffs of 86 full-time employees — including 37 in mortgage banking.

The bank said it made the move as a result of slowing originations; in addition to declining refinance transactions, its purchase-money business is suffering from a lack of inventory in its hometown of Seattle.

First-quarter production was $1.452 billion, sinking from $1.887 billion the prior quarter and $1.621 billion a year prior.

On Wednesday, HomeStreet announced that it “is taking steps to streamline operations in its mortgage banking segment after experiencing several quarters of single-family mortgage market challenges that have reduced loan origination volume and profit margins.”

HomeStreet said it is reducing its mortgage-banking headcount by 127 full-time equivalent employees. This represents 10 percent of total mortgage staffing as of March 31, which was previously reported at 1,307.

In addition, 19 single-family home-lending centers are being closed, consolidated or reduced. The centers include multiple primary and satellite offices as well as one regional processing center.

“The market conditions, cost structure and product mix of these offices have changed dramatically since we entered these markets,” HomeStreet Chairman, President, and Chief Executive Officer Mark K. Mason said in the statement. “By reducing expenses and consolidating offices in some markets and exiting other markets, we believe that we will be able to improve the profitability of our mortgage banking segment while also allowing us the ability to maximize our opportunities in our core markets.”

Mortgage Expert

Mortgage Daily Staff



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