Top 10 lenders and servicers freedom mortgage has cut staff this year with multiple layoffs and continues to “offshore” some jobs, a former employee told HousingWire.
In response to declining origination volumes, the New Jersey-based mortgage lender made at least four job cuts in March, May and August this year, multiple sources told HousingWire. Positions fired included a loan officer, closer, underwriter, client and his advocate, according to six former employees. (The former employee requested anonymity because he believes speaking publicly would jeopardize his future job prospects.)
The privately held Freedom Mortgage did not respond to a request for comment on the job cuts.
Freedom, like most top lenders and servicers, has long offshored some of its operations, hiring staff overseas to process mortgage files at a lower cost.the lender has a contract modderthe business outsourcing division of Archwell Holdings, according to sources. Founded in December 2020, Moder has a presence in India and the Philippines and plans to open an operations center in Central America this year, according to its website. Archwell president and CEO Erik Anderson did not immediately respond to a request for comment.
Job cuts at Freedom have led to loan deadlines, underwriter positions being moved to India, and U.S.-based Freedom employees reviewing jobs for international workers, according to multiple former employees. rice field.
“All the American team needs is an overview of the communication and rapid compliance that outsourced staff are doing,” said a former American employee. “You’re doing more volume because you’re not doing real work. You’re doing quick scans, fixing errors, and being a piece of communication.”
After the dismissal, an organizational restructuring took place. As part of the restructuring, some supervisors were demoted to become team leaders and closers, sources claim.
“I changed team leaders four times,” said a former junior underwriter who worked remotely. ”
Changes included client advocates (the sole point of contact between brokers and underwriters) sharing an inbox set up to deal with mortgage broker inquiries, and as business declined, individual The former employee said he was now assigned to a broker.
“They were trying to run a more streamlined process, but they said there was no more efficient quantity,” said the former employee.
Freedom led by Stan Middleman Claims on LinkedIn Have more than 10,000 employees. Housing Wire was unable to confirm whether overseas staff were included in that figure.
Freedom ranked as the sixth-largest lender in the U.S. by origination volume in the first half of 2022, but like its competitors, it has struggled with the impact of high mortgage rates. According to data from Inside Mortgage Financelenders initiated $19 billion in the first six months of the year and $8.3 billion in the second quarter of the year. 74% less.
last month, liberty sold Roundpoint Mortgage Service to the mortgage servicer Matrix Financial Services Corporation A wholly owned subsidiary of a real estate investment trust Two Harbors Investment Corporation It’s been two years since Freedom bought it.
The acquisition increased Freedom’s portfolio of mortgage servicing rights, including owned and sub-services, to $310 billion, Freedom said at the time.
Roundpoint has closed some sales operations and laid off employees due to its deal with Matrix.