Cooper Group Inc., one of the largest mortgage servicers and originators, confirmed that revenues and revenues declined in the second quarter due to a plunge in demand for mortgages. As a result, the company has cut about 700 jobs since the beginning of the year.
Cooper, based in Koppel, fired 420 staff in the second quarter and 250 in the first quarter. Most of them were employees who worked in Origination. Dallas Morning News. Trade magazine Asset securitization report First reported Temporary dismissal in the second quarter of June. Cooper officials did not mention layoffs, except in Wednesday’s quarterly earnings announcement, which mentioned the $ 3 million severance cost.
“The mortgage industry is facing a rapidly rising interest rate and rising inflation environment, which has reduced the amount of origin throughout the industry,” the company said in an email. “It’s a shame that we had to remove the position in the second quarter as part of our efforts to control costs and ensure that the company was positioned for long-term success.”
Worker adjustment and retraining notices submitted to California indicate that 120 of those cuts were in Mr. Cooper’s office in Santa Ana, California.
Cooper had approximately 8,000 American employees as of the second quarter.
Cooper’s revenue fell 77%, down from $ 658 million in the first quarter to $ 151 million in the second quarter, the company reported Wednesday. Revenues fell 43% from $ 1.05 billion in the first quarter to $ 599 million in the second quarter.
The company raised 29,154 loans in the second quarter from 46,933 loans in the first quarter. Profit before tax from origins in the second quarter fell from $ 157 million in the first quarter to $ 63 million.
Formerly known as Nationstar Mortgage, the company sees a potential recession as an opportunity to expand. CEO Jay Bray said the company’s portfolio growth has begun to take off as it took over a large and distressed portfolio from a major bank during the last financial crisis.
“I think we’ll see a shakeout among incompetent servicers in a severe recession, which, as we saw after the last crisis, gives us new growth opportunities. I believe it will connect, “Bray said.
The company’s services business earned $ 30 million in pre-tax profit from $ 7 million in the first quarter. This is due to rising interest rates, Bray said.
Cooper provided $ 804 billion in loans as of the second quarter, up 1% from the previous quarter and 23% from the same period last year. Ultimately, he wants to offer a $ 1 trillion loan.
“This surge in service revenue is a huge benefit in this transition environment given the apparent pressure on origin,” said Bray.