Home News Home Point Capital lays off hundreds amid shrinking mortgage market

Home Point Capital lays off hundreds amid shrinking mortgage market

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Ann Arbor-based mortgage lender Home Point Capital is laying off hundreds of people as lenders face increased competition in a shrinking mortgage market.

The company operating as Homepoint laid off 217 people at its two Ann Arbor offices in November, according to a worker adjustment and retraining notice filed in Michigan on Wednesday. Man’s Brad Pettiford said the layoffs are being made across the organization beyond Michigan, but did not provide a specific total number of people affected.

Rising interest rates have dried up refinancing opportunities and increased competition for buying homes in a low-inventory environment. National and local lenders are taking steps to cut their workforces, which have increased due to a spike in origination numbers just a few months ago.

Home Point faces coordination challenges. The company $44.4 million loss in the second quarter. Shares rose Friday on news that the layoffs would save $100 million a year, but the company’s closing price of $2.30 was down 43% from a year earlier, said spokesman Brad Pettiford.

“HomePoint is taking the painful steps of layoffs to help it navigate this high-interest, low-margin environment,” Pettiford said in a statement. “It is difficult to say goodbye to an employee whose unwavering dedication to our partners and customers has greatly contributed to our company’s success during his first seven years.”

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Pettiford added that the company has taken multiple steps over the past few months to mitigate the impact on jobs.

“However, the continuously deteriorating market conditions make this additional step necessary,” he said. While these decisions are difficult, we remain committed to building a sustainable company that provides best-in-class experiences for the partners and customers we serve. ”

Employees are given 60 days’ notice. The company hired about 3,000 people last month, and previously in Michigan he employed 500. He laid off 10% of his workforce last year.

The job cuts follow Detroit-based Rocket Mortgage. Rocket Mortgage, part of Rocket Companies Inc., is the nation’s largest mortgage lender. Proposing a second buyout to a handful of employees.

Rival United Wholesale Mortgage Holdings (Pontiac) has vowed not to lay off workers, but the company’s workforce has fallen from over 8,000 to over 7,000 in recent months, making it a “natural move.” decrease.

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