Struggling Ann Arbor-based mortgage lender Home Point Capital plans to lay off more than 200 employees later this year, according to state filings.
In a WARN notice, the company notified the state’s Department of Labor, Economy and Opportunity on Wednesday that it will permanently lay off approximately 217 employees from its two Ann Arbor offices.
The layoffs come at a time when the mortgage market is in decline, and several other companies (including local ones) are also looking to cut jobs.
However, the home point is especially rough. On Friday morning, the company’s shares traded at an all-time low of $2.27, down 80% since the company went public in early 2021 (NASDAQ:HMPT).
Affected employees have been given a 60-day notice period and the layoffs are expected to take place in early November, Home Point spokesman Brad Pettiford wrote to Crain’s in an email Friday morning. As of last month, the company had about 3,000 employees.
“Homepoint is taking the painful step of reducing its workforce to ensure it is best positioned to navigate through the current high-interest, low-margin environment,” Pettiford said in an email. It’s the place,’ he said.
“…over the past few months, we have taken multiple strategic actions to minimize human impact as much as possible, but continuously deteriorating market conditions necessitate this additional step. These decisions are difficult, but we remain committed to building a sustainable one, a company that provides best-in-class experiences for the partners and customers we serve.”
Pettiford added that the layoffs are expected to result in $100 million in annual cost savings for the company. It’s unclear which specific areas of the company will be affected by the layoffs.
In last month’s second-quarter earnings report, Home Point report Quarterly losses exceed $44 million.
Home Point CEO Willie Newman told analysts at the time that the company was “not afraid to go small.”
Detroit-based Rocket Mortgage announced last Friday that Second round of takeover offer to a “small fraction” of that workforce.
Rival lender Pontiac’s United Wholesale Mortgage said it weathered the shrinking mortgage market without resorting to layoffs so far. However, it had about 7,000 employees last month, down from a peak of about 8,000 last year. A company spokesperson said the decline was due to “natural attrition.”