home point It laid off more than 100 employees this week as it feels the effects of the price war in the wholesale lending space.
A spokeswoman said Thursday that the company’s job cuts on Wednesday and Thursday were in line with the company’s “organizational openness to downsizing to effectively counter tough market pressures.” confirmed.
Jobs that were discontinued this week were primarily administrative positions such as customer support, underwriters and loan coordinators, according to former employees.
A spokesperson said, “We are taking the painful steps of reducing our workforce to ensure Homepoint is best positioned to navigate the current high-rate, low-margin environment. It is.”
“Over the past few months, we have taken multiple strategic actions to minimize human impact as much as possible, but continuously deteriorating market conditions have made this additional step necessary. increase.”
Affected employees were given 60 days notice to be terminated in November, the company said. Headcount reductions are expected to save the parent company’s lenders more than $100 million annually. home point capital reported losses over $44 million Second quarter of 2022. This number is down from a profit of about $12 million from the previous quarter.
Willie Neumann, CEO of Home Point Capital, said on the company’s second quarter earnings call. “We are not afraid to become smaller.”
UWM lowered the price of all loans from 50 basis points to 100 basis points in late June in an effort to increase market share. Aggressive pricing is wreaking havoc on other lenders such as: Mountain West Financial When loan depotwill be forced to exit the wholesale channel.
Homepoint said it would not engage in price wars, 75 bps price bonus To match traditional loans at no additional cost to borrowers for a specified number of zip codes in 20 states.
Phil Shoemaker, Homepoint’s president of origination, said the August launch is aimed at giving consumers greater access to affordable home ownership when partnering with mortgage brokers. rice field.
Homepoint’s total funding fell to $9.3 billion in the second quarter from $12.5 billion in the previous quarter and $25.5 billion in the same period in 2021.
Second quarter revenues were $70 million, down from $158 million in the prior quarter. Expenses fell slightly to $119 million from his $137 million during the same period.
Home Point is pessimistic about the outlook for the second half of the year. Lender executives anticipate further margin pressure and plan to cut costs, improve liquidity and sell mortgage servicing rights.