One of the country’s largest mortgage lenders is laying off more than 500 jobs at its farmers branch, following a wave of industry layoffs after rising interest rates slashed demand for mortgages. .
Ann Arbor, Michigan-based Home Point Financial Corp., also known as Homepoint, plans to furlough 526 employees starting November 1. Labor Adjustment and Reeducation Notification Act.
Brad Pettiford, spokesman for Homepoint, said: “We are reducing our workforce to make sure Homepoint is best positioned to navigate the current high-rate, low-margin environment. We are taking the painful step of doing so.
Pettiford said the layoffs happened “organizationally.” He didn’t provide an exact number of employees nationwide affected, but said the move would save the company more than $100 million annually. detroit news reported last week Homepoint laid off 217 people at its two Ann Arbor offices in November and had about 3,000 employees in August.
“It’s hard to say goodbye to an employee whose unwavering dedication to our partners and customers contributed so much to our company’s success in the first seven years,” said Pettiford. We have taken multiple strategic actions to minimize the impact as much as possible, but continuously deteriorating market conditions necessitate this additional step.”
Pettiford said affected employees were given 60 days’ notice. It’s unclear how many employees will remain in North Texas and how that will affect local operations.
Home Point Capital Inc., the parent company of Home Point Financial, posted a loss of $44.4 million in the second quarter. Company officials said in an earnings call in August that the company was prepared to scale back to cope with lower loan demand.
Homepoint primarily originates wholesale loans that work with intermediaries to source customers. In 2018, the company announced: Expand your service business We have a new office in the Farmers Branch in Dallas/Fort Worth.
Nationwide, purchase loan applications are down about 19% year-over-year, and refinancing applications are down 79%, according to the Mortgage Bankers Association.
Other major mortgage lenders have made sweeping changes to their workforce in response. Over 400 job cuts this summerand Coppell-based Mr. Cooper Group Inc. Laid off about 700 people from the beginning of the year.