Home News More Than 4,000 Jobs Cut in Mortgage Lending Industry Purge

More Than 4,000 Jobs Cut in Mortgage Lending Industry Purge

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JPMorgan Chase’s Jamie Dimon and Better.com’s Vishal Gar (Getty Images, iStock, Scott Rosenthal / CC BY-SA 4.0 / Wikimedia Commons)

The Huge sucking sound The mortgage industry grew on Wednesday when Sprout mortgages told employees they were going out of business.

According to the company, the news was delivered to more than 300 staff members at a conference call on Wednesday. HousingWire.. A former employee of a Long Island-based mortgage company told the publication that Sprout had already cut its workforce several times.

The sprout closure will take place one week after the first Texas-based guaranteed mortgage. Operation with a shutter essentially According to a former employee, when most of the staff were fired. Many other companies have cut workers as demand for mortgages hit record lows.

Rising interest rates, soaring home prices, and lack of listings have leveled off some buyers and sluggish sales. This meant a decline in purchase loans, and rate hikes ended a series of refinancing. As a result, lenders no longer needed the large number of people they hired to process their applications, and often couldn’t afford it.

Other companies that have been forced to reduce their mortgage workforce include:

  • JPMorgan Chase: Two weeks ago, the country’s largest bank fired hundreds of employees from its mortgage sector.
  • Wells Fargo, the country’s largest bank mortgage company, dismissed or reassigned employees at about the same time.
  • Dallas-based lender Cooper, June 5% dismissal After reducing 250 employees earlier this year, its staff, or 450 employees. The company’s direct lending business was down 32% year-on-year.
  • Digital Mortgage Lender Tomo Has Been Dismissed 44 employees Despite raising $ 40 million in a Series A round in March, a month ago, or just under a third of staff. The company has announced funding with a valuation of $ 640 million and said it plans to double its workforce and expand into new markets by the end of the year.
  • San Francisco-based mortgage startup and proptech unicorn Home light Last month, he fired 19 percent of his staff.
  • Austin base Keller Williams After dismissing 150 recent new employees in October, he dismissed an employee from Keller Mortgage, the mortgage lending division, in May.
  • April movement mortgage Dismissed 170 Of the approximately 4,500 employees. The news came shortly after two other mortgage lenders, Interactive Mortgage and Freedom Mortgage, announced a layoff.
  • Mortgage lender Better.com Just months after the CEO was forced to apologize for dismissing 900 employees at Zoom in March, he said he would dismiss 3,000 workers in the United States and India, or 34% of the workforce. Announced.
  • Another digital lending platform, Blend Labs, was fired in April 200 employeesOr 10% of staff have saved more than $ 34 million from salaries.

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