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New American Funding, no longer in growth mode, lays off 240

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california lenders new america fundraising issued pink slips to 240 employees last week, bringing the total savings to nearly 1,000 this year. The reduction in force comes after two years of rapid expansion.

“The slowdown in the mortgage market is unfortunately affecting the entire industry,” said Rick Arvielo, CEO of New American Funding. housing wire in a statement. “As stewards of this company, it is our duty to ensure that the current market is properly positioned and navigated responsibly.”

Arvielo said the company made the difficult decision to lay off “as part of an effort to align the company for continued success now and in the future.”

A total of 941 NAF employees were laid off this year “as part of an effort to right-size the company based on conditions in the mortgage industry,” the California-based lender said in a statement.

Notifications of worker adjustments and retraining were not triggered in the most recent layoffs, and the company did not comment on whether employees were offered severance packages.

Founded in 2003 by Rick Arvielo and his wife Patty Arvielo, New American Funding offers a variety of conventional, government, variable rate and non-qualified mortgages. Lenders licensed in Washington DC and 50 states 157 active branches Nationwide, according to NMLS.

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New American Funding ranks as the 31st largest lender in the nation, raising $12.3 billion through the first three quarters of 2022. This is a 46.1% decrease from last year. Inside Mortgage FinanceIn 2021, lenders generated $29.3 billion in transaction volume.

The company expanded significantly when mortgage rates were consistently low and business was booming. In 2021, he will add more than 1,300 employees, according to one company, up from about 2,800 in the previous year. push rlet go Advertised for inclusion on the Inc. 5000 list in August 2021.

Like other mortgage lenders struggling to stay profitable in a margin-compressed environment, New American Funding has laid off employees in multiple rounds. 300 positions In August. Mortgage positions such as loan originators, mortgage underwriters, processors and training professionals were most impacted.

economist Mortgage Bankers Association Total originations are down about 48% from last year, falling to $2.3 trillion in 2022, and are projected to remain at similar levels over the next two years.

If industry composition volume declines by 65% ​​from its peak in Q4 2020 to its trough in Q1 2023, MBA predicts: likely to need to reduce production employment 24-31%. As of the second quarter of 2022, MBA estimates only a 2% to 10% reduction.

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