Home News PIMCO-backed FGMC lays off most staffers

PIMCO-backed FGMC lays off most staffers

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Mortgage lender First Guaranty Mortgage Corporation HousingWire learned that on Friday it reduced its workforce by about 80% and stopped accepting new mortgage applications. A former employee said the lender was “essentially closed.”

According to two former FGMC employees Company On Friday, we fired about 500 employees without a severance allowance. In other words, there are only 100 staff left.

“They aren’t accepting new loan applications, which probably means they’re preparing to close everything,” a layoff-affected employee told HousingWire.

Investment management company PIMCO Purchased significant stake in mortgage lenders in 2015 And in 2018 we started layoffs and management changes. This is another tough year for the mortgage industry.

The same former employee said PIMCO was about to sign a contract to fund FGMC further, FGMC “going south” and then FGMC “hit a margin call.”

“PIMCO was trying to sell part of the FGMC, but when that failed, they sold it completely,” another source said. “Today, about 500 people were affected, including sales and operations for all three channels. In essence, the company is closed.”

“Apparently their’cash’stockpile was a lie. Let’s get started!” A former employee posted on LinkedIn.

In a written statement, a lender spokesperson said the FGMC “difficult but necessary decision to start reducing power as the mortgage market faces significant and unexpected unprecedented things. I gave it. ” Economic pressure.. ”

FGMC declined further comments and PIMCO did not immediately return a request for comment.

Approved in 49 states and the District of Columbia, FGMC offers mortgages to buy and refinance new homes.The company offers a variety of loan products, including: FHA, USDA, VA And non-QM loans.Just last week, FGMC launched a new second-drain program that allows borrowers. Tap their equity Without confusing their rate.

Mortgage lenders operate as good mortgages at retail stores that work directly with consumers. In close collaboration with third-party origination partners through correspondents and wholesale channels, the company has provided a unique non-QM product line called Maverick Solutions.

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