Delaware County real estate firm lays off 166 people as housing market slows

anytime The housing market has slowed significantlyfollowed by layoffs in the mortgage industry.

And that’s what happened Tuesday at Radian Group Inc., Wayne’s company that sells mortgage insurance and provides other services in the residential real estate industry.

Radian told state regulators it plans to lay off 66 employees at its Delaware County headquarters and an additional 100 employees at its Allegheny County office. Overall, the company employs 1,800 people at the end of 2021.

“The across-the-board slowdown in the U.S. housing market is impacting all mortgage companies and real estate companies, and Radian is no exception.” We need to reflect and be able to control our expenses and remain strong in the short and long term.”

The slowdown in real estate was evident in Radian’s third-quarter results released Wednesday. Radian said he sold $17.6 billion in new contracts in the third quarter, down from $26.6 billion in the same period in 2021, but rising interest rates have started to dampen home sales. .

Private mortgage insurance, such as the one sold by Radian, is designed to protect lenders against payment defaults when borrowers pay less than 20% down payment.

Defaults are on the rise, with the insured mortgage portfolio up 18% during the quarter compared to the same period last year, Radian reports.

Layoffs in the mortgage industry have been steady since the spring when the Federal Reserve began raising rates.

Wells Fargo starts reduce mortgage related work CNBC reported in April. Recent Zillow 300 jobs cut, according to news reports. Last month, Finance of America Holdings LLC, a Plano, Texas company, announced it was laying off 101 and closing its Conshohocken office, according to state regulatory filings.

As the economy slows, corporate layoffs are on the rise across the economy. US-based employers announced 33,843 job cuts last month. This is 13% more than September 2021 and 48% more than September 2021.

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