Layoffs hit free mortgages

Freedom Mortgage began layoffs last Thursday and the layoffs carried over into this week, affecting nearly 1,000 employees, according to estimates from six employees. Those affected say this is the biggest cut the company has made in years.

Reductions were seen in sales, underwriting, closing, processing, IT, human resources and loss mitigation. A former employee said the reason for the downsizing was “deteriorating market conditions.” The only group to escape the purge was the company’s service department.

The estimated number of employees to be reduced ranges from 800 to 1,000 employees.

Freedom Mortgage did not respond to multiple requests for comment.

“We met with our direct executives and they talked about how unfortunate it was and how they didn’t want to share the sad news that we were no longer needed.

As of Wednesday, former Freedom employees who were laid off last Thursday were contacted by their lenders to receive two weeks of severance pay. , was reportedly asked to return the equipment.

Their health and dental benefits will expire at the end of the month and their accumulated PTO will not be paid, the affected employees say.

The manager, who was laid off on Wednesday, noted that production levels were “not quite there.”

“We typically look at 450-500 loans just for purchases. [during the pandemic] There were only 100 people today, so the letters were written on the wall. ”

Layoffs are rampant across the mortgage industry. last few weeks Because the company is reporting earnings for the third quarter. Lenders across the board are reporting losses.

The mortgage industry’s recent bloodshed has left shaken employees without a backup plan.

“All I see all over my LinkedIn is that I got fired today. I got fired today. I got fired today,” an HR source said.

“I think the mortgage industry as a whole doesn’t have the best business model as it relates to caring for people who are currently employed or who may be laid off.”

A former Freedom employee has expressed a desire to get out of the mortgage industry.

“I’m trying to get out of this industry as soon as possible,” said one manager affected by the layoff. “I don’t think the market will turn around anytime soon.”

Recent Peer Fitch Ratings review Percentage of nonbank mortgage lenders that changed their outlook on Freedom Mortgage from stable to negative.

Specifically, Fitch cited Freedom’s concern that “corporate leverage will continue to rise over the medium term.”

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