NewRez, a division of Citizen Bank, huts its employees

NewRez, Rithm Capital’s mortgage origination and servicing business, and Franklin American Mortgage, a division of Citizens Bank, announced layoffs last week, multiple sources told National Mortgage News.

The total number of affected employees of both companies remains unknown. His WARN notice in Maryland filed by NewRez on Nov. 2 shows that 24 employees have been laid off. However, that number is very likely to be significantly larger across the enterprise.

NewRez did not respond to multiple requests for comment.

A spokesperson for Citizens Bank confirmed that the layoffs did indeed occur, saying that the “reduced mortgage volume” has prompted lenders to make “difficult but necessary decisions related to the organizational structure of our mortgage business.” However, the spokesperson declined to provide information on the number of employees laid off.

A Citizens spokesperson said in a statement, “We are working with affected colleagues to provide support, including re-employment and job search assistance.” , and have the option to seek other open positions at Citizen.We will continue to operate our lending operations from both our Franklin, Tennessee and Irving, Texas offices.”

Underwriters, loan officers, techs and even NewRez’s graphic designers have been affected nationwide, according to a LinkedIn post. Their positions will end on December 31, 2022.

NewRez parent company Rithm Capital reports third quarter results clearly Its new mortgage production declined 28% to $13.8 billion in the third quarter from $19.1 billion in the second quarter. Soaring mortgage interest rates kept borrowers away. The third-quarter figure was 60% below his $34.5 billion generated in the same three-month period last year.

Layoffs have swept the industry in recent weeks as lenders announced third-quarter earnings.

Last week, Mr. Cooper also announced It will cut about 800 jobs, calling it a “disciplined” and “aggressive move to scale back the origination business.” Meanwhile, cross-country mortgages have cut 100 positions, according to the state of Colorado. warning notice.

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