I work in processing, and a number of my top HMC’s I have worked with in the Midwest region have been ‘displaced’ today. Lots of Minnesota and Nebraska loan officers were notified via a conference call this morning that they will be sent packing. And these were some of the top loan officers, who have brought in a TON of business over the years. But since they didn’t hit their numbers last year ( who did?), they were let go.
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Mortgage is the canary in the coal mine. They have been laying off for the past year. Many other large companies are now following suit. You are seeing the beginnings of 2008 again. But, don’t despair. Next, comes early defaults (with everyone losing their job, no one can afford to pay their mortgage). The banks and mortgage companies will then rehire capable individuals to handle the new load of modifications and early default/foreclosures they are presented with. Then, of course, entire repurchase claims departments will be staffed as the secondary market investors will want the bank to repurchase these defaulted loans and they will need skilled and knowledgeable underwriters to handle these issues. Etc, etc, etc.
Finally, so sorry for those affected by layoff. Please have a plan as to what to do even if it means going back to school former-education.
How do we survive 30 year being top lender even surviving 2008 and now they want to reduce exposure in the business area that generate income (servicing) during down turns. Completely cutting off correspondent when there was a project to expand it into December. Makes no sense
WF was not a huge mortgage lender before 2008. WB purchase brought a huge number of mortgages and the processing capability to do even more. WB went under due to that mortgage portfolio and their CDO creation of that portfolio. Got to wonder about our leadership expanding a failed business model.
It has begun. *starts planning a vacation
Cost Per Loan = why.
It looks like several entire teams including management and HMCs/PMBs in non metro area MN, SD and ND were let go.
Looks like we have 25ish in Charlotte, and 15ish each in Tempe and Des Moines. For those not familiar, how many HMCs did we used to have?
Does anyone know the total number of people laid off in Home Lending yesterday (Correspondent and HMCs)?
In 2008, we fared far better than our competitors due to our conservative lending practices. People need solid credit and low debt-to-income ratios in order to get a mortgage. Our Correspondent business has also been a solid business. It makes me wonder where this company will be in 10 years.
How do we survive 30 year being top lender even surviving 2008 and now they want to reduce exposure in the business area that generate income (servicing) during down turns. Completely cutting off correspondent when there was a project to expand it into December. Makes no sense
Unfortunately, this is a result of not just the current mortgage market but also Charlie’s plan to pull back on home mortgage. He fails to realize that HM has been a money maker for WF and WF has had the greater share of the mortgage market. He is pulling back because of his ego as a result of the Bloomberg article almost 2yrs that accused WF of denying loans to minorities. Instead of fixing the real issue, he is finding the easy way out - limit drastically WF’s mortgage operations and by extension letting hard working team members be laid off. It is a shame.
Its nationwide- Utah shut down- arizona, oregon Alaska and Cali. 1000s are gone. If you are not in a bank branch and not in populated city you were axed. People that made sakes conference are all gone.
Mortgage is cyclical. This is why I never work in mortgage. Many had some great years, but now we are entering a period of some tough times. These layoffs will happen. If you enjoy the good times, the pendulum will eventually swing the other way. It’s swinging.
any in Fort Mill office?
I am a closer who worked closely with some Nebraska HMCs and I am not happy. This is very frustrating as half of my pipeline was one HMC and a few of my other loans were another specific HMC. It's a mess around here. It seems like it was all Nebraska, some Illinois, some Wisconsin. I haven't found a Minnesota one let go yet though.
Rates are going way up. Worse than job loss is everyone seeing their home values cut in half, 0% rates this last decade and the bill has come due.
Pretty much all HMCs/PMBs in non-banking states were laid off. It might even be beyond that, as I heard Florida was affected. Even large producers; I know personally of a couple $100M a year producers that were part of it.
I hope the folks let go move on to bigger and better. Mortgage always bounces back high and when it does - it always does - I hope these folks remember how they were treated here and take their talents elsewhere.
Good luck to all!
Very true, mortgage consultants nationwide are being laid off regardless if they hit their numbers or not.
Not totally correct. The people impacted hit their numbers last year. Some had their best year. This year is a different story for sure. It was over 200 in our region.
Can’t help but be a little (a lot) envious. Look at it as an opportunity forward and don’t dwell on the past. Leave WF in the rear view and don’t look back.
Springfield IL has some notices given today. No number given or confirmed