As you may be aware, the reverse mortgage program has undergone a number of changes over the last year with additional changes planned in Q1, 2014. While these changes will help better position our industry for long-term growth, industry volume has decreased.
After a long and careful review of our options, we have made the very difficult decision to lower our staffing levels by about 10% effective today. This action will better position Liberty to capture new growth opportunities and deliver innovative products under a competitive cost structure.
Staffing reductions will be focused in Operations and several other support functions. This morning, we shared this difficult news with all impacted employees and will be holding a Town Hall meeting tomorrow to address any questions that you may have. Please join me in thanking these employees for their years of service and their commitment to changing seniors’ lives. We wish them the all best in their future endeavors.
In spite of these industry challenges, I want to assure you that Liberty is very optimistic about the long-term potential of our industry which is why were planning to continue to invest in our future including with the launch of proprietary products, new advertising campaigns, and better processes/systems including HELOS.
Thank you for your hard work and commitment to our company and I look forward to our Town Hall meeting tomorrow.