Home Point Financial Corp. have experienced huge loss in demand for home loans due to higher interest rates. Therefore, the lending company are cutting off more than 500 jobs at its Farmer Branch Office.
$100 annual projected saving
The US markets are witnessing higher interest rate which is leading to intensified competition. Moreover, there is a pressure on the profit margins of the corporations. Therefore, the Michigan based mortgage lender posted a loss of $44 million during the second quarter. Furthermore, the company Homepoint came up with an 8-K filing in August with an aim to save $100 million annually. They filed this notice with the Texas Workforce Commission as required under the Worker Adjustment and Retraining Notification Act.
Layoffs will commence from Nov. 1
Ann Arbor, Mich.-based Home Point Financial Corp. has planned to layoff 526 employees. Moreover, the job cutting process will start from November 1st. Moreover, the layoffs include both remote and in-person employees associated with the Farmers Branch office. Previously, the company confirmed that they will slash 217 jobs at two offices in Ann Harbor, Mich. The company is employing about 500 people in Michigan. Moreover, there are more than 3,000 employees working for them nationwide.
“We are in the process of taking the painful step of reducing our workforce to ensure Homepoint is best positioned to navigate the current high-rate, low-margin environment. It is difficult to say goodbye to associates whose dedication to our partners and customers have greatly contributed to our company’s success in our first seven years of business. Over the last several months, we have executed multiple strategic actions to minimize the human impact as much as possible, but continually worsening market conditions make this additional step necessary.” Homepoint spokesman Brad Pettiford said in a statement. Furthermore, he stated that the layoffs will happen across the organization. However, he did not give an exact number of employees affected nationwide. Although he said that the number of affected employees is “in the hundreds”.
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