Freedom Mortgage Has Conducted Their Fifth Round Of Mass Layoffs This Year And Are Outsourcing Underwriting Jobs To India
Freedom Mortgage has trimmed its workforce with fourth round of layoffs this year. The company is also continuing to outsource underwriting and loan closing jobs to India.
Freedom Mortgage has been a victim of falling origination volume. As a result, the company has conducted at least four rounds of layoffs this year.
The company has eliminated loan officers and closers. In addition, they have also laid off underwriters and client advocates.
Freedom has long offshored a portion of its operations and hiring staff overseas. The lender has a contract with Moder. Moder is the business outsourcing arm of Archwell Holdings.
Multiple former employees said the cuts at Freedom led to loan closer and underwriter positions being transferred to India.
Organizational restructurings occurred after the layoffs began. Some supervisors were demoted to become team leads and closers as part of the restructuring.
Freedom, led by Stan Middleman, claims on LinkedIn to have more than 10,000 employees. However, HousingWire and other trade media outlets are unable to confirm his numbers.
Freedom ranked as the nation’s sixth largest lender by origination volume during the first half of 2022. However, like its competitors, the company is suffering from the impact of high mortgage rates.
Data from Inside Mortgage Finance claims the lender originated $19 billion of loans in the first six months of this year. However, the company only originated $8.3 billion in the second quarter of this year. Loan origination volume also dropped 74% in the second quarter compared to the same period last year.
The acquisition increased Freedom’s combined owned and subserviced mortgage servicing rights portfolio to $310 billion, Freedom announced at the time.