Homepoint Has Finally Admitted That It Shed Over 3,000 Employees.
Homepoint has finally admitted that it has shrunk its workforce. The company says it’s workforce of 4,000 workers in summer of 2021 down to 1,000.
The wholesale lender laid off 913 employees according to WARN notices filed in Arizona, Florida, Michigan and Texas.
Homepoint has also sold off large chunks of the business over the past year. This includes servicing rights to ServiceMac. It also delegated correspondent to Planet Home Lending. This accounts for several thousand workers transitioning to new firms.
The company’s headcount is down about 40% from pre-pandemic levels of about 1,500. Homepoint officials said this is down 75% from summer of 2021. At the time, the Ann Arbor, Michigan-headquartered lender had about 4,000 workers overall.
The company said the separations will begin on November 1st. Homepoint has eliminated post-closing auditors and underwriters. They also cut loan coordinators and document review specialists.
The workforce reduction is forecast to save more than $100 million annually for the lender. Homepoint’s parent company Home Point Capital reported losses of more than $44 million in the second quarter of 2022.
The company is facing shrinking loan origination numbers caused by high mortgage rates. In addition, Homepoint has also been hit hard by a price war with United Wholesale Mortgage.
UWM has been cutting prices between 50 to 100 basis points across all loans since the end of June, Home Point Capital CEO Willie Newman acknowledged that UWM’s actions have added to the challenges of a down origination cycle and the company’s recent earnings call.
Home Point Financial ranked 15th on Inside Mortgage Finance’s list of top purchase mortgage lenders. The lender originated $12.2 billion in volume as of June 2022, down 18.5% year-to-date.