Mr. Cooper Mortgage Axes 800 Employees Due To Plummeting Origination Production
Mr. Cooper Mortgage has dropped the ax on approximately 800 employees. This is roughly a week after hinting that job cuts were coming. The company had previously reported they were dealing with lower than expected origination production.
The company said in a statement:
In the face of market volatility and economic uncertainty, Mr. Cooper Group has taken a disciplined and proactive step to scale back the Originations business, including the elimination of approximately 800 positions. By aligning our originations operations to the smaller mortgage market, we can thoughtfully and effectively meet the needs of our current customers.
Mr. Cooper last week reported that its profits in the third quarter fell 58% from a year ago. This equates to about $113 million. Corporates losses would have been much worse if the company didn’t have its servicing portfolio.
The company’s pretax operating income from originations reached $45 million for the third quarter. This is an 83.3% drop year-over-year. Mr. Cooper originated $5.7 billion from July to September. Loan originations plummeted 26.1% compared to the previous quarter.
Mr. Cooper also stated originations plummeted 71.2% in the third quarter compared with the same period in 2021.
The layoff this week is at least the third major job cut of the year. The company has shed over 1,500 jobs since January. The January layoffs were followed by layoffs in June and April. Mr. Cooper laid off operations staff and loan officers.
The company also stated:
Mr. Cooper operates with a balanced business model including both Servicing and Originations, and while we are adjusting capacity in the short term, our Originations platform remains central to our long-term strategy. We have a long history of successfully navigating different cycles, and we are confident these changes will further our ability to invest and grow in the future.