Open Mortgage Does Another Round Of Lay Offs

By Musashi
August 9, 2022
2 min read

Former Employees Express Shock On Social Media As Open Mortgage Performs Another Round Of Mass Lay Offs

Open MortgageAnother round of mass layoffs has struck employees at Open Mortgage. The Austin, Texas based lender did a previous round of layoffs in June.

Open Mortgage Founder and CEO Scott Gordon confirmed that layoffs had taken place but didn’t get specific about the size of the impact.

The layoffs included people in the reverse mortgage division. However, the company only laid off junior-level employees. These employees included processors and underwriters.

CEO Scott Gordon did single out the company’s reverse mortgage channel for positive performance in 2022:

(The company) continues to be pleased with our reverse retail mortgage growth. We began the year with a goal to double the retail reverse sales force. We have already accomplished that goal and will continue to add origination staff to the reverse business.

(Management) has made the difficult decision to reduce our operations and corporate staff to align with the lower traditional purchase volume.

Former employees posted on social media that the layoffs included the underwriters and the wholesale divisions, 

Open Mortgage filed a WARN notice with the state of Texas. Employers are required to file a notice if they lay off 500 or more full-time employees. In addition, employers are required to file them if anywhere from 50 to 499 full-time employees will be affected. 

Gordon also described the company’s reverse mortgage division as one of its positive differentiating factors when describing the previous round of layoffs:

2022 isn’t a great year for any mortgage company just by the general nature of the market. However, we feel pretty excited about where things are going and how it’s progressing. I’m no less dedicated to reverse than I ever have been.

 

This article originally appeared on MFI-Miami.

Also, Check Out More Articles About The Declining Real Estate And Lending Industry On Lender Meltdown.

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