Summit Funding Plans On Laying Off 36 Corporate Employees In Sacramento And 36 Remote Workers On November 23rd
Summit Funding plans to make a round of layoffs in late November that will affect 72 employees.
The California-based company wrote in it’s WARN filing:
“With the demand for mortgage services falling to its lowest level in 22 years, and the resulting impact of this market condition on our business, we will be laying off many employees.”
The layoffs are set for Nov. 23rd. They will affect 36 employees working in the headquarters in Sacramento. They will also affect 36 remote staff in nine states.
Summit is cutting 11 closing jobs and 10 underwriting staff. The company is also letting go nine funding employees and eight senior underwriters.
Todd Scrima, the company’s CEO, founded the mortgage lender in 1995. The company offers conventional, FHA, VA, USDA, jumbo and reverse mortgages.
Summit originated $5.2 billion in the last 12 months. The company has 268 active loan officers and 75 branches.The company has licenses in 49 states.
According to the Modex data, almost 80% of the company’s production is conforming and 55% is purchases.
The mortgage industry has been facing a wave of layoffs since late 2021. Lender production is down across the industry due to surging rates. As a result, lenders are reducing production and cutting costs. Lenders are aiming their layoffs mainly at staff hired during the 2020 and 2021 refinancing boom.
So far, in the fourth quarter of 2022, companies such as Angel Oak Home Loans have confirmed they are cutting jobs. Industry experts believe there will be no relief in the coming months.
The Federal Reserve has increased the federal funds rate by 300 basis points so far this year. The Fed wants to try to control surging inflation. Consequently, this created a “reset” of the mortgage market. Another 125 basis points in hikes are still expected to come in 2022. This would top the federal funds rate above 4%.
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