AM I NEXT? NO LOVE AT KELLER MORTGAGE

Dublin, Ohio-based Keller Mortgage, the lending arm of the nation’s largest real estate franchisor by agent count and an automated originator of mortgage loan programs, has announced that it will be addressing the over-hiring issue that saw the rapid expansion of its workforce and payroll by laying off 150 new recruits, approximately one-third of its newly hired associates. Many of whom were remote workers.

According to a company spokesperson, the hiring program “was a way to support significant anticipated business volume and cultivate talent within Keller Mortgage to create a pipeline of future experts who would be trained for more independent and specific roles in mortgage fulfillment, like processing, underwriting, and closing.”

“When we make really tough decisions that affect people, it doesn’t come without serious consideration and contemplation. This decision was difficult for everyone because it involved people — their jobs, careers, and lives. We don’t take that responsibility lightly.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT MB FINANCIAL

It is impossible to count the thousands of workers who have lost mortgage-related positions since the financial meltdown in 2008. So we are not surprised when Chicago, Illinois-based MB Financial decided to leave its mortgage origination business outside of its Chicago footprint and layoff 495 employees in Michigan. 

In the statement accompanying the company’s 1st Quarter – 2018 financial report, Mitchell Feiger, President and CEO, said ...

“Regarding mortgage, we announced earlier this month our plan to discontinue our national residential mortgage origination business. We had been pursuing a strategy of improving the profitability of our mortgage business by growing retail originations, which have typically been more profitable and consistent. However, with recent economic changes, the competitiveness of the mortgage industry, and recent low origination margins, we determined that we would be unable to successfully execute that strategy within a reasonable period of time. We plan to continue originating residential mortgage loans in the greater Chicago area through our mortgage retail offices, retain the mortgage servicing asset as well as our mortgage servicing operation in Wilmington, Ohio, and continue holding residential mortgages on our balance sheet."

It appears that the financial industry has not learned its lesson from the near collapse of the global banking system and continues to shift mortgage risks from originators to investors through the use of dangerous and dubious derivatives. Dodd-Frank, the legislation named after two of the most corrupt politicians in the financial arena, Senate Banking Chairman Christopher Dodd (D-CT) and House Financial Services Committee Chairman Barney Frank (D-MA), is a major failure with the largest financial institutions which pose a systemic risk to our economic universe growing even bigger. Even worse, the politicians are once again lowering sound underwriting requirements to generate more originations for Wall Street and to serve the underserved minority and poor borrowers who cannot afford a car, let alone a house. 

What does this portend for employees in the financial sector and the greater population? It appears that the unthinkable “black swan” event is now turning into a move-visible and more-likely “grey swan” scenario. 

Are you asking yourself, Am I Next?