AM I NEXT? NO LOVE AT BLEND LABS (01/11/23)

Stephen Levine May 10, 2022

JANUARY 11, 2023 — 20% OF THE WORKFORCE TO BE LAID OFF TO ACCELERATE THE PATH TO PROFITABILITY

Along with a management shake-up, Blend embarks on layoffs impacting approximately 340 employees.

According to a company statement, “Today, we’re announcing a comprehensive set of initiatives that affirms and accelerates our previously communicated path to profitability, including enabling Blend to realize enhanced gross margins from our Blend Platform offerings, including mortgage banking, beginning as soon as the second half of 2023.

“A key step in that effort is the significant reduction in our overall expenses. This move requires the very difficult but necessary decision to say goodbye to many talented people as we align the organization for market realities and prepare for future growth.”

MAY 10, 2022 — Original post…

San Francisco, California-based Blend Labs, a technology firm specializing in the development of cloud-based software platforms for the financial services industry, has announced a ten-percent reduction in force to realign staff and market conditions.

The layoff will impact approximately 200 positions across the company and is expected to be completed by the second quarter of 2022. The decision was driven by market conditions, including rising interest rates and lower mortgage origination and re-finance volumes.

Nima Ghamsari, founder and chief executive officer of Blend, noted, "Some of our operational businesses, such as our title insurance agency in particular, are seeing the negative impact of higher rates and reduced refinance activity. As a result, we made the difficult decision to lay off about 10% of our employees. Making these decisions is never easy, but we are committed to making our employees’ transition as smooth as possible.

Most of the decisions we made were a function of changes in refinance volumes. With lower volumes, we need fewer people to execute and support those businesses. However, we are committed to continuing to serve you in the way you have come to expect from Blend. In fact, we believe that our renewed focus on the technology that makes Blend special will make us an even more valued partner to you.”

According to a statement filed with the Securities and Exchange Commission, the company is "committed to a workforce reduction plan (the “Plan”) as part of its broader efforts to improve cost efficiency and better align its operating structure with its business activities. The focus of the Plan is on streamlining the Company’s title operations as well as its general and administrative functions. The Plan includes the elimination of approximately 200 positions across the Company or approximately 10% of the Company’s current workforce."

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?

AM I NEXT? NO LOVE AT ROCKET MORTGAGE (01/24/23)

Stephen Levine May 5, 2022

JANUARY 24, 2023 — ANOTHER 50 EMPLOYEES GONE

In the second round of layoffs, the company laid off 50 employees.

A company spokesperson commented, “As is common practice in all companies, Rocket regularly looks at the priorities of the business and what roles are needed to achieve those goals. The eliminated positions represent less than one-quarter of one percent of the roles in the company. Emerson added.

MAY 5, 2022 — Original post…

Detroit, Michigan-based Rocket Mortgage, the largest retail residential mortgage lender in the United States mortgage loan provider, has announced a major reduction in force in response to rising interest rates and shrinking origination and refinancing loan volumes.

To prevent major disruptions with preemptive layoffs, the company is offering voluntary buyouts to approximately 2,080 employees, eight-percent of its 26,000 employees, within its Rocket Mortgage’s operations team and groups within Amrock, its affiliated title company.

It is unknown Rocket if the company would proceed with involuntary layoffs should the buyout program fail to achieve its financial goals.

According to the chief administrative officer at Rocket Central, Mike Malloy, “One of our responsibilities as a company is to provide our team members a fulfilling career, and we have been able to do that for tens of thousands in the last 36 years.

Over that time, we have been through several market cycles — similar to those the industry is experiencing today. As a result of today’s market, some team members have told us they are considering a move to another position or a completely different industry. At the same time, our career growth options in certain areas of Rocket Mortgage and Amrock are limited right now, while the housing market normalizes after two years of unprecedented volume.”

AM I NEXT? NO LOVE AT FLAGSTAR (10/19/24)

Stephen Levine May 2, 2022

MARCH 3, 2025 — TRANSFER FAILED, 400+ EMPLOYEES TO BE LAID OFF

Flagstar Bank is laying off another 400+ employees because plans to transfer them to the buyer as part of the sale of its mortgage servicing business and third-party origination platform to Mr. Cooper have been canceled.

A spokesperson for Mr. Cooper noted, “At this time, we have successfully boarded the bulk of the servicing portfolio, and through this integration,we have determined that we will not bring on as many team members from Flagstar as anticipated. We are committed to being transparent and respectful during this time and are working in partnership with Flagstar to ensure team members are supported as they transition to the next phase of their careers.”

OCTOBER 19, 2024 — 1,900 EMPLOYEES TARGETED

Hicksville, New York-based New York Community Bancorp, the bank holding company for Flagstar Bank, has announced that it is executing a cost containment initiative that will result in an 8% reduction in its workforce. The reduction will impact approximately 700 jobs.

NYCB plans to adopt the Flagstar name on October 25, 2024, and expects that the sale of its residential mortgage servicing unit will impact an additional 1,200 employees when the transaction is completed.

CEO Joseph Otting noted, “We want to express our appreciation for our employees' contributions. Their hard work and dedication have been greatly appreciated, and we approached this decision with empathy and compassion for everyone affected.
"As part of our commitment to a profitable future, we launched a transformation strategy earlier this year to drive change throughout the organization. This includes strengthening our management and Board, redefining our operational plan for improved efficiency, and enhancing our credit oversight and risk framework.
"While these strategic actions involve difficult decisions, including impacts on jobs, we believe they are essential for strengthening our financial foundation and building a more agile, competitive company. This will enable us to focus on strategic investments in other areas and better serve our clients and shareholders, ensuring long-term sustainability and profitability.
"We have made significant progress this year and will continue to pursue opportunities to optimize our operations and enhance efficiency, paving the way for a more resilient and successful future."

JANUARY 29, 2023 — RETAIL MORTAGE DIVISION CLOSURE

Flagstar Bank has closed its retail mortgage operation and laid off hundreds of staffers, including senior management, without warning.

MAY 2, 2022 — Original post…

Troy, Michigan-based Flagstar Bank, a subsidiary of Flagstar Bancorp and a national residential mortgage originator and operator of a full-service Midwest community bank, has announced that it will be following other domestic mortgage firms and reducing its headcount.

The reduction in force has impacted 420 employees involved with mortgage lending.

According to Lee Smith, Executive Vice President and President of Mortgage at Flagstar Bank, "Mortgage originators today are facing unprecedented increases in interest rates and a significantly smaller mortgage market than what we experienced in 2020 and 2021. To ensure we’re positioned to continue to successfully navigate the market, between layoffs and natural attrition, Flagstar has reduced its mortgage staff by 420, including 358 direct layoffs and 62 unfilled positions, or 20% since year-end 2021.”