AM I NEXT? NO LOVE AT CIVIC FINANCIAL SERVICES

Redondo Beach, California-based Civic Financial Services, a subsidiary of Beverly Hills, California-based PacWest Bancorp and an institutional private money lender specializing in the financing of non-owner occupied investment properties, has announced a restructuring and cost-cutting initiative.

According to an SEC filing, the restructuring will impact 200 employees.

According to the filing, "Last month, the Company announced it recorded a goodwill impairment of $29 million as part of a strategy to restructure Civic to improve its profitability and risk profile. This restructuring involves reducing the number of loan products offered, reducing loan growth compared to 2022 levels, and transferring the management of most Civic functions to Company executives. In addition, the Company anticipates that approximately 200 Civic positions will be eliminated, effective in the second quarter of 2023. This restructuring aligns with the Company's strategy to focus on relationship-based community banking and to improve capital, liquidity, and operational efficiency"

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. We see good people being laid off through no fault of their own. 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 REVERSE MORTGAGE FUNDING (01/11/23)

JANUARY 11, 2023 — NEW YORK AND NEW JERSEY LAYOFFS ANNOUNCED

The company is acceleratings its East Coast layoffs with 65 Bloomfield, New Jersey employees to be laid off on February 2023, and 254 employees will be laid off in Newburgh, New York, by the end of March 2023.

This follows the 119 employees laid off in the Melville, New York office in December 2022.

DECEMBER 15, 2022 — Original post…

Bloomfield, New Jersey-based Reverse Mortgage Funding, a correspondent lender serving the reverse mortgage market, has filed for bankruptcy following its announced "pause" in mortgage originations which lead to a major company-wide reduction in force. RMF originates, acquires, invests, and services reverse mortgage loans and securities backed by reverse mortgage loans.

The reduction in force will impact more than 500 employees or approximately 80% of its workforce.

A company spokesperson noted, “like many of its peers, RMF has been challenged by unprecedented interest rate hikes and overall macroeconomic volatility. As a result, the cost of financing and securitizing reverse mortgages has made it impossible for RMF to continue originations for seniors looking to unlock value in their homes at this time. RMF has been working diligently with its constituents to support its business and is doing everything possible to weather these challenging market conditions.”

No mention was made of industry rumors that the company had difficulty funding operations with its warehouse lines of credit.

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. We see good people being laid off through no fault of their own. 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 ORCHARD

New York, New York-based Orchard, a real estate platform and funding company, has announced that the company will shrink its workforce by 25% in the second round of layoffs in six months.

The reduction in force will impact 180 employees following the 100 employees in the previous June 2022, round of layoffs.

According to Orchard founder and CEO Court Cunningham...

Hi team,

As I shared in Town Hall this morning, today is a sad day at Orchard, as we say goodbye to around 180 hard-working, talented team members.

These changes are in no way a reflection of the wonderful work and progress achieved by these team members, and it is with great sadness that we say goodbye to them. If your job has been impacted, you will receive a meeting invite from HR by 10:30 AM ET to talk through your departure. These meetings will be complete by 4:00 PM ET today."

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. We see good people being laid off through no fault of their own. 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?