Overwhelming List of Recent Mortgage Mergers and Layoffs

mortgage mergers and layoffs

Author: SK

Economic depressions and foreclosures of big companies have been common for centuries. Rewinding back to the Great Depression, many banks failed at that time, but they were not due to the mortgage loans. Back in those days, mortgages were not so common. However, they were the major cause for the Global recession of 2008, where around 86000 mortgage banks failed. Even the biggest bank, Lehman Brothers, faced bankruptcy at that time, and it was the biggest bankruptcy filed. The FEDs took over and merged with some of the companies at that time to prevent their downfall. Some of them included Merrill Lynch and Fannie Mae. Since then, mortgage companies are always running the risk of mergers and layoffs. Despite the strict regulatory controls, mortgage companies can still fail. Here is a complete list of all the recent mortgage mergers and layoffs.

List of Recent Mortgage Mergers and Layoffs

  • Better.com (a digital mortgage firm) is cutting 9% of its firm employees
  • Better mortgage is taking over U.K. broker Trussle
  • Eustis Mortgage Corporation is taking over the Signature mortgage company
  • Zillow is laying off 25% of its workforce
  • Interfirst Mortgage is cutting down 77 employees’ jobs in Charlotte.
  • Athene is taking over non-QM lender Newfi
  • New Residential Investment Corp is merging with Genesis capital LLC
  • US bank is taking over MUFG Union Bank
  • Homepoint is reorganizing and may cut-off jobs
  • ResiCentral Mortgage taking over One American Mortgage
  • Pentagon FCU is planning to purchase a lending unit of TIAA Bank
  • Regions Bank to purchase EnerBank 
  • USA Mortgage Investors Corporation is filing Chapter 11 bankruptcy
  • Veritex Community Bank is merging with Thrive Mortgage LLC and taking 49% control.

Finance of America is planning to purchase wholesale lending assets of Parkside Lending LLC.

  • New York Community Bancorp, Inc. to takeover Flagstar Bancorp
  • Texas Capital Bank plans to drop off the corresponding lending unit, leading to potential layoffs.
  • Webster Financial Corp. is planning to acquire Sterling Bancorp.
  • New Residential Investment Corp. is planning to purchase Caliber Home Loans.
  • Western Alliance Bancorp is purchasing Aris Mortgage Holding Company. 
  • Calculated Risk Analytics plans to acquire Castle Mortgage and rename the company as Excelerate Capital.
  • Pacific Western Bank is purchasing Civic Financial Services, LLC.
  • First Community Mortgage (FCM) is purchasing a Mortgage Boutique (AMB)
  • PNC Bank is planning to purchase BBVA
  • Velocity Financial Inc. is laying off its workforce
  • Trustar Bank is planning to purchase Granite Mortgage.
  • Alliance Bank acquires Galton Funding.
  • MVB Mortgage and Intercoastal Mortgage Company are merging
  • CrossCountry Mortgage, LLC plans to purchase all the assets of First Choice Loan Services Inc.
  • Citadel Servicing Corp. to cut around 108 jobs in Irvine, CA
  • Impac Mortgage Holdings is planning to keep its lending activities on hold, which will lead to a temporary workforce layoff.
  • Redfin is reducing its workforce by 7%
  • Athas Capital is stopping its lending operations, leading to 172 job layoff cuts and 172 jobs in Agoura, CA.
  • Angel Oak Mortgage Solutions is reducing its workforce by 200 jobs.
  • Freedom Mortgage Corp. plans to shut down its San Dimas call center, leading to 171 jobs.
  • Mr. Cooper to cease Beaverton, leading to loss of 301 jobs
  • FirstBank is planning to purchase Franklin Synergy Bank.
  • Capital City Bank Group Inc. is planning to take a 51% ownership stake in BrandMortgage
  • FDIC is shutting down Resolute Bank
  • Commerce Bancshares, Inc. plans to purchase Assumption Mortgage Corp. and rename it Assumption Mortgage, LLC.
  • Ditech sells its reverse mortgage business segment to Mortgage Assets Management, LLC.
  • New Residential is also buying the forward mortgage servicing segment of Ditech Holding.
  • William Lyon Homes purchased South Pacific Financial Corporation and renamed it as ClosingMark Homes Loans, Inc.
  • Stearns Holdings LLC (parent of Stearns Lending) files for bankruptcy
  • Pretium is planning to purchase Deephaven Mortgage LLC.
  • Bank 34 ceases its mortgage lending operations and will sell its nine production offices.
  • Movement Mortgage purchases the retail division of Platinum Mortgage Inc.
  • First Choice Loan Services is stopping its operation and is up for sale. 
  • Sierra Pacific Mortgage Company, Inc is purchasing Moore Lending Group.
  • WMC Mortgage files Chapter 11 bankruptcy and will probably cease its operation.
  • Colony Bank is planning to purchase PFB Mortgage.
  • Ditech is closing its St. Paul office, leading to the layoff of 210 employees.
  • Bank of California ceases its wholesale and correspondent lending operations.
  • Ocwen closes multiple facilities, leading to the loss of 2000+ jobs.
  • TIAA Bank is ceasing its retail branch mortgage lending operations and will sell some branches to the U.S. bank, which will lead to potential job losses.
  • Village Mortgage Company is ceasing its wholesale lending operations.
  • U.S. Bank is planning to cut around 40 mortgage jobs in Brookfield.
  • Provident Bank Mortgage to cease operations, leading to 133 layoffs in CA
  • Title365 will cut around 70 jobs in Palm Bay, FL.
  • MR Cooper will reduce operations, leading to the loss of 109 jobs in Santa Ana.
  • Wells Fargo will cut around 900 jobs, and 400 will be from Des Moines.
  • Finance of America ceases operations in its Roseville office, leading to 33 job losses.
  • Mr. Cooper is planning to purchase Pacific Union Financial LLC.
  • First American Title Insurance will cut around 116 jobs in Santa Ana, CA.
  • New Fed Mortgage Corp. will take over Commonwealth Mortgage LLC.
  • Middletown Valley Bank will take over Millennium Financial Group (MLend)
  • Gateway Mortgage group will cease operations in eight retail mortgage branches in California, leading to 25 job losses.
  • Bridgeview Bank Mortgage is planning to cut 97 jobs.
  • Franklin First Financial ceases its operation. 
  • United Bank is planning to restructure, which will cut jobs of mortgage loan officers. 
  • Firstar Bank is planning to purchase assets of Leader Mortgage.

Conclusion

The list above is massive, and it may also not be an exhaustive list of most mortgage mergers and layoffs. Due to the risks associated with mortgage banking, many banks are ceasing operations of their different divisions. 

After the financial crisis, there has been complete regulation over the mortgages disclosures and risk assessments. Therefore, they are not as volatile as they were before. If you’re looking to purchase a home or want to refinance it, a rate checker can help you connect with prospective lenders.