Mortgage lenders confirm more sweeping job cuts

Many more mortgage professionals are unemployed after a slew of companies from a fintech startup to publicly traded industry leaders revealed layoffs. The cuts add to the lengthy list of mortgage firms shedding payroll in response to rising rates and declining affordability for prospective borrowers. New American Funding confirmed some of the industry cycle's largest layoff numbers, recently terminating 300 employees and letting go 625 workers since the beginning of the year. Mortgage fintech Ribbon terminated 136 employees at the end of July and multichannel lender Open Mortgage also confirmed it recently cut a small number of workers.?

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Nonbank mortgage jobs tank for second month

Combined estimates of mortgage banker and mortgage broker payrolls totaled 410,000 in June, a slight decline compared to 417,900 in May and 425,200 in April, according to the Bureau of Labor Statistics. However, the statistics don’t fully reflect reality, as mortgage industry data lags one month compared to the broader jobs release. The June numbers do not account for the closure of Sprout Mortgage or other recent layoffs.?

Almost half of mortgaged homes in U.S. now considered equity-rich

This is the ninth quarterly rise in home equity, helped by high house valuations and increased down payments from recent buyers. Even as the market cools, Attom expects the percentage of equity-rich properties to keep rising. Gains were particularly pronounced in the south, where many Americans moved during the pandemic.?

Finance of America plans more cuts after big losses in Q2

The company reported a loss of $168 million, compared to a loss of $64 million a quarter prior and $15 million a year ago. The mortgage division's adjusted net loss, including home improvement loans, was $21 million compared to $10 million last quarter. In response, the company has been engaging in aggressive cost-cutting measures. It has already cut its headcount and expenses by around 20%, and plans to make additional cuts to save the company $100 million in 2022.?

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Guild trims payroll as origination, servicing profits dive

Guild Holdings reported net income of $58.3 million in the second quarter, a decline from the first quarter’s $208 million. Gain on sale margins fell 363 basis points, a 9% decline from the first three months of the year. The lender laid off an unspecified number of employees in the first half, which it expects to save $40 million on an annual basis.?

Ginnie Mae tweaks some capital requirements

The revised capital requirements appear to be aimed at reducing red tape for federally insured credit unions and housing finance agencies and will bring Ginnie’s standard in line with other regulatory requirements. The move aligns with Ginnie Mae President Alanna McCargo’s previous statements regarding the importance of striking a balance between the need to manage counterparty risk and giving community lenders enough support to enable broader consumer access to credit.?

Real estate brokerage Radius moves into mortgage lending

A real-estate firm and tech startup has added a mortgage division, the latest in a list of initiatives connecting the two industries. The introduction of the mortgage business at Radius follows the company’s $14 million Series A capital raise earlier this year. In addition, radius expects to increase its efficiency in its purchase process by giving agents within its network quick access to key documents.?

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