HomeStreet has announced that it will slash approximately 127 jobs in its mortgage banking segment – about 10% of its mortgage banking workforce – and will close some of its single-family home lending centers. The company said the layoffs and closures are part of an effort to streamline mortgage operations in response to challenging market conditions.
“Purchase demand has declined as a result of an ongoing shortage of new and resale housing in our markets and demand for refinance mortgages has also declined in the face of rising interest rates,” HomeStreet said in a news release. “Profit margins have declined due to competitive pressure and a shift in loan mix as a result of higher demand for jumbo non-conforming and high-balance conforming loans due to increasing property values, and lower FHA demand due to the reduced attractiveness of FHA loan products.”
HomeStreet will close, consolidate, or reduce space in 19 single-family home lending centers, including primary and satellite offices and one regional processing center, the company said.
“The market conditions, cost structure, and product mix of these offices have changed dramatically since we entered these markets,” said Mark K. Mason, HomeStreet president, chairman and CEO. “By reducing expenses and consolidating in some markets and exiting other markets, we believe that we will be able to improve the profitability of our mortgage banking segment while also allowing us the ability to maximize our opportunities on our core markets.”
The closures and consolidations will reduce the company’s mortgage-banking headcount by about 127 full-time equivalent employees, HomeStreet said. The employees in the affected locations have been notified.
Banking giant to slash 260 mortgage jobs
HomeStreet lays off 37 in challenged mortgage banking segment