IBM to slash more than 300 mortgage-servicing jobs

by Ryan Smith15 Jan 2019

More than 300 IBM mortgage employees will lose their jobs by March, the company has announced.

According to a notice that IBM filed last week with the North Carolina Department of Commerce, 310 employees of Seterus, Inc., the company’s mortgage servicing subsidiary, will be handed their walking papers starting March 11. The company’s Durham, N.C., office will be closing permanently, according to a report by local news affiliate CBS 17.

The layoff announcement came just days after IBM agreed to sell Seterus to Mr. Cooper Group.

“IB< acquired the Seterus mortgage servicing business in the wake of the 2008 financial crisis to help a client manage a broad mortgage portfolio, including high risk loans,” IBM said in a statement on the sale. “IB< was successful in the mortgage servicing work, and the portfolio is now much more stable. The time is now right to divest this mortgage business to a mortgage servicing specialist, whose domain-specific expertise and scale can further advance this business.”

The layoffs will begin no earlier than March 11, CBS 17 reported.