Newrez imposes another round of layoffs

July 09, 2024 03:52 AM AEST | By EODHD

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Newrez imposes another round of layoffs — Image source: Kalkine Media

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Mortgage layoffs. Top-five mortgage lender Newrez, owned by asset manager Rithm Capital, has imposed another round of layoffs affecting 265 employees in Colorado and Arizona, per documents sent to state authorities. That’s the third round this year, following the acquisition of Computershare Mortgage Services and its affiliate Specialized Loan Servicing (SLS ) for $720 million in October 2023, which brought some redundancies to its structures. As a result, Newrez has reduced the number of roles in certain geographies across the organization to continue its focus on core markets. In late June, the lender and servicer announced that it’s imposing a workforce reduction of 187 employees at its Greenwood Village, Colorado, facility, a former SLS location.

The company already informed affected employees that their expected separation dates will begin Aug. 26. In addition, another 78 employees were let go in a Computershare office located in Tempe, Arizona. A spokesperson for Newrez wrote to HousingWire, “We take all personnel decisions extremely seriously and are committed to supporting affected employees through this transition.” Jobs were cut across the company, including activities related to application, customer support, quality assurance, and software development, among others. Layoffs affected different positions, such as analysts, managers, and vice presidents, according to a Worker Adjustment and Retraining Notification Act (WARN) notice sent to the state authority.

Affected employees will receive a severance package, financial planning advice, mental health services, and job transition assistance. In February, Newrez restructured its distributed retail mortgage business, cutting regional and divisional managers and reducing loan officers’ compensation. In May, it announced the cut of 123 jobs in Florida and Colorado, effective July 1. In early June, another 317 employees received notification of layoff in Colorado, with their expected separation dates beginning on Aug. 2.

Newrez originated $10.8 billion in mortgages in first-quarter 2024, up 55.2% year over year, according to Inside Mortgage Finance (IMF) estimates. The company owned $537 billion in unpaid principal balance (UPB) of servicing at the end of March. Its parent company, Rithm, delivered a $261.6 million GAAP net income from January to March, compared to a $87.5 million loss in the prior quarter, per Securities and Exchange Commission (SEC) filings. Newrez’s performance was positive in the servicing and origination segments. View comments

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