Company continues to downsize its originations unit to focus on servicing
Mr. Cooper confirmed Monday that it recently let go of 800 full-time employees in its origination unit.
This is the third time the publicly traded nonbank slashed jobs this year. The move followed a round of terminations in June as Mr. Cooper continued to downsize its mortgage origination operations due to the cooling housing market.
“In the face of market volatility and economic uncertainty, Mr. Cooper Group has taken a disciplined and proactive step to scale back the originations business, including the elimination of approximately 800 positions,” the company said in a statement. “By aligning our originations operations to the smaller mortgage market, we can thoughtfully and effectively meet the needs of our current customers.”
In an 8-K filing, the Dallas-headquartered company said it expects to incur around $15 to $20 million charge to cover the costs associated with the layoffs and for “realigning capacity in its originations segment, consolidating properties, and implementing other efficiency plans.”
“Mr. Cooper operates with a balanced business model including both servicing and originations, and while we are adjusting capacity in the short term, our originations platform remains central to our long-term strategy,” Mr. Cooper said. “We have a long history of successfully navigating different cycles, and we are confident these changes will further our ability to invest and grow in the future.
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“Saying goodbye to valued team members is always a difficult decision and one that we make only after considering all of our options. Our team members play the most important role as we focus on keeping the dream of homeownership alive, and any action taken that impacts our team and culture is taken very seriously. We are committed to being transparent and respectful during this time and are offering resources to support these team members as they transition to the next phase of their careers.”
