Retail lender and servicer Mr. Cooper has dropped the ax on approximately 800 staffers, roughly a week after hinting that job cuts were coming due to lower origination production.
“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.”
Mr. Cooper last week reported that its profits in the third quarter fell 58% from a year ago, to $113 million, boosted tremendously by its servicing portfolio.
On the origination side, the company’s pretax operating income reached $45 million for the quarter ended in September, an 83.3% drop year-over-year. Mr. Cooper originated $5.7 billion from July to September, down 26.1% compared to the previous quarter and 71.2% compared with the same period in 2021.
The layoff this week is at least the third major job cut of the year – the company has shed over 1,500 jobs since January, including layoff rounds in June and April. Affected positions include operations staffers as well as loan officers (called “home advisors”).
“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,” the company said in a statement Thursday. “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. ”