Wingspan Portfolio Advisors, a once-fast-growing specialty servicer that does business with the GSEs and other clients, is laying off almost 460 workers, according to a notice it filed with the Texas Workforce Commission.
However, at deadline, company CEO Steven Horne told National Mortgage News that “in excess” of half those slated for termination will find other work at the firm.
Horne said the layoff–which takes effect yearend–is tied to the company finishing a 12-month contract early. “This is good news,” he said. “It’s not that dire. We plan on redeploying a lot of these people. The net effect will be very small.”
He could not identify the client but added that other vendors “are similarly affected.”
Prior to the layoff–which broke in local news outlets in Texas on Monday–the company employed roughly 1,500.
The news comes amid reports that some large holders of both mortgages and residential servicing rights are cutting back on due diligence reviews as loan quality improves.
Horne is a former director of servicing risk strategy with Fannie Mae where he restructured the GSE’s national servicing organization and installed “redesigned servicer performance reporting and legal services management,” according to his bio.