Movement Mortgage cuts 180 workers, citing the slow housing market
Movement Mortgage, citing the continuing deterioration of the housing market, is eliminating approximately 180 back office positions on Oct. 5.
This is the company's third round of cutbacks this year. In February it let go of 75 operations people but those job eliminations were related to process changes.
However, May's cut of 100 back office positions was because of the lower-than-expected mortgage origination volume.
Prior to this round of cutbacks, Movement had 4,000 employees. Its 2017 volume was approximately $13 billion. The company is not releasing year-to-date originations, but total production is expected to be flat compared to last year.
All of the positions being eliminated were in support or administrative functions. No executive or sales positions are being eliminated.
The positions affected are in Fort Mill, S.C., Norfolk, Va., Tempe, Ariz., and Richmond, Va.
Industry-wide loan volume was lower than expected so far this year, and given higher interest rates, the continued lack of homes for sale, rising prices and softening demand, next year looks to be worse than originally projected, Movement said. Fannie Mae Chief Economist Doug Duncan recently cut his mortgage origination forecast for 2019.
"This was a very difficult decision because it affected teammates we love," Movement Mortgage CEO Casey Crawford said in a press release. "We are incredibly grateful for their contributions."
"We believe we're taking the necessary steps to continue to provide outstanding service for our customers, loan officers and communities long-term by adjusting to the reality of the mortgage business today. We're prepared for the future and expect to continue making a positive impact in our industry, corporate culture and communities in the years ahead," he continued.