Option One to Trim 600 Jobs, Consolidate Offices

Wholesale subprime giant Option One Mortgage Corp. plans to close 12 mortgage processing offices and trim 600 workers by early September, industry sources have told MortgageWire.The company will also exit the bulk acquisition/flow correspondent market. At deadline time an Option One spokeswoman confirmed that cuts were under way, but stressed that the lender -- slated for sale to hedge fund Cerberus Capital -- will not exit any geographic areas. Of the 600 jobs that will be lost, 14% are in sales. Most of the job losses (66%) are in the production functions, the spokeswoman said. The offices slated to close include: Tempe, Ariz.; Milwaukee; Philadelphia; Foxborough, Mass.; Charlotte, N.C.; Columbus, Ohio; Ft. Lauderdale, Fla.; Bellevue, Wash.; Saratoga, Calif.; Rancho Cucamonga, Calif.; Rolling Meadows, Ill.; and Sterling, Va. The company's Lake Forest, Calif., branch will relocate to Irvine, Calif., by July 13. The Irvine-based lender is making the changes "to better align our cost structure to current revenues." (For more details, see the May 21 issue of National Mortgage News.)