Pennymac is closing its Franklin, Tennessee, branch and laying off staff within its consumer direct lending operations as a result of macroeconomic conditions, the lender confirmed Tuesday.
"Given the current market environment and following a careful review of our staffing needs, Pennymac has made the difficult decision to close its Franklin, Tennessee, site and reduce the associated positions within our consumer direct lending operations," a company spokesperson told National Mortgage News.
The office didn't have a support staff, but dozens of loan officers were laid off. This did not come as a complete surprise, The Mortgage Scoop reported, as Pennymac transitioned the entire office to remote work earlier this month and leads fell from about 12 a day to 4-5 in recent months.
Pennymac was one of the first major
"Affected team members are being offered severance, and we have extended opportunities to remain with the company to a number of impacted colleagues," the spokesperson said. "We are grateful for their contributions and are committed to supporting them through this transition."
Workers who remain with the company will be reporting remotely to its new hub in Carrollton, Texas, The Mortgage Scoop reported. The office opened its doors in December and will eventually create 1,800 jobs, Pennymac announced at the time.
"Our new location in Carrollton is a direct result of our commitment to our people and our belief in the future of our industry," Pennymac Chief Production Operations Officer Paul Szymanski said in a press release. "Through this investment in a best-in-class facility and access to the exceptional talent in the Dallas-Fort Worth area, we will drive growth for Pennymac."
The lender now has 10 active sales and servicing locations, half of which are located in either California or Texas.
The lender plans to improve its servicing platform and expand its artificial intelligence use, announcing a
