Santander to cut 80 U.S. mortgage jobs as it exits TPO loan channel
Santander Bank's U.S. unit will be eliminating 80 mortgage-related positions as it withdraws from the third-party origination sales channel and refocuses on producing home loans through its branch network.
The majority of the positions that the Spanish bank plans to cut are in offices in Villanova, Pa., according to a Worker Adjustment and Retraining Notification Act filing. The filing shows 66 positions will be discontinued at those locations.
"Santander Bank made the decision to exit the third-party originator sales channel within our home loans business," Laurie Kight, senior director and senior vice president of communications at Santander Bank, said in an email. "This change will allow Santander to focus exclusively on providing home loan solutions to customers through our mortgage development officer sales force throughout our 600-plus branch network. This change in our business model will lead to approximately 80 job eliminations for colleagues who support the third-party sales channel."
"Any business decision that necessitates a reduction of staff is always difficult," Kight continued. "Santander will fully support our colleagues impacted by these changes in accordance with the company's severance policy and will offer outplacement assistance. In addition, we are encouraging all impacted employees to apply for open roles that are currently available in the Villanova location."
Santander Bank's U.S. operations and the company as a whole have faced several regulatory and financial challenges recently, and it is planning broader cuts elsewhere as well.
Among the challenges the bank is facing on the global front has been a new mortgage law in its home country that has increased consumer disclosure requirements.