Layoffs

The bank was already mulling headcount and compensation reductions in early September.

The reduction of 350-400 roles comes weeks before the Ann Arbor, Michigan-based lender is set to report its fourth quarter earnings.

The California-based wholesale lender also known as RMK Financial Corp. had hired close to a dozen account executives in December but stopped doing business on January 31.

The layoffs were a result of the bank's decision to exit the channel, a spokeswoman confirmed.

The Texas-based company is adapting to "members' needs and changes in the marketplace," which resulted in a scale down in some divisions, a spokesman said.

Despite the reduction from last year, "there are some signs that that production is coming back" in mortgage, the bank's CEO said.

The layoff round, which a spokesperson said represents "less than one quarter of one percent of the roles in the company," comes after Rocket announced a 20-person reduction in the marketing team in early January.

The majority of the positions impacted at the lending arm of real estate firm Keller Williams were related to loan processing, according to a company spokesperson.

A spokesperson confirmed that close to 20 positions were terminated due to a "reorganization" but denied that there are plans to eliminate more jobs.

The Arizona-based lender has been in business for 35 years and has branches in over 20 states.

In recent weeks, Miami-based Lendmarq has swept up more than a dozen staff members.

The firm said it would still originate and service loans out of the office where the cost-cutting measures will occur.

The laws dictating advance notice of mass terminations include various exemptions for employers and suggest employees seek any recourse through legal action.

The cut occurred across departments and included the dismissal of the company's head of mortgage.

The company reported a net loss of $84.1 million in the third quarter and blamed the performance on interest rate hikes, inflation and supply chain woes.

The layoffs at the lender's Houston, Texas headquarters caught many by surprise as upper management informed employees in October that they had enough resources to weather the market conditions.

Loan officers, processors and closers were impacted, a source said. What remains is a "skeleton crew" to run operations.

The New York-based startups also undertook large headcount reductions in the spring.

Those left unemployed say lenders have in some cases cut off critical health insurance retroactively or denied severance or an earned PTO payout. Meanwhile, three firms are accused of skirting WARN disclosures providing advance notice of mass terminations.

Redfin Corp. is shuttering its iBuying business and laying off workers for the second time in almost five months, as the likelihood of a prolonged U.S. housing slowdown continues to ripple through the industry.