Retreat Capital Management to cut 73 North Texas jobs
Cloudy outlook for the servicing space as cuts loom
Another major servicing firm announced layoffs this week.
Retreat Capital Management filed a noticed with the Texas Workforce Commission in Austin, announcing the impending layoff of 73 employees at its facility on Commerce Drive in Irving, Texas.
The reduction is scheduled for October, giving the employees two months notice.
"This layoff is the result of economic necessity due to the need to adjust the size of our workforce to a level consistent with our current client partnerships and projected opportunities," an executive with the firm wrote in its warn notice. "This layoff is expected to be permanent."
Retreat Capital Management is headquartered in Irvine, Calif., and operates a Southwest location in Irving, Texas.
The firm offers banks and lenders, as well as loan servicers and investors, various loan servicing options.
A representative for Retreat Capital could not be immediately reached for comment.
However, the servicer’s announcement fits squarely within the narrative that is slowing emerging in the servicing space — namely that fewer defaults, which is good news for the housing market, equates to less servicing and a reduction in the manpower required to staff servicing shops.
In June, OneWest Bank announced plans to slash 725 positions at a customer service facility in Austin.
Mega bank Wells Fargo (WFC) also said it would cut 763 staff positions earlier this month.