Sources: Morris Schneider Wittstadt declaring bankruptcy, closing immediately

Sources: Morris Schneider Wittstadt declaring bankruptcy, closing immediately

LandCastle Title’s operations will not be affected

8 avoidable mistakes first-time homebuyers keep making

Stop doing these things

Trending Thursday: CFPB data collection worse than the NSA?

Slowly but surely GSE shareholders cutting into Treasury, FHFA secrecy

Genpact Mortgage Services to lay off 65 employees in Richardson, TX

More proof of a changing mortgage industry?


At the start of 2013, HousingWire noted that the year would bring mergers, consolidation and possible layoffs as servicers and originators -- as well as firms offering them services and products -- struggle to find their footing in a transitioning mortgage market.

As further proof of that, Genpact Mortgage Services Inc., a wholly-owned subsidiary of Genpact International Inc., advised the Texas Workforce Commission this past week that it intends to lay off 65 employees – eight of them salaried workers, the rest hourly positions.

The job cuts, which are the subject of a notice filed with the state this month, will affect Genpact’s Richardson, Texas, facility. The cuts are set to begin on Feb. 17.

A spokesperson for Genpact could not be immediately reached for comment.

Genpact offers business process outsourcing in the form of mortgage processing and originations.

As early as September, HousingWire reported that a drop in mortgage applications -- or lower volumes overall -- had some mortgage analysts forecasting additional mortgage-related layoffs. At the time, loan applications had fallen as much as 13.5% after a two-year refinancing wave that started in 2011.

"There may be ongoing residual efforts to get the remaining HARP-eligible borrowers refinanced but those efforts are likely to be impeded by a potentially severe contraction in mortgage banking staffing," explained BofAML mortgage-backed securities strategists Chris Flanagan and Adam Katz at the time.

They added, "We think there is a significant chance that new lows in industry employment levels will hit over the next year and the lack of staffing will create a new negative feedback loop that further tightens mortgage credit availability."

Recent Articles by Kerri Panchuk

Comments powered by Disqus