Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

Why brokerages and mortgage lenders are rushing into JVs

Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy.

Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

Robert Dietz on why the single-family rental market is growing

In this episode of HousingWire Daily, NAHB's Robert Dietz explains why the marketshare of single-family rentals is growing despite strong homebuyer demand. He also discusses the NAHB’s latest Housing Market index.


Blame Citi layoffs on shifting mortgage landscape

Institutions reduce staffing levels to match lending demand

As demand falls for new loans, especially refinancings, banking institutions are cutting back and letting go of workers who specialize in originations.

The trend continued this week with CitiMortgage (C) announcing the elimination of 1,000 positions in underwriting and mortgage-default operations, explained Citigroup spokesperson Mark Rodgers.

More than 750 job cuts will take place in Las Vegas, 100 cuts will happen in Irving, Texas, and the remainder will take place around the country.

"While difficult, these actions reflect our ongoing efforts to increase operational efficiency, adapt to changes in the marketplace, and position the business for the future," Rodgers said.

He added, "Citi will help impacted employees identify opportunities both inside and outside of the company. Impacted employees will be eligible for Citi severance benefits and transition support."

The massive layoffs reflect the banking sector’s efforts to restructure the mortgage side of their businesses to keep up with market realities.

The rise in interest rates and an increased competition within the sector continues to put pressure on the lending business.

"The mortgage refinance business historically has been a cyclical industry, enjoying periods of strong growth followed by periods of decline volumes," pointed out Royal Bank of Scotland (RBS) analyst Sarah Hu.

She added, "Given that, I don’t think the layoff from large banks is a real surprise. However, I do think all of these layoffs are because of rising mortgage rates we’ve seen over the recent months."

Additionally, some job cuts could be due to a dramatic decline in Home Affordable Refinance Program refinances, which is not directly related to rates movement, Hu noted.

Citigroup is not alone in this transition. As demand for loan servicing falls and the originations market becomes purchase-heavy, banks are caught trying to build new streams of revenue while simultaneously getting rid of services now in low demand.

BB&T (BBT) recently announced that it plans to cut more mortgage division jobs next year as the bank adjusts to falling refi applications.

However, it will not be clear until next year the location and amount of jobs on the line.

Wells Fargo (WFC) recently announced 763 mortgage-related layoffs. JPMorgan Chase (JPM) wasn't far behind, cutting more than a thousands jobs combined in Florence, S.C., and San Diego. Falling demand for loan servicing prompted those cuts as well.

Back in February, JPMorgan said a series of cuts over the course of the next year would lead to 13,000 to 15,000 layoffs.

Most Popular Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

Oct 18, 2021 By

Latest Articles

GSE forbearance rate declines to 1%

Servicers’ forbearance portfolio volume declined at a reduced pace this week, as mortgage holders exit COVID-19 plans at the beginning of the month, according to the MBA.

Oct 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please