Movement Mortgage announced it plans to lay off 100 of its employees across four locations as of June 1, 2018.
The company explained it is growing slower than it expected this year as the mortgage industry faces lower originations.
“At Movement, we have a commitment to long-term growth and impact,” Movement Mortgage CEO Casey Crawford told HousingWire.
“This year, we are growing slower than we expected. This is a challenge, not just at Movement, but across the entire mortgage industry. We believe our decision to adjust our operations is in the long-term best interest of our entire Movement community,” Crawford said. “We also stand by our teammates who are affected and will make sure they have access to the multiple resources as they take their next career steps.”
The majority of those affected were based in the company’s Norfolk, Virginia, operation center, accounting for 52 layoffs. Another 26 were based in Tempe, Arizona, 18 in Fort Mill, South Carolina and four in Richmond, Virginia.
Those laid off will all receive severance pay along with extended financial counseling and Employee Assistance Program benefits, Movement said.
The company explained that these layoffs represent only a small portion of its staff, and it continues to employ more than 4,000 team members across the U.S. The company also said that it has been profitable every year since it was founded in 2008, and expects to see another profitable year in 2018.
The company is still actively recruiting loan officers and plans to grow its sales force this year, it said in a statement to HousingWire.
“We are confident in our vision to be the leading purchase mortgage lender in every market we serve,” Crawford said. “We are actively recruiting loan officers to grow our sales force are committed to long-term growth in all of our operations campuses. We have many years of growth and significant impact in our future.”
This is the second time this year that Movement Mortgage has trimmed its staff. Back in February, Movement laid off approximately 75 employees.
At the recent Mortgage Bankers Association Secondary conference in New York City, MBA Chief Economist Mike Fratantoni said as mortgage refinances fall and purchase originations are unable to make up the difference, many lenders will see their profits go negative in the first quarter this year.