A focus on remaining a high-quality mortgage due diligence and credit risk company prompted a difficult decision at Allonhill with the Denver-based firm announcing the lay off of approximately 140 people.
The company's CEO Sue Allon spoke candidly with HousingWire, expressing great sadness over the lay off and explaining it had more to do with a strategic shift away from high volume processing.
For Allon, the move was more about refocusing the firm's efforts in delivering quality and high-end mortgage due diligence and credit risk reviews.
Allon said the firm is moving away from an initiative that had them doing a great deal of transaction work – an area where there is an ability to make money. Still, she said, that business model is quick, more intensive and costly. Allon, in reality, wanted the firm focused back on its strategic mission of being a high-quality due diligence provider for clients who want the best analytics.
"We have a very nice book of business," said Allon. "Our portfolio is made up of premiere institutions and [the] GSEs."
The CEO added that the shift is going back to being "exclusively and strategically" focused on being the provider of highly-valued experts and strong due diligence.