Mortgage

Freedom Mortgage laying off 171 mortgage servicing employees

Employees will be laid off starting in June

Freedom Mortgage was in growth mode last year, acquiring J.G. Wentworth Home Lending and inking a deal to acquire RoundPoint Mortgage Servicing in the last 12 months alone.

But with acquisitions of this kind, there are often “synergies” between the acquiring company and the acquired company that lead to layoffs.

And it’s no different for Freedom Mortgage, as the company recently disclosed that it plans to lay off 171 employees in California and shutter its mortgage servicing office in the state.

Last month, Freedom Mortgage filed a notice with the state of California that it plans to lay off employees in the company’s San Dimas office. The layoffs are classified with the state as “closure permanent,” indicating that the company is planning to close the office.

Details on the layoffs are scarce beyond what’s listed by the state of California. Repeated attempts to contact the company for more information on the layoffs went unanswered.

The layoffs were first reported by the Southern California News Group, which spoke to an employee at the San Dimas call center, which housed Freedom mortgage servicing employees.

From the SCNG report:

According to one employee, who requested anonymity fearing retribution from supervisors, the staff was informed of the pending layoffs in mid-February.

The employee told the Southern California News Group the San Dimas staff was hopeful a visit in February from corporate officials would bring good news; instead, they were told their jobs were being eliminated.

The report states that Freedom Mortgage will continue to originate and service mortgages in California, but will service the mortgages from another office location.

RoundPoint has its own substantial servicing operation. When the companies announced the acquisition last year, RoundPoint disclosed that it services and sub-services approximately $91 billion in mostly agency loans.

The companies stated that the deal would increase Freedom Mortgage’s portfolio of mortgage servicing rights to more than $300 billion, making it the seventh-largest servicer in the U.S.

According to the details provided to the state, the layoffs will take place beginning June 1, 2020.

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