New Jersey-based Homebridge Financial Services will lay off 139 employees in June, three months after the acquisition of its retail division by CMG Mortgage, Inc.
A Worker Adjustment and Retraining Notification (WARN) filed with the New Jersey Department of Labor and Workforce Development shows the job cuts will affect mortgage loan officers, final “docs” associates, desktop support professionals and business solutions architects, among others.
“As a result of a sale of a portion of its business, Homebridge Financial will terminate all of its retail operations,” Philip Schild, the company’s general counsel, wrote in the document.
A spokesperson for CMG and Homebridge did not immediately respond to a request for comment.
The layoffs will happen on June 26, but an additional date of August 31 was also included in the WARN Notice. According to the document, employees will be paid their wages or salaries up to their termination date. Severance will also be provided according to legal requirements.
California-based CMG, which claims it originated over $19 billion in 2022, announced on March 6 it struck a deal to acquire Homebridge’s retail assets to increase its footprint in the channel.
Ultimately, Homebridge retained its wholesale divisions: Homebridge Wholesale and REMN Wholesale. In addition, the company’s CEO, Peter Norden, will act as executive advisor to CMG’s retail division to ensure a successful transition.
Homebridge says it has more than 1,600 associates throughout the United States and more than 180 retail branches that brought in $12 billion in origination volume in 2022.
Per Inside Mortgage Finance data, the company was the 39th-largest U.S. mortgage lender by volume last year. (CMG was the 27th-largest.)
In 2022, Mike Cagney‘s Figure Technologies struck a deal to acquire Homebridge. However, the agreement fell apart just 10 months after the announcement was made because regulatory approval did not occur quickly and demand for new technologies was too strong to wait.