Kondaur letting go nearly half of staff
Thirty-nine percent of employees at nonperforming loan investor Kondaur Capital received pink slips Monday morning. The layoffs — 155 of the company's 398 employees — will become effective on April 18 unless banks start freeing up nonperforming loans for sale. Kondaur Chief Executive Jon Daurio said his company is having a difficult time sourcing nonperforming mortgages for purchasing. He blamed robo-signing and other servicing issue as gumming up the works. He believes banks also may be holding onto the loans thinking that prices may begin to see improvement. "In the long run, kicking the can further down the road on distressed property sales will only depress prices further," he said. "The country needs to rip the band-aid off and let the healing begin. The depth and length of house price declines would be more shallow than what is currently happening if we could begin to earnestly begin working through this unbelievable backlog of bad loans," he added. Should the housing market reverse course, and banks start to unload inventory, then he may be likely to rescind the termination notices. Write to Jacob Gaffney. Follow him on Twitter @JacobGaffney.