Ohio-based Union Home Mortgage is the latest in a string of lenders this week to institute workforce reductions.
“The residential housing market has turned quickly due to historically low inventory of homes for sale and a rapid rise in interest rates due to inflation,” Cindy Flynn, chief marketing and communications officer, said in a statement. “We, like other companies in our industry, are temporarily adjusting staffing levels to accommodate rapidly changing marketplace conditions and business needs.”
The multichannel lender, which originated roughly $13 billion in residential mortgage last year, declined to provide any details about the layoffs.
Union Home Mortgage is laying off loan officers in junior and senior positions, according to former employees’ LinkedIn posts and interviews with HousingWire. Layoffs happened last week and this week, and the company provided two weeks of severance pay, one former employee said. Non-LO positions, such as processors and recruiters, were also among those laid off, former employees said.
Flynn said the statements made by laid off employees to HousingWire were “inaccurate,” but did not specify or elaborate.
UHM is the 49th-largest mortgage lender in the country, according to Inside Mortgage Finance. The lender’s origination volume increased 25.8% from 2020 to 2021, to $13 billion. In the fourth quarter of 2021, when some lenders started to report declines in their production, UHM’s volume was $4.2 billion, up 65.5% compared to the prior quarter.
During the refi boom in the last two years, the company announced the addition of a third building to its corporate headquarters in Strongsville, Ohio, with onsite gym and cafeteria. It made way for the creation of 450 new jobs after the construction ended in summer 2021. At the time of the announcement, the lender had 1,300 employees. According to NMLS data, it has 681 LOs.
In January, president and CEO Bill Cosgrove, an avid golfer, announced the acquisition of the Medina Country Club – the terms of the transaction were not disclosed. “I am a big supporter of golf as a sport, including the life lessons and friendship that come from it,” he said in a statement. “I will employ these lessons to build a world-class culture at Medina just like we have at Union Home.”
In early March, the company promoted three executives to vice president positions. Bryan Wright is the vice president of national sales and Cyndi Garza, the vice president of national business development, a new position created in the company. Meanwhile, Steve Runnels is holding the role of vice president of retail sales, east division.
Earlier this week, Rocket Mortgage, the biggest mortgage lender in the country, offered voluntary buyouts to 8% of its workforce. Flagstar Bank, one of the nation’s largest depository lenders, revealed that it has cut 20% of its mortgage staff since the beginning of the year. Wells Fargo, the top depositary in the U.S., confirmed it is also reducing its workforce, laying off processors and underwriters. Digital lender Better.com has also laid off more than 4,000 workers since December.