Mr. Cooper lays off 800 employees

The mortgage industry continues to shed personnel as margins grow thinner. One of the most recent lenders to hand out more pink slips is Mr. Cooper. 

The Dallas-based lender confirmed Thursday that it is slashing approximately 800 positions, calling it a “disciplined” and “proactive step to scale back the origination business.” Mr. Cooper’s spokesperson did not disclose what branches would be impacted.

“By aligning our originations operations to the smaller mortgage market, we can thoughtfully and effectively meet the needs of our current customers,” a company spokesperson said in a statement. “Mr. Cooper operates with a balanced business model including both servicing and originations, and while we are adjusting capacity in the short term, our originations platform remains central to our long-term strategy.” 

“We have a long history of successfully navigating different cycles, and we are confident these changes will further our ability to invest and grow in the future,” the spokesperson added.

This is the second round of layoffs in the past six months. In June, Mr. Cooper announced that it was laying off 420 employees, or 5% of its total employee base. The lender also laid off approximately 250 employees during the first quarter. The most recent reduction puts the layoff count to over 1,000 employees this year.

Mr. Cooper reported that during the third quarter it generated $113 million in net income. That number was down from $151 million the previous quarter and $299 million a year earlier, but analysts generally described it as good news considering the industry’s challenges.