Pennymac laying off 190 more workers, including 69 LOs

Pennymac is further cutting its staff, with additional Worker Adjustment and Retraining Notification filings in California to eliminate a total of 190 positions.

It joins Better.com in making multiple employee cutbacks since late last year. The latest from Pennymac follows March filings that identified 236 positions to be permanently terminated effective in May.

“Following a measurable industry-wide reduction in U.S. mortgage applications, originations and refinancing, Pennymac is continuing an ongoing review of its operational workforce needs,” a statement from the company said. “Unfortunately, as a result of decreasing consumer demand in the transitioning mortgage market, targeted, demand-based reductions are being made.”

The affected workers are being offered severance and access to health insurance while they seek new employment, the statement added.

The two single largest notifications involve the Thousand Oaks office, where 77 back office people will be permanently laid off, and Moorpark, where 52 positions are being eliminated. The notices, filed on May 9 state the moves are effective July 8.

The Moorpark reductions include 16 with titles in the servicing and default part of the business, according to copies of the filings obtained from California’s Employment Development Department.

These filings took place after Pennymac’s origination and servicing subsidiary, PennyMac Financial Services, reported first quarter net income of $173.6 million, compared with $176.1 million in the fourth quarter and $376.9 million during the first quarter of 2021. But the production segment’s pretax income was $9.3 million, down from $106.5 million in the previous quarter and $362.9 million year-over-year. That was a result of PennyMac Financial’s net gain-on-sale falling to $221.6 million from $314.8 million in the fourth quarter and $516 million one year prior.

Pennymac filed its first notices regarding this round of layoffs on April 28, with loan officers occupying all positions being eliminated: 21 in Pasadena, 13 in Roseville and 25 in Westlake Village. All of the terminations are effective on June 27. The May 9 filings indicate a second round of terminations in Pasadena, this time for 14 back office staffers.

Pennymac submitted a WARN notice for three employees in other departments on April 28 and filed two others on May 9, which covered seven workers.