PennyMac, Radian and others announce more layoffs

More players in the mortgage space are trimming their workforce as the industry discloses third quarter performances alongside still-muted loan activity. 

Pennymac will lay off 70 workers effective Dec. 30 across five Southern California locations, it disclosed last week in California Worker Adjustment and Retraining Notifications. It’s the lender’s latest round of cuts after letting over 400 personnel go earlier this year. 

“Due to the current market conditions, Pennymac took the challenging, but necessary steps to reduce expenses,” the company said in a statement. “In some cases, that meant discontinuing working with vendors. In other cases, it meant moving employees to other teams or positions where there is a greater need for staffing. In addition, limited, organization-wide reductions in staff have been communicated to affected employees.”

Impacted Pennymac workers are being offered severance and the lender said it’s set up a recruiting channel for displaced employees, where individuals eligible for rehire can apply for open requisitions and work with Pennymac’s recruiting team. 

The WARNs were filed two days before Pennymac disclosed its third quarter earnings, in which it reported $135.1 million in net income, a slight increase over the previous quarter. Pennymac has reduced its operating expenses in each of the past three quarters and will continue to adjust its expense base as the market evolves, according to a third quarter earnings presentation.

Mortgage insurance firm Radian Group also revealed cuts affecting 166 workers effective Dec. 31 from two offices across Pennsylvania. The Philadelphia-based business made the move in response to the market’s heavy and steady decline. 

“These changes are deeply difficult, but they are a necessary reflection of current market conditions that will enable us to manage expenses and maintain our strong position over the short and long term,” said Radian in a statement. 

Impacted employees include 66 personnel at a Wayne, Pennsylvania office outside of Pittsburgh, and 100 staff at a Coraopolis, Pennsylvania location outside of Philadelphia. The company said its offering severance pay, benefits, outplacement services and job training to the affected workers. 

Radian will report its third quarter earnings results after market close Wednesday. During the second quarter, the firm reported an increase in net income to $201.2M and relatively flat new insurance written at $18.9 billion from the first quarter.

Online notarization software provider Notarize also announced layoffs last week, confirming 60 employees terminated. The Boston-based firm’s latest cut leaves it with 250 personnel across the country. Terminated workers are receiving severance and extended health benefits.

The move was first reported by the Boston Business Journal.

“The reorganization impacted nearly all teams and the decision was in service to the larger strategy we have been enacting at Notarize, and will enable us to move faster to best serve our customers,” Notarize said in a statement.

In June, the company attributed a 25% headcount reduction to a shift in focus on growing existing partnerships over customer and partner acquisition, and looming economic uncertainty. 

Steeper cuts were also recently announced by iBuyer Opendoor Technologies and major lender Finance of America. 

Opendoor is cutting its payroll by approximately 18%, or around 550 employees in response to the market’s woes, said Eric Wu, CEO and co-founder, in a blog post Wednesday. It’s giving departing personnel at least 10 weeks of pay, three additional months of health insurance. Wu disclosed the company had reduced its headcount by over 830 workers prior to Wednesday’s announcement.