California-based Winnpointe Co – doing business as Interactive Mortgage – is to lay off more than 50 employees by April.
This month, the company informed the Employment Development Department of the imminent layoff of 51 workers in line with the Worker Adjustment and Retraining Notification (WARN) Act.
Companies with 75 or more part-time and full-time employees are required by law to provide notice of layoffs involving 50 or more workers.
While the regulatory filing is unclear, it appears the 51 layoffs represent the majority of Interactive Mortgage’s remaining personnel.
A LinkedIn growth analysis indicates staff count has declined nine percent in the last six months from a peak of over 80.
A statement said: “And while the rest of the mortgage industry is still chasing after the question of how to give today’s modern borrowers what they want, Interactive Mortgage has already provided the answer with our online do-it-yourself homeowner-controlled loan process.”
Two years after its inception in 2014, the company fell foul of Washington product marketing restrictions.
The Washington Department of Financial Institutions and Consumer Services accused the corporation of unfair or deceptive acts based on statements or representations about: “Rates, points, or other financing parameters for a residential mortgage loan” in October 2016.
At the time of the order, Winnpointe was accredited by the Washington State Department of Financial Institutions to do business as a consumer loan company.
The permanent layoffs at the Orange-based company will be effective Thursday, April 7.
The filing comes as the industry braces for massive layoffs as a result of changing market forces caused by inflation. Last week, rates reached 3.92 percent – the highest since May 2019.
The Mortgage Bankers Association estimates applications to refinance mortgages have fallen by 45 percent in the last six months as borrowing has become more expensive.
That’s a far cry from the refinancing flareup of the past couple of years that saw record levels of equity-tapping from homeowners enjoying soaring property values.
The trend prompted hiring surges to keep up with refinancing demand.
The US Bureau of Labor Statistics estimated the number of brokers had expanded more than 50 percent to around 130,000 since late 2019.
Other industry players have already instigated layoffs, including mortgage lender parent company Home Point Capital laid off nearly 10 percent of its workforce, while online mortgage lender Better.com cut some 900 jobs in December.
Texas-based wholesale lender Stearns Lending LLC also announced layoffs of 348 workers.
Source: MPA Mag