A North Texas company, First Guaranty has laid off most of its staff after “significant operating losses.”
The mortgage lender has laid off 428 of its 565 employees.
The corporation notified the Texas and made the announcement on Friday, June 24.
The notice stated the job cuts were driven by “significant operating losses and cash flow challenges due to unforeseen historical adverse market conditions for the mortgage lending industry, including unanticipated market volatility.”
The notification also said recent efforts to get finances that may have avoided the layoff failed.
Earlier this month, the business introduced a new second lien scheme for homeowners who wanted to tap the equity in their houses without affecting their interest rate.
According to former workers, First Guaranty has stopped accepting mortgage applications.
They claim the lender has “basically shut down.”
However, in a statement issued on Tuesday, June 28, the firm said it “is continuing to fund loans and engage actively with its consumers.”
The company stated that it has paid outstanding salaries, time off, and commissions and that it is in the process of issuing severance payments to qualified employees.
The company said: “We are working closely with our financial stakeholders to navigate this challenging moment.”
JPMorgan Chase & Co. announced last week that it had cut off 1,000 staff as mortgage rates rose, reducing demand for house loans.
WHAT IS FIRST GUARANTY MORTGAGE CORPORATION?
FGMC is a full-service national lender that offers mortgage solutions to clients of varying incomes.
Where it is headquartered? The company is headquartered in Plano, Texas.
How many staff does it have? FGMC currently has 137 employees.
What is its annual revenue? The annual revenue is $99 Million.
Source: The Dallas Morning News