LoanCare lays off undisclosed number of workers

Mortgage sub-service LoanCare made a series of layoffs on June 17 as the need to help borrowers affected by the pandemic continues to dwindle.

LoanCare routinely manages its resources in conjunction with its work demands, Dave Worrall, its president, said in a statement. Due to COVID-19, Congress has mandated repairers grant abstentions to mortgage borrowers and the company had hired staff to deal with them.

“We’ve added capacity to cover needs during the pandemic and associated relief programs,” Worrall said. “The work related to these programs has started to wind down, so we have adjusted our staff.”

Forbearance loans accounted for 0.85% of managers’ portfolio volume as of May 31, down from 0.94% a month earlier, according to the latest data from the Mortgage Bankers Association. About 425,000 people are currently subject to forbearance plans.

“Serving agents are reducing remaining forbearance loans, even as the pace of monthly forbearance outflows slowed in May to a new survey low,” said Marina Walsh, vice president of analytics at the MBA industry, in a press release.

LoanCare did not disclose the number of positions cut, although it is listed as having 982 employees on LinkedIn. Membership has increased by 19% over the past two years, but there have been no additions in the past six months.

Affected employees are receiving outplacement services, Worrall said.

LoanCare, based in Virginia Beach, Va., is one of the largest contractors in the mortgage industry. Its ultimate parent company is Fidelity National Financial, which is the nation’s largest underwriter of title insurance on a holding company basis.

The company has three other offices: Jacksonville, Florida; Coraopolis, Pennsylvania; and Chandler, Arizona. A check of worker accommodation and retraining notification sites in all four states showed no LoanCare deposits.

“As the market continues to evolve and opportunities arise, our door is always open to add new members to the team,” added Worrall.

These layoffs show that no sector of the mortgage business is immune to downsizing.

While the initial cuts, including those from Better.com infamous zoom shotrather focused on mortgage sales and related personnel, some of the more recent terminations cover other areas.

Authenticate, for example, pulled about 25% of its payroll as it focused on generating revenue from existing customers instead of focusing on new ones.

Real estate brokers Compass and Redfin have also decided to reduce headcount by 10% and 6% respectively, although mortgage economists still predict the purchase loan segment remain strong throughout 2022.

Reverse Mortgage Lender American Advisory Group also laid off an undisclosed number of employees. The reverse mortgage product, while still a small portion of total mortgages, is designed to serve seniors who are home-rich but cash-poor, which should help boost business in the current economic turmoil.

Other recent layoffs from Wyndham Capital, FirstBank and Open Mortgage involved term mortgage sales staff.

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