Homepoint laid off around 75% of its workforce in one year

Following the latest round of layoffs, Homepoint has reduced its workforce from around 4,000 workers in the summer of 2021 to around 1,000 in the fall of 2022.

The wholesale lender laid off 913 employees last week, according to a review of worker adjustment and retraining notices filed in Arizona, Florida, Michigan and Texas. In the last year he has also sold a large part of the business – including the maintenance of ServiceMac and correspondent delegated to Planet Home Lending – which represents several thousand workers in transition to new companies.

The company’s workforce is down about 40% from pre-pandemic levels of about 1,500, a Homepoint official said. It’s down about three-quarters from the summer of 2021, when the Ann Arbor, Michigan-headquartered lender had about 4,000 total workers.

Most of the employees laid off last week were working remotely and departures will begin November 1. Positions eliminated include post-closing auditors, underwriters, loan coordinators and document review specialists.

The downsizing is expected to save more than $100 million a year for the lender, whose parent company Origin point capital reported losses of more than $44 million in the second quarter of 2022.

Amid the shrinking loan origination environment caused by high mortgage rates, Homepoint was also hit hard by an aggressive pricing initiative triggered by United Wholesale Mortgage.


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With UWM slashing prices between 50 and 100 basis points on all loans since late June, Home Point Capital CEO Willie Newman acknowledged that “competitor actions have added to the challenges of an origination cycle down leading to historic lows in market-level margins”. in its latest earnings call.

“We’re not afraid to get smaller as an organization,” Willie said, pointing to further cost reductions and liquidity actions.

Home Point Financial ranked 15th on Inside Mortgage FinancingThe list of top buy-to-let mortgage lenders in the first six months of 2022. The lender generated $12.2 billion in volume in June 2022, down 18.5% year-to-date.

Michael A. Bynum