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August 22, 2007

Today's Housing Bubble Post - Another Another One

-- by Dave Johnson

Accredited Home Fires 1,600, Shuts Most Operations,

Accredited Home Lenders Holding Co., reeling from the collapse of its planned sale to Lone Star Funds, will shut more than half of its mortgage operations and fire about 1,600 people.

The subprime lender expects to close its 60 retail branches and five support centers within two weeks and halted for now U.S. wholesale mortgage applications from brokers, San Diego-based Accredited said in a statement today. The cuts will shrink Accredited's workforce to 1,000 from 2,600.

And another Capital One to shutter mortgage-banking unit, cut 1,900 jobs,
The battered residential mortgage market and slumping housing sector are claiming victims left and right these days, and the Washington area is feeling some of that pain.

The latest news comes from McLean-based Capital One Financial Corp., which is ceasing operations at its wholesale mortgage-banking unit, GreenPoint Mortgage Funding Inc., resulting in the elimination of 1,900 positions.

Capital One will close GreenPoint's Novato, Calif., headquarters along with 31 locations across 19 states.

Update -- Sorry - I had Capital One yesterday. Substitute this: HSBC to close Indiana mortgage office,
The U.S. mortgage unit of HSBC Holdings PLC said on Wednesday it will close an office in Indiana, a move that will affect about 600 workers, amid a severe downturn in U.S. credit and housing markets.
And this: Ariz.-based finance firm to lay off 541, shut mortgage unit,
The widening mortgage slump hit the Valley again Tuesday as one of Arizona's largest financial firms announced the layoffs of 541 people.

Scottsdale-based 1st National Bank Holding Co. said it will discontinue its national wholesale-mortgage unit and close mortgage centers in Virginia, North Carolina and Nevada, keeping open just one operations facility, in Tempe.

Posted by Dave Johnson at August 22, 2007 7:31 AM

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Comments

More good paying jobs going away, too, with all the firings. This is so, so screwed up.

Posted by: natasha [TypeKey Profile Page] at August 28, 2007 7:49 AM

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