AIG Unit to Shut 150 Mortgage Branches, Cut 500 Jobs

May 6, 2009 No Comments »

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AIG’s retail consumer lending unit American General Financial Services is reportedly shutting 150 offices nationwide and cutting 500 jobs.

The company, which provides first and second mortgages, as well as home equity lines of credit, across the nation, cited market conditions and liquidity constraints for the closures.

Though the contraction could also be related to the fact that AIG has been forced to sell off assets to pay back the billions of dollars in bailout money it received from the federal government.

The cuts come on top of the 179 branch closures and 380 layoffs that occurred during the fourth quarter of last year, which involved all of its offices in Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island.

American General Finance still has a hefty 1,200 offices and roughly 5,000 employees throughout the country.

During 2008, American General Finance reported a loss of $1.3 billion, a tough year for anyone in the space.

The company was founded in Evansville, Indiana in 1920, and later acquired by insurance giant AIG in 2001.

Check out the latest list of mortgage layoffs, mortgage lender closures, and mergers.

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