Beneficial Finance to Close Hundreds of Offices, Cut 1500 Jobs

November 14, 2007 No Comments »

It is believed that Beneficial Finance, the non-prime retail mortgage unit of HSBC bank, will close roughly 300 offices nationwide, resulting in the loss of 1,500 jobs.

HSBC mentioned in its third quarter conference call Wednesday that it would consolidate 260 consumer lending branches (100 previously announced) as a result of weak demand and the ongoing credit crunch.

I’ve been informed that the layoffs/consolidation are going to take place over a four-week period, starting today, and will be completed by the second week of December.

Unfortunately, many current employees seem to be uncertain if the closures and subsequent layoffs will cost them their jobs.

I’ve heard that California and New Jersey are being hit especially hard by the closures, with both set to lose about half of their total branches.

Numerous other branches throughout the nation will likely be consolidated or closed in markets that are experiencing rapid depreciation.

The move follows other mortgage-related pullbacks, including the closure of HSBC’s wholesale lending unit Decision One, the closure of a Carmel, Indiana mortgage office which resulted in 600 layoffs, and the recent halt to the trade of U.S. mortgage-backed securities.

Per their website, Beneficial Finance is a mortgage lender that offers home equity loans, home purchase, refinance, and debt consolidation loans.

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