Countrywide Specialty Lending Group Rumored to Close Today

September 13, 2007 No Comments »

In a recent memo to staff and public, Countrywide said it would be winding down its Specialty Lending Group as part of its massive “restructuring”.

“We will be consolidating our “Specialty Lending Group” sales force with our prime sales organization thereby creating a single wholesale sales team offering our entire product line to our mortgage broker customers, and working together to continue growing our Wholesale market share.”

Well, rumors are swirling that the Countrywide Specialty Lending Group (SLG) is shutting down operations today.

Obviously consolidation translates to confluence, but it also means layoffs for the unlucky few deemed redundant.

In recent months, the mortgage lender hasn’t accounted for much business mainly because of the deteriorating secondary mortgage market and revised guidelines that minimized its output.

Back in March, massive layoffs were reported in the subprime unit, with varying reports estimating 50-70% of the sales force being cut, though those reports were heavily refuted.

According to the CW website, the Countrywide Specialty Lending Group is designed for borrowers who “who do not fit the conventional mold.”

Unfortunately, the market doesn’t have the time, money, or the patience for these people anymore.

In related news, Countrywide employees have informed me that 147 employees were cut Wednesday at the Westlake, CA facilities.

I’ve also heard that Full Spectrum Lending is shutting down 45 branches this month, and that several RVP’s have been demoted and stationed in branch offices slated to close.

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