Subprime mortgage loan servicer HomEq plans to shed 901 jobs as a result of its takeover by another subprime servicer, Ocwen Financial, according to the Sac Bee.
Employees at the North Highlands-based company located just outside of Sacramento will be laid off by November 19 – and the massive HomEq facility will be shuttered by October 31.
Ocwen disclosed the layoffs in a Worker Adjustment and Retraining Notice (WARN Act), saying 452 employees would be laid off on Halloween, and another 453 will be let go before November 19.
A HomEq office in Raleigh, North Carolina will also lay off 242 employees on October 31.
Most of the jobs are expected to be outsourced to Uruguay and India.
Workers who were laid off yesterday said they will receive 60 days of severance pay, but will remain “on call” for the company for those two months.
West Palm Beach, Florida-based Ocwen Financial Corp. purchased HomEq in May for $1.3 billion.
Check out the latest list of mortgage layoffs, mergers, and closures.