HSBC Closing Mortgage Office

August 22, 2007 No Comments »

London-based HSBC announced today that it will close a mortgage office in Carmel, Indiana by the end of the second quarter of 2008.

The closure will result in roughly 600 mortgage layoffs, affecting underwriters, processors, and sales staff.

The company said the employees will be offered other opportunities at the bank, and/or severance packages.

The move is part of a restructuring plan by HSBC to clean up its United States mortgage unit amid the heavy losses felt in the industry.

HSBC offices in Southern California, Phoenix and Las Vegas will absorb some of the workload as the company continues to streamline operations.

The mortgage lender has also set aside $1.7 billion for loan losses in the first quarter, thanks mainly to high-risk subprime loans the company formerly offered.

Earlier in the year, HSBC consolidated operations within its wholesale division, Decision One Mortgage, centralizing operations and cutting operating centers down from 17 to 2.

I took a quick look at Decision One Mortgage ratesheets this morning, and it appears they are still offering loans to borrowers with credit scores as low as 520, which is certainly subprime at its finest…

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