Market Street Mortgage Layoffs

October 8, 2007 Comments Off

Market Street Mortgage, the retail mortgage division of now defunct NetBank will cut 182 jobs, according to a Worker Adjustment and Retraining Notification filed with Florida’s Agency for Workforce Innovation.

The layoffs will occur at the lender’s Clearwater, Florida facility, and could be a sign that the ailing mortgage lender will ultimately close its doors.

Last week, the FDIC said it had multiple offers for the mortgage unit, and was hoping to have a buyer lined up by Friday, though the sale appears to have been delayed as the mortgage lender’s fate continues to hang in the balance.

Parent company NetBank told the FDIC last month that it would take a $24.6 million non-cash impairment charge in the second quarter related to the carrying value of goodwill assigned to Market Street Mortgage.

Tampa-based Market Street Mortgage, which made $3.2 billion in mortgage loans last year, was acquired by NetBank in 2001, and was believed to have 590 employees in 16 states prior to the layoffs.

No new loan applications are currently being accepted by Market Street Mortgage, and only loans approved prior to September 28th will continue to be processed and fund so long as conditions are met.

On a positive note, a joint venture between Regional Vice President Mark Cady and Primary Residential Mortgage, Inc. (PRMI) will save roughly 80 Market Street Mortgage jobs in Texas.

Cady has ironed out a deal with PRMI to provide financing and operational support to his newly formed, “Flagstone Lending Group”, which will consist mainly of ex-employees from Market Street Mortgage.

“This arrangement will enable us to hardly skip a beat and move forward serving our customers. We’re confident that Flagstone Lending Group will provide the same exceptional products and services that Market Street customers have come to expect,” Cady said.

Update: FDIC says Market Street Mortgage will be broken up and sold in pieces, and only 53 jobs will be lost.

Check out the latest list of closed lenders, mortgage layoffs and mergers.

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