Morgan Stanley said today that it will cut roughly 1,000 jobs as part of a massive pull back in residential mortgage lending as conditions continue to deteriorate.
“Given the continued dislocation in the mortgage markets, we have restructured our residential mortgage business to ensure we are appropriately positioned for the environment going forward,” said Anthony Meola, chief operating officer of the U.S. residential business, in a statement.
Per the Saxon wholesale website:
“In order to avoid disruption to borrowers, all locked loans will be honored provided that they are funded by their commitment expiration date. Please contact your regional operations center with any questions regarding the status of a loan.”
“It has been our pleasure to serve you over the years and we wish you continued success.”
Morgan will continue to service mortgages in the U.S. through its Saxon Mortgage Services unit and offer residential mortgages to brokerage clients through Morgan Stanley Credit Corp, which will be left with roughly 100 employees after the cuts.
Bloomberg also reported that Morgan Stanley may cut as many as 40 jobs within its securitization business in Japan.
Morgan Stanley acquired Advantage Home Loans in December 2005 and then bought Saxon Capital for $706 million a year later.
Shares of Morgan Stanley were up 31 cents, or 0.73%, to $43.02 in afternoon trading on Wall Street.
See the latest list of closed lenders, mortgage layoffs, mergers and rumors.