Mortgage Bankers Association Cuts 16 Percent of Staff

March 24, 2009 No Comments »

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The embattled Mortgage Bankers Association cut another 20 full-time staff positions yesterday, according to National Mortgage News.

The layoffs affected roughly 16 percent of its workforce, which has now been reduced by some 30 percent since last year thanks to ongoing contraction in the mortgage industry.

The latest cuts included four of its vice presidents, bringing the association’s workforce down to about 110 employees.

Interestingly, the layoffs have been tied to the group’s purchase of a sprawling 160,000-square foot workspace in Washington D.C. back in April.

The commercial space, valued at about $100 million, required a larger-than-expected down payment and came with an unfavorable interest rate because of the timing of the deal.

At the time of purchase, two-thirds of the building was expected to be rented to someone other than the MBA, but poor demand seems to be resulting in staff reductions instead.

The MBA has been around since 1914, advocating on behalf of its members and providing industry research and forecasts such as its widely-watched mortgage application index.

Among other things, the MBA has strongly opposed the so-called bankruptcy cramdown, which it believes would raise mortgage rates substantially, while doing little to help at-risk homeowners.

Currently, about 2,400 companies are members of the Mortgage Bankers Association, though membership has steadily fallen since the mortgage crisis got underway.

Oh by the way, the MBA is running a special right now; join now and get 50 percent off your membership dues…

(photo: holdenhelena)

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