Quicken Loans Cuts 250 Jobs

June 20, 2008 No Comments »

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I was wondering when this would happen, as things seemed a little too quiet at Quicken Loans considering the ongoing mortgage crisis.

The Livonia, Michigan-based mortgage lender, which has a sizable 3,500 employee workforce, announced today that it cut 250 jobs throughout all departments in multiple locations, partially as a result of lower mortgage production.

Quicken Loans spokeswoman Elizabeth Jones said the cuts were made to align staff with the company’s current loan volume, but stressed that no further layoffs were planned.

She also attributed the cuts to Quicken’s increased reliance on automated and online systems for mortgage processing and other duties.

Funnily enough, the press release claims that Quicken Loans was not a subprime lender, but they definitely pushed option arms rather aggressively in recent years.

In fact, it wasn’t long ago that the company was touting its Quicken Secure Advantage Loan on national television, a typical four-payment option negative amortization loan.

But nowadays it appears as if the company is just offering the basics, like FHA loans, reverse mortgages, and 30-year fixed mortgages with 10-year interest-only options.

The release noted that the company had weathered the storm better than nearly all other companies, although it’s not clear how or why.

Quicken Loans, a unit of Rock Holdings Inc., is the self-proclaimed largest online lender in the nation, supported by physical locations in Livonia, Cleveland, Scottsdale, and San Diego.

The company sponsors the Quicken Loans Arena in Cleveland, home of the Cavaliers and the Lake Erie Monsters hockey team.

(photo: russelljsmith)

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