SCME Layoffs and Branch Closures

August 31, 2007 No Comments »

According to inside sources, there have been a number of layoffs and branch closures at SCME Mortgage Bankers Inc. over the last two days.

The layoffs and branch closures occurred late Thursday and Friday in response to warehouse lenders restricting their credit lines.

I’ve been told that SCME closed the Encino (CA) and Sacramento branches, cut 60% of the jobs in the E-business unit, about 10% of the other departments in corporate, and slashed salaries of retained employees.

Layoffs occurred in QA, Capital Markets, Post Closing, Credit Policy, and other divisions within the company.

Apparently there’s been a large increase in deficiency rates, making it extremely difficult for the mortgage lender to unload loans on the secondary mortgage market.

I will have more information as it unfolds, but the company is clearly under stress as a result of the recent mortgage woes.

SCME Mortgage Bankers Inc. is a wholesale/retail lender with 11 branches, 7 of which are located in California.

See the complete list of mortgage layoffs and closed lenders.

Update: SCME ceases wholesale operations.

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