There’s been a lot of talk today that Deustche Bank’s MortgageIT has suffered some serious layoffs and closures nationwide in an effort to “realign” certain branch offices and operations as a whole.
From what I’ve heard and read, some branches have been shut down, while others have been slimmed down dramatically.
One mortgage broker said, “I got an email from my representative today saying sorry I would no longer be handling your loans. MortgageIT laid me and 85% of the work force off. So call to check the status of your loan files.”
MortgageIT has roughly 40 operations centers nationwide, and it is believed that cutbacks took place at many, if not all of them today.
Some ex-employees and mortgage brokers have noted that specific branches have been shut down, including locations in Detroit, Columbus, Virginia, St. Louis, Kansas City, and Tampa, though those reports haven’t yet been corroborated.
Others mentioned that the Phoenix, Arizona branch lost up to 75% of its staff in the round of layoffs that occurred today.
It is believed that some branches saw only a handful of layoffs, such as the Bellevue, WA office which had about 20, and that some of the less affected branches would take on business from nearby shuttered branches.
From what I’ve gathered, it looks like the operations side was most affected by the layoffs, though I’ve also heard talk of Account Executives being let go as a result of the consolidation.
In all, it is believed that 800 employees (some from Deutsche Bank) were let go and approximately 10 offices were shut down.
A month ago, MortgageIT was reported to have halted its subprime lending amid the market downturn, and has since shifted its focus to agency-backed, conforming loans.
The downsizing is likely a response to soft demand (lack of production) in the current mortgage market, and comes on the heels of recent, similar moves by Morgan Stanley, IndyMac, and Countrywide.
See the latest list of mortgage layoffs, mortgage lender closures, and mergers.
Update I: National Mortgage News reported 580 layoffs and Deutsche Bank released a statement regarding a reduction in its residential mortgage origination business as a result of current market conditions.
Update II: Sources say MortgageIT closed its retail lending unit on November 14th, including operations in New York and New Jersey, and that wholesale operations are winding down as well, and could possibly shutter at year-end.