Dovenmuehle Mortgage, Inc., a subservicer for the financial services industry, made the decision to "operate with a smaller footprint" by laying off 212 employees going into the new year.
The subservicer moved to trim its staff "due to a reduction in the number of loans subserviced," the company wrote in an internal communication shared with National Mortgage News.
"Current
The layoff, which impacts the company's headquarters, goes into effect Feb. 16, 2024, according to a Worker Adjustment and Retraining Notification Act notice filed in Illinois. It is uncertain what positions were trimmed.
The subservicer does not "anticipate needing further reductions in workforce" going forward, it said in an email to employees on Dec. 15.
Donvenmuehle itself declined to comment, noting it does not share information on internal matters, including workforce details.
The company, founded in 1844, subservices portfolio loans, as well as loans sold to Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Home Loan Bank with servicing retained.
Its proprietary technology "helps lenders reduce servicing costs and deliver consistently high levels of service to homeowners while maintaining compliance with investor and regulatory requirements," Dovenmuehle said on its website.
Elevated interest rates and low origination volume has
The tide may be turning, with the 30-year fixed rate mortgage slinking below 7%, in mid-December and
"Given inflation continues to decelerate and the Federal Reserve Board's current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year," said Sam Khater, Freddie Mac's chief economist,
