Flagstar Bank in Troy, Michigan, has reduced its mortgage staff by 420 employees, or 20%, since the beginning of the year, the lender confirmed Tuesday.
The bank cited declining mortgage volume as reason for the reduction, echoing mortgage firms both large and small who have made cuts in recent weeks.
“Mortgage originators today are facing unprecedented increases in interest rates and a significantly smaller mortgage market than what we experienced in 2020 and 2021,” Lee Smith, executive vice president and president of Mortgage, said in a statement. “To ensure we’re positioned to continue to successfully navigate the market, between layoffs and natural attrition, Flagstar has reduced its mortgage staff by 420 or 20% since year-end 2021.”
The report of layoffs at the bank was first shared
“At this time and in similar market-driven situations, we do not typically offer severance benefits,” a spokesperson said in response to a follow-up request. It was unclear Flagstar offered departing employees extended health benefits.
It’s the second Michigan-based lender to announce staff reductions this week. The Industry behemoth Rocket Cos. on Tuesday disclosed
Rising rates,
Flagstar has yet to announce its first-quarter results but has reported a
The lender is