More layoffs at Newrez, trimming 78 employees in Arizona

Newrez let go of dozens of its Arizona employees in late June, further trimming workers of acquired Computershare Mortgage Services.

The top-ranked mortgage lender, owned by asset manager Rithm, let go of 78 former Computershare workers based in Tempe, Arizona, per a WARN notice filed on June 28.

Newrez decided to reduce some of its newly added workforce in certain geographies because it was creating redundancies, said a company executive. Employees impacted are entitled to a severance package and Newrez will be offering job transition assistance, they added Monday.

Since its acquisition of Computershare Mortgage Services and affiliate Specialized Loan Servicing LLC., hundreds of employees have been axed by the mortgage lender. It is not uncommon for repetitive positions to be eliminated following the completion of an acquisition, industry stakeholders have noted.  

Thus far, reductions have hit offices in Florida, Colorado and now Arizona, with the total tally of employees let go lurching over the 500 mark.

Roles impacted have included numerous executive positions, data analysts, client relations associates and mortgage loan processors. 

The purchase of Computershare cost Rithm close to $720 million and was paid for through a mix of existing cash and available liquidity on the balance sheet, as well as additional mortgage servicing rights financing. The deal was announced late last year and closed in early May. 

Integrating the company and its affiliate adds $149 billion in unpaid principal balance of MSRs to Newrez. This includes $104 billion in third-party servicing to Newrez's portfolio, the company said in a press release.

It also further expands Newrez's presence in servicing, something the mortgage lender has been prioritizing. Servicing is considered to be the natural hedge to originations as interest rates rise, and the opposite is true when they fall. 

"SLS will further expand our robust subservicing business and bring with it a great reputation in the market – the team and Newrez share a commitment to delivering a best-in-class experience to both clients and homeowners," said Baron Silverstein, president of Newrez, in a press release in May. "The power of the combined platform will strengthen Newrez's positioning in the market."