Shades of the 2000-2001 Tech Crash: Mass Layoffs at Mortgage Firms Going Largely Unreported

[The Cleaner]

So now are those who denied the housing bubble was NATIONAL going to eat crow? That a crash was never going to happen and housing prices were never going to fall? That all is rosy and will continue to be rosy forever?

Oh the irony. Shades of the dotcom crash of 2000-2001.

I feel sorry for those who were just trying to make it in positions that were non-sales. I do not feel sorry for those who ripped off the public all the while knowing what they were peddling was nothing more than snake oil.

(Updated July 26, 2007. Citigroup and new Impac Mortgage layoffs added.)

Announced and reported layoffs at major Orange county mortgage companies:

Acoustic Home Loans, Orange. Closed in April 2006. Laid off 203 people.

ACC Capital Holdings, Orange. Laid off an estimated 3,000 of the 6,000 employees at its Ameriquest Mortgage Co., Argent Mortgage Co.and AMC Mortgage Serviceson March 15. Reported 1,072 layoffs in Orange County as of June 22 to the EDD. Last year, the companies laid off more than 4,000 people.

BNC Mortgage LLC, Irvine. Reported 94 layoffs to the EDD, effective Aug. 12.

Citigroup Inc., Brea. Reported 77 layoffs to the EDD effective June. 29.

Countrywide Home Loans, Anaheim. Reported 59 layoffs in January to the EDD.

ECC Capital, Irvine. Sold its mortgage operation to Bear Stearns in February but said it would keep its 350 local workers. The company laid off about 600 people nationwide last year.

Express Capital Lending, Newport Beach. Reported 36 layoffs March 30 to the EDD.

Dana Capital Group, Irvine. The lender reportedly closed the first week of May. Layoffs unknown.

Ditech.com, Costa Mesa. Reported 181 layoffs effective July 3 to the EDD.

First NLC Financial Services LLC, Orange. Reported 113 layoffs in March to the EDD.

First Street Financial, Irvine. Ceased operations June 15. Layoffs unknown.

Fremont Investment & Loan, Brea. The company announced March 2 that it was exiting the subprime business after federal regulators issued a proposed cease and desist order. Reported 62 initial layoffs in Anaheim March 5 to the EDD. Additional reported layoffs in Anaheim and Brea brings total to 470 as of Aug. 6.

H&R Block Mortgage Corp., Irvine. Announced 50 layoffs May 17. The company reported additional layoffs effective July 10 bringing the total to 183.

Home Loan Center Inc./Lending Tree Loans, Irvine. Reported 271 layoffs effective July 10 to the EDD.

Homeview Lending Inc., Lake Forest. Reported 21 layoffs March 16 to the EDD.

Impac Mortgage Holdings Inc., Irvine. Announced May 9 that it laid off about 100 people out of about 800 in its workforce nationwide. On July 25, the company said it would lay off an additional 190 workers nationwide, including 43 in Orange County.

IndyMac Bancorp., Irvine. Announced 400 layoffs nationwide July 19 including 20 in Irvine.

Master Financial Inc., Orange. Stopped lending March 14. Reported 50 Orange County layoffs to the EDD.

New Century Financial Corp., Irvine. Filed for bankruptcy April 2. An initial 2,000 workers were laid off nationwide, including nearly 500 in Orange County. The company reported to EDD that as of May 4, it had laid off a total of 1,051 people in its Irvine and Santa Ana offices.

Novastar Mortgage Inc., Lake Forest. Reported 56 layoffs March 16 to the EDD.

Opteum Financial Services, Foothill Ranch. Reported 130 layoffs as of June 23 to the EDD.

Option One, Irvine. Parent company H&R Block said in November that it would sell Option One and close 12 branches, none in Orange County. On May 16, it announced 615 layoffs nationwide, including 133 in Orange County.

People’s Choice Home Loan, Irvine. Filed bankruptcy March 20. Reported 242 layoffs effective May 22 to the EDD.

Quick Loan Funding, Costa Mesa. Owner Daniel Sadek told the Orange County Register in May that the company payroll had shrunk from 700 at its height to about 125 now.

ResMae Mortgage Corp., Brea. Filed bankruptcy Feb. 12, saying it would keep 800 out of 1,037 jobs. Reported 185 layoffs effective May 19 to the EDD.

WMC-GEMB Mortgage Corp., Costa Mesa. Reported 29 layoffs effective May 7 to the EDD.

WNC-GEMB Mortgage Corp., Costa Mesa. Reported 59 layoffs effective June 18 to the EDD

http://www.ocregister.com/money/strong-layoffs-reported-1690495-edd-mortgage

HOUSTON --A Houston-based mortgage company that stopped taking new applications and said it could not meet its current obligations laid off a "substantial" number of its 1,300 workers on Tuesday.

Aegis Mortgage Corp., whose owners include private-equity firm Cerberus Capital Management, said Monday that, despite the business slowdown, its branches were open and its workers were on the job.

The layoffs, the company said Tuesday, came as a result of the problems in the secondary mortgage market.

http://www.boston.com/business/articles/2007/08/07/houston_mortgage_company_lets_workers_go/

First NLC is laying off almost half its employees as the vice tightens on the subprime lending market.

The Boca Raton-based company said 640 employees, 120 of them at the home office, were told of the layoffs Wednesday, less than a week after Sun Capital Partners agreed to buy a majority stake in the company for $60 million... Melville, N.Y.-based American Home Mortgage Investment Corp. has closed most of its mortgage operations and plans to immediately lay off 7,000 employees, according to Chief Executive Officer Michael Strauss.

http://www.bizjournals.com/boston/othercities/southflorida/stories/2007/07/30/daily48.html?b=1185768000%5E1501869

GreenPoint Mortgage, a unit of Richmond, Va.-based Capital One, laid off 70 employees, including nine at the company's Novato headquarters. About 20 percent of GreenPoint's 2,800 employees works in Marin County. The company makes so-called "Alt A" mortgages, which go to borrowers that fall between prime and subprime. A big part of GreenPoint's business is making jumbo loans, those that exceed Freddie Mac and Fannie Mae's loan limit of $417,000. Coastal California is a big market for jumbo mortgages.

Another broker hard hit by the downturn is Lending Tree, which funnels loan applications to lenders across the nation. The Charlotte, N.C., company said this month it will lay off 440 workers, or 20 percent of its staff.

San Rafael mortgage broker Paul Financial let go of 36 employees this month. Of those, 25 worked in the San Rafael headquarters. The company's workforce totals about 180 employees.

http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2007/05/21/story4.html

[valerief]

1. That's okay. I hear Bootstraps are part of their severance package. nt

[Speck Tater]

2. No problem. Severance package includes an eBay seminar. nt

[Sapere aude]

3. And tips on dumster dunking

[The Cleaner]

4. I was laid off in the tech crash

didn't even get a severance! :mad:

But I think this housing crash may hit the economy even harder. I think they just don't want people to PANIC.

[The Cleaner]

5. And of course this biggie...American Home Mortgage...6000 Workers...

LONDON (MarketWatch) -- Troubled lender American Home Mortgage Investment late Thursday said it's going to lay off over 6,000 workers and stop taking mortgage applications as it struggles to avoid bankruptcy.

American Home, which was the country's tenth largest mortgage lender, said it's cutting its employee base from over 7,000 to approximately 750, but will maintain its thrift and servicing businesses.

http://www.marketwatch.com/news/story/american-home-mortgage-lay-off/story.aspx?guid=%7B4296631D-F768-4699-95D3-71A904976E21%7D

[The Cleaner]

6. I'm surprised this didn't get any traction

just sayin
:shrug:

I think it's historical; as much so as the tech stock crash of 2000-2001. I should know, I was laid off in 2001 from a tech company. To see it happening again with yet another bubble burst I think is historical.

Anyone?