New round of layoffs reaches hundreds Norez employee in Colorado, the second in the state so far this year. Prior to this, the lender recently acquired Computer Shared Mortgage Service and its subsidiaries Professional loan services (SLS).
Newrez, owned by asset management company Ruisheng Capital, is laying off 317 employees at its Greenwood Village, Colorado, plant (former SLS plant). The company has notified affected employees that their expected separation dates will begin on August 2.
A spokesman for Nurez declined to comment.
The layoffs include professionals involved in activities related to bankruptcy, customer service, defaults, foreclosures and appraisals, according to Worker Adjustment and Retraining Notification Act (WARN) notices to the state. The company-wide layoffs will affect different positions such as analysts, managers and vice presidents.
According to statistics, Newrez, the top five mortgage lenders in the United States, issued $10.8 billion in mortgage loans in the first quarter of 2024, an annual increase of 55.2% Inside Mortgage Finance (International Monetary Fund) estimate. The company had $537 billion in unpaid servicing principal balance (UPB) as of the end of March.
In October 2023, New York-based Rithm, which is diversifying as an alternative asset manager, announced the acquisitions of Computershare and SLS. This resulted in $149 billion in UPB for the Newrez services portfolio, which includes $104 billion in third-party and other services rights.
In February 2024, the company restructured Newrez’s decentralized retail mortgage business, resulting in layoffs of regional and division managers and reductions in loan officer compensation.
Another round of layoffs occurred in May related to the acquisitions of Computershare and SLS. The company said it will lay off 123 employees in Florida and Colorado starting July 1.
Rithm reported GAAP net income of $261.6 million from January to March, compared with a loss of $87.5 million in the previous quarter. Securities and Exchange Commission (U.S. Securities and Exchange Commission) Filings. This is due, among other factors, to Newrez’s active presence in the services and founding sectors.
