Carrington Cuts Staff From Wholesale

Nov 03, 2022

Staff Writer

Around 100 staff members were laid off, according to a source that works for the company.

KEY TAKEAWAYS

Carrington joins the list of lenders that have had to make layoffs due to turbulent market conditions.
This news accompanies The Fed’s announcement to hike interest rates by 75 basis points.
A recording of the call announcing layoffs was shared with NMP last night.
The employees were provided a severance package, but were told they could not receive it until their equipment is returned.

Carrington Mortgage Services laid off around 100 wholesale staff members on Tuesday, Nov. 1, according to a source who works at the company.

A recording of the call announcing the layoffs was shared with NMP, confirming that at least 18 employees were laid off. However, a source from Carrington said the total number was around 100 employees.

“Based on the current market conditions and where the market is trending, we had to make some difficult decisions to reduce our staff across lending and the wholesale realm,” a company official said on the call. “Unfortunately that does impact your position with Carrington effective today.”

Affected employees were provided a severance package, but were told they would not receive it until the required equipment is returned. Additionally, employees were told to remove Carrington email and applications from their devices immediately.

Employees were told of the layoffs as the Federal Reserve announced another hike in interest rates by 75 basis points, which likely will result in even higher mortgage rates, dissuading more buyers from taking on a mortgage in an already tough market environment.

Carrington joins a growing list of lenders that have made layoffs due to turbulent market conditions, along with Homepoint Mortgage, Angel Oak Mortgage Solutions, and Finance of America.

About the author

Staff Writer

Katie Jensen is a staff writer at NMP.

Link copied

Published

Nov 03, 2022

Analysis and Data

Half Of All Loan Applicants Denied Since 2022 Rate Hikes

Bankrate survey finds 50% of Americans who’ve applied for a loan or financial product since March 2022 have been denied.

Half of Americans who’ve applied for a loan or financial product have been denied since the Federal Reserve started raising its key benchmark rate in March 2022, and 17% have been denied more than one loan, according to a new Bankrate survey. Credit lines are the main cul...

Analysis and Data

High Mortgage Rates, Payments Make For Slow Spring Market

Redfin report indicates monthly payment at all-time high of $2,894

Borrowers are paying more for their mortgages than ever before, and this spring's homebuying market is anything but normal. The median monthly housing payment hit an all-time high of $2,894 during the four weeks ending May 5, a new report from Redfin revealed. That’s 14% ...