Carrington Cuts Staff From Wholesale

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.