Homebridge Financial Services has told New Jersey state officials that it plans to lay off 139 employees starting in mid-June.
The announcement comes less than a month after California-based CMG Mortgage Inc. acquired Homebridge’s retail division for an undisclosed amount.
According to a Worker Adjustment and Retraining Notification (WARN) Act notice filed March 24 with the New Jersey Department of Labor and Workforce Development, Homebridge said the effective date of the layoffs is June 26. It also listed Aug. 31 as an additional effective date.
Under the federal WARN Act, a company planning a mass layoff must provide the affected employees with at least 60-days advance notice. According to its LinkedIn page, the company has more than 1,900 employiees.
Employees affected by the layoffs will be paid wages and salaries up to their termination date, and will receive severance pay and be eligible to continue their health insurance benefits under COBRA, the notice states.
The cuts will affect a variety of positions, the filing states, including mortgage loan originators, desktop support associates, and final documents associates, among other positions.
Philip Schild, Homebridge’s general counsel, states in the filing that, “As a result of a sale of a portion of its business, Homebridge Financial will terminate all of its retail operations.”
In the deal with CMG announced in early March, Homebridge said it would retain its two wholesale divisions, but CMG would acquire Homebridge’s 180 branches across more than 30 states.
At the time, Homebridge CEO Peter Norden issued a statement that made it sound as though the staff of his retail division would be retained by CMG.
"Giving our retail sales team the opportunity to join forces with Chris George and his incredible team will position everyone for success in an ever-changing market,” he said.
Officials with Homebridge and CMG did not respond to requests for comment.
CMG has said it originated $19 billion in mortgage loans overall in 2022, while Homebridge said it originated $12 billion in loans across its divisions.
