Home Mortgage Company Announces Major Cuts

A major U.S. mortgage lender has laid off 20 percent of its total work force nationwide, with some cuts coming from its office in California.
LendingTree, the online home loan lending and real estate services exchange, which has 2,200 employees, cites the slump in the mortgage industry.

The layoffs occurred Friday. In addition to Irvine, Calif., the cuts also came from the company’s offices in Charlotte, N.C., and Jacksonville, Fla.

“The mortgage market has changed dramatically over the last quarter,” says company spokeswoman Rebecca Anderson.

“This decision was a proactive move to adapt to the current housing market.”

Anderson declines to break down how many employees will lose their jobs in the California mortgage market or the other two locales.

The layoffs come in the aftermath of Tom Reddin’s departure as CEO of the business. Reddin surprised even corporate superiors last month as he said he would retire effective May 7 to spend more time with his family.

New York-based IAC/InterActiveCorp, which owns LendingTree, began a search for his replacement. In the interim, LendingTree founder and IAC President Doug Lebda said in an email to employees last month:

“I’ll personally get very engaged in your business in the coming days and weeks, including spending several days a week in Charlotte.”

At the time, Reddin said the slowing U.S. housing market played no role in his decision. But he acknowledged the company’s real estate and home loan lending businesses are going having problems as the market contracts.

Still, he pointed out, LendingTree increased its revenue 17 percent and boosted market share 10 percent last year while remaining profitable.

Lebda’s message to employees acknowledged Reddin is leaving at a tough time in the home mortgage and real estate industries.

“That puts a lot of pressure on our business and our people,” he said. “Leadership change makes the macro-environment changes that much more difficult.”

SOURCE: L.A. Business Journal