More mortgage lenders lay off staff as rates rise, applications slow

Movement Mortgage let go 170 staffers last month, following mass layoffs at competitor Better.com

National /
Apr.April 08, 2022 10:30 AM

Movement Mortgage CEO Casey Crawford (Movement Mortgage, iStock)

Rising mortgage rates are putting pressure on lenders as applications decline.

Movement Mortgage is the latest to face struggles, laying off around 170 employees, HousingWire reported this week. Employees in the processing, underwriting and closing departments were most affected by the cuts, according to the report.

Co-founded in 2008 by former NFL player Casey Crawford, the company’s CEO, Movement Mortgage has more than 775 locations across the U.S. and employs upwards of 4,500 people, according to HousingWire. It has not commented on the layoff report.

The South Carolina-based firm is far from the only mortgage lender making cuts as mortgage rates climb to their highest level since the start of the pandemic. Interactive Mortgage and Freedom Mortgage also recently reduced staff, according to HousingWire.

Better.com, which laid off thousands of employees last month, has resorted to floating voluntary separation plans, to workers starting this week. Employees who accept could be entitled to as much as 60 days of severance and health insurance.

The cooling mortgage market is the likely culprit. Mortgage rates are surging, approaching levels not seen in years. Last week, the 30-year fixed mortgage rate increased for the fourth consecutive week, hitting 4.90 percent, according to the Mortgage Bankers Association.

As a result, demand for mortgage originations is declining. Applications last week dropped 6.3 percent from the previous week, reaching its lowest volume since the spring of 2019.

Movement Mortgage originated $33.1 billion in 2021, a jump of 10.7 percent over 2020, but activity appeared to plateau towards the end of the year, with originations falling 0.7 percent from the third quarter to the fourth quarter.

[HousingWire] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Silverback's Josh Schuster and Hopson's Chu Mang Yee with rendering of the project at 131-141 East 47th Street (LinkedIn, Getty, Ismael Leyva Architects)
    Schuster out as Hopson borrows $156M for Midtown tower
    Schuster out as Hopson borrows $156M for Midtown tower
    Mayor of New York City Eric Adams (iStock/Adams via Paul Dilakian)
    Mayor proposes restoring unstaffed voucher discrimination unit
    Mayor proposes restoring unstaffed voucher discrimination unit
    Neil Patrick Harris and David Burtka in front of 2036 Fifth Avenue (Getty Images, Google Maps)
    Neil Patrick Harris sells Harlem brownstone in neighborhood record
    Neil Patrick Harris sells Harlem brownstone in neighborhood record
    Darien First Selectman Monica McNally and Great Island in Darien, Connecticut (Darien Republicans, Google Maps)
    Fairfield County town nears private island purchase for over $100M
    Fairfield County town nears private island purchase for over $100M
    From left: Oaktree Capital Management co-chairman Howard Mark; Helmut Lang; Hess CEO John Hess; and 8 Tyson Lane in East Hampton, Long Island (Getty Images, Oaktree Capital Management, Google Maps, Hess)
    Helmut Lang finally sells East Hampton estate
    Helmut Lang finally sells East Hampton estate
    A photo illustration of 6 South Oxford Street in Fort Greene (Compass)
    Townhouse set to smash Fort Greene price record
    Townhouse set to smash Fort Greene price record
    Mayor Eric Adams and Extell's Gary Barnett (Photos by Paul Dilakian)
    Real estate’s titans talk building, selling, and reinventing the city
    Real estate’s titans talk building, selling, and reinventing the city
    Ryan Serhant and Bess Freedman (iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Ryan Serhant fires back at Bess Freedman, calls legacy brokerages “scared”
    Ryan Serhant fires back at Bess Freedman, calls legacy brokerages “scared”
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...