New Residential Investment Corporation Hands Out Hundreds More Top To Bottom Pink Slips In Every Department.
New Residential employees say the company targeted their processing, underwriting, and closing departments in last week’s round of layoffs.
This week’s layoff affects employees in both junior and senior roles. On the bright side, The company is paying two weeks of severance per year of service.
New Residential is the parent company of NewRez and Caliber Home Loans. Management declined to comment about the layoffs.
In February, New Residential sent pink slips to 386 employees, about 3% of the mortgage workforce, less than a year after acquiring Caliber Home Loans, a multichannel lender, in a deal valued at $1.675 billion in April 2021.
The company has launched multiple rounds of layoffs in originations since February. The layoffs affect both Newrez and Caliber teams.
Documents filed with the SEC show that New Residential had 12,293 employees in December 2021. However, the number dropped to 11,324 in March 2022.
The company funded $26.9 billion in mortgages in the first quarter, down from $82.3 million in the previous quarter. New Residential did report $690 million in net income. This is a 267% increase from the previous quarter. The gain was boosted by the company’s servicing portfolio.
To reduce costs, New Residential announced in June that it had decided to internalize the company’s management. The internalization will save approximately $60 million to $65 million.
The company is also changing its name to Rithm Capital. The name change is to reflect the diversification of its businesses. Last year, it closed the acquisition of Caliber Home Loans and Genesis Capital LLC.
New Residential will start trading on the NYSE as “RITM” on or about August 1, 2022.