Sources Say New American Funding Eliminated Loan Officers, Processors And Underwriters In Another Lay Off Sweep

Former employees say New American Funding has laid off hundreds of employees on Tuesday.

New American Funding eliminated several hundred positions. The company laid off loan officers and underwriters. In addition the company also laid off processors and training specialists. The firm had 4,800 employees in July 2021. 

New American Funding failed to file No Worker Adjustment and Retraining Notification (WARN) notices to California’s EDD. 

The California lender offers a variety of conventional and government loans. In addition to adjustable-rate and non-qualified mortgages. The company is also licensed in 49 states.

The lender has 159 active branches nationwide. The company also originated $31.8 billion in mortgages in 2021.

Sources also say New American Funding originated $9.1 billion in the first six months of 2022. This is down 42.7% from the first six months of 2021.

Employees say the company had performed multiple rounds of layoffs in the early part of 2022. 

The company laid off 500 employees in February. This was ahead of the Fed’s first rate hike in March,

An employee told HousingWire:

We were paid out on every file we did last year. Earlier this year, around March or April, they cut that back saying we couldn’t get paid out on anything unless we closed over 11 loans a month. Last year, when it was busier we were able to close 20 to 30 no problem. But with the economy as it is, it was a struggle to hit 10.” 

Since the mortgage business has slowed down, we’re doing a reduction in force is what they [human resources] told me. 

Privately held New American Funding joins a plethora of companies making sizable cuts to its workforce this year.

Also, This Article Originally Appeared On Lender Meltdown.

Check out more stories on MFI-Miami.