NewRez Is Restructuring It’s Retail Division By Eliminating Legacy Senior Managers From Caliber Home Loans.
NewRez is restructuring its distributed retail mortgage business. as a result, this has resulted in cuts to regional and divisional managers. The restructuring also includes reduced compensation for loan officers.
The company fired any nonproducing regional and divisional managers last week as part of the restructuring.
NewRez says that the goal is to “flatten” the organization.
Rumor has it that NewRez engaged in acquisition talks with at least one large independent mortgage bank. The talks involve NewRez selling its retail division made up of the recently acquired Caliber Home Loans.
NewRez said the restructuring will position LOs to generate their own business while also executing on in-house servicing leads.
NewRez is among the industry’s largest holders of mortgage servicing rights with a portfolio of $452 billion in unpaid balances as of January.
Employees say the company made significant changes to loan officer compensation agreements. They say many LOs are planning to depart to go work for other lenders.
The company said it hoped to retain LOs and would continue to hire in the distributed retail channel.
NewRez, itself owned by real estate investment trust Rithm Capital,
NewRez acquired Caliber in 2021. The deal that was valued at nearly $1.7 billion. Rithm and NewRez were attracted to Caliber’s large servicing portfolio.
NewRez had transferred more than 200,000 Caliber Home Loans loans into it’s technology platform as of June 2023. As a result, NewRez doesn’t need the former Caliber Home Loans executives and managers. So, they fired them.
Executives at Rithm Capital have also floated the possibility of spinning out a mortgage division. However, it is uncertain if they will or will not in the near future.