OCTOBER 19, 2024 — 1,900 EMPLOYEES TARGETED
Hicksville, New York-based New York Community Bancorp, the bank holding company for Flagstar Bank, has announced that it is executing a cost containment initiative that will result in an 8% reduction in its workforce. The reduction will impact approximately 700 jobs.
NYCB plans to adopt the Flagstar name on October 25, 2024, and expects that the sale of its residential mortgage servicing unit will impact an additional 1,200 employees when the transaction is completed.
CEO Joseph Otting noted, “We want to express our appreciation for our employees' contributions. Their hard work and dedication have been greatly appreciated, and we approached this decision with empathy and compassion for everyone affected.
"As part of our commitment to a profitable future, we launched a transformation strategy earlier this year to drive change throughout the organization. This includes strengthening our management and Board, redefining our operational plan for improved efficiency, and enhancing our credit oversight and risk framework.
"While these strategic actions involve difficult decisions, including impacts on jobs, we believe they are essential for strengthening our financial foundation and building a more agile, competitive company. This will enable us to focus on strategic investments in other areas and better serve our clients and shareholders, ensuring long-term sustainability and profitability.
"We have made significant progress this year and will continue to pursue opportunities to optimize our operations and enhance efficiency, paving the way for a more resilient and successful future."
JANUARY 29, 2023 — RETAIL MORTAGE DIVISION CLOSURE
Flagstar Bank has closed its retail mortgage operation and laid off hundreds of staffers, including senior management, without warning.
MAY 2, 2022 — Original post…
Troy, Michigan-based Flagstar Bank, a subsidiary of Flagstar Bancorp and a national residential mortgage originator and operator of a full-service Midwest community bank, has announced that it will be following other domestic mortgage firms and reducing its headcount.
The reduction in force has impacted 420 employees involved with mortgage lending.
According to Lee Smith, Executive Vice President and President of Mortgage at Flagstar Bank, "Mortgage originators today are facing unprecedented increases in interest rates and a significantly smaller mortgage market than what we experienced in 2020 and 2021. To ensure we’re positioned to continue to successfully navigate the market, between layoffs and natural attrition, Flagstar has reduced its mortgage staff by 420, including 358 direct layoffs and 62 unfilled positions, or 20% since year-end 2021.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
