AM I NEXT? NO LOVE AT DOMA TITLE (12/07/22)

DECEMBER 7, 2022 —40% REDUCTION IN THE DOMA WORKFORCE

The third round of layoffs will see a 40% reduction in force. According to CEO Max Simkoff…

“This reduction in workforce, along with corresponding long-term facility-related cost savings, are aligned with Doma’s accelerated profitability objective.”

“We’ll be leaning into our core data science-led differentiator of instant title and seeking ways we can expand its use through new channels and partnerships. Additionally, we’ll be investing more in our underwriting offerings and continuing to deliver value to independent title agents.”

AUGUST 31, 2022 — Original post…

San Francisco, California-based Doma Title, a technology company automating digital title insurance, escrow, and closing operations with predictive analytics and a future-based risk insurance model, has announced an initiative to re-focus the company's operations to meet the ongoing challenges of a difficult mortgage marketplace. The company plans to put more emphasis on purchase mortgages as rising interest rates are severely impacting the refinancing of mortgages.

According to a company spokesman, the company is laying off another 13 percent of its workforce, or 250 employees. Doma’s stated goal is to completely reimagine the residential real estate closing process using its machine learning platform, Doma Intelligence, and other technology it has developed to automate the title and escrow processes."

This brings the total 2022 layoffs to 561 employees, which is expected to generate annual cost savings of $70 million a year.

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. We see good people being laid off through no fault of their own. 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?

AM I NEXT? NO LOVE AT LOANDEPOT

Lake Forest, California-based LoanDepot, a nonbank holding company selling mortgage and non-mortgage lending products, has announced a major initiative named “Vision 2025” to save between $375 million and $400 million annualized, including headcount reductions, process optimizations, real estate consolidation and reduction in marketing and third-party spending.

The reduction in force to better align personnel with market demand will eliminate approximately 4,800 employees by the end of 2022.

According to president and CEO, Frank Martell, “In 2020 and 2021, like other mortgage companies, we scaled our organization to meet the demands of unprecedented mortgage volumes, especially refinancing transactions. After two years of record-breaking volumes, the market has contracted sharply and abruptly in 2022. We are taking decisive action to meet this challenge head-on.

"We anticipate continued challenging market conditions, with mortgage originations projected to decline by roughly half in 2022 from 2021, including an accelerated decline in the second half of 2022, followed by a further decline in 202.

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?

AM I NEXT? NO LOVE AT FIRST GUARANTY MORTGAGE

Plano, Texas-based First Guaranty Mortgage, a full-service residential mortgage operation that originates, purchases, sells, and services mortgage and home improvement loans, has executed a dramatic reduction in force. The company is essentially closed for new business as they work out a solution to the current crisis.

The layoffs impacted a majority of the workforce and 428 of its 565 employees in its Plano, Texas office were pink-slipped.

According to a company statement, "The layoffs were caused by significant operating losses and cash flow challenges due to unforeseen historical adverse market conditions for the mortgage lending industry, including unanticipated market volatility. Recent efforts to obtain funding that could have prevented the layoff have been unsuccessful.

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?