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| With earnings expected to be stung by loan repurchases, American Home Mortgage Investment Corp. recently laid off hundreds of employees for more efficient operations.
The real estate investment trust reduced its staff by about 200 employees nationally during the second quarter, company spokeswoman Mary Feder told MortgageDaily.com today. The layoffs were the result of “normal course of business, making sure all departments run efficiently and resizing them and staff accordingly,” she said. The job cuts applied to loan processing and back office employees, Feder said, noting sales jobs were unaffected. Currently, the Melville-based lender has about 7,800 employees, she said. Despite record first quarter originations — a reported $16.7 billion, the second three months of the year held substantial charges related to repurchases of discontinued products that may result in the company reporting a loss for the period and will lead it to withdraw its previous earnings guidance for 2007. The expenses were primarily caused by the three-month “timely payment” warranty American Home granted to purchasers of stated-income loans with high loan-to-value ratios, according to a June 28 announcement. “As we put the impact from the discontinued products behind us, the positive contributions from our portfolio, mortgage origination franchise and loan servicing business will again drive our results,” American Home Chief Executive Michael Strauss said in the announcement. “Altogether, the second quarter will be a period of ‘clean-up’ as the impact from the discontinued products continues to wind down.” |
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