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| Declining home equity volume will lead to hundreds of job cuts at Chase Home Finance, though job additions will offset some of the reductions.
Chase will phase out a home equity loan processing center in Lexington, Ky., and layoff 430 workers by mid-summer 2008, spokesman Tom Kelly told MortgageDaily.com in e-mail statements. Chase’s decision to transfer the work of the Lexington center to sites that have more scale and capacity was based on declining home equity originations and overall efforts to improve efficiency, Kelly said. Home equity volume at $11.2 billion for the third quarter — off 23 percent on a linked quarter basis and 16 percent annually, parent JPMorgan Chase & Co. reported on Oct. 17, noting it had halted subprime home equity originations and tightened underwriting on prime home equity lending. Most of the work will be consolidated into Monroe, La., and Columbus, Ohio, but some will be offshored to Manila in the Philippines. The layoffs will begin early next year. So far, 80 of the affected employees have received official layoff notices, according to the spokesman. However, Kelly noted net job reductions will be around 100, since Chase plans to add about 215 mortgage jobs in Monroe, another 55 in Columbus and 45 in Manila. |
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Chase Home Finance profile
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