A financial services firm is unloading mortgage assets and eliminating mortgage jobs in North Texas. The company is affiliated with Nationstar Mortgage LLC — which, itself, is laying off North Texas employees.
Springleaf Finance Inc. has notified the state of Texas about upcoming layoffs it has planned for the Dallas area.
The staffing reduction comes as the Evansville, Ind.-based company has been selling mortgage assets. In March, Springleaf disclosed the planned sale of around $1.0 billion in legacy mortgage receivables.
A recent filing with the Securities and Exchange Commission indicated Springleaf had reached a whole loan sale agreement with an unnamed “major financial institution” to sell $1.7 billion in performing and non-performing mortgages. That transaction is expected to settle on Aug. 29.
In addition, Springleaf reached a deal earlier this month with Nationstar to sell mortgage servicing rights on $5 billion in home loans. The MSR sale is scheduled to close by the end of this month.
Fortress Investment Group LLC holds a big stake in both Springleaf and Nationstar.
Springleaf previously operated as American General Financial Services, a subsidiary of American International Group Inc. In 2010, Fortress acquired an 80 percent stake in the company.
Springleaf said it stopped making real estate loans in January 2012.
The mortgage layoffs impact 114 employees in Irving, Texas, according to a Worker Adjustment and Retraining Notification filed with the Texas Workforce Commission.
Springleaf said in the WARN filing that the layoffs are the result of closing down its mortgage servicing operations at the Irving facility. The closing date is scheduled for Sept. 30.
Nationstar, itself, confirmed this week that it will be laying off 160 servicing employees by mid-October in Colorado, Nebraska and Texas.