Ditech to Lay Off 437 Employees Following Office Closure
An American lender of mortgage loans and refinancing products, Ditech Financial LLC, has announced that it will be closing its Irving, Texas office by the end of this year.
The company has filed a notice of layoffs with the Texas Workforce Commission as required under the Worker Adjustment and Retraining Notification Act (WARN Act). The document says that 437 employees working at the location will be laid off following the office closure.
The news of the office closure and layoffs comes as the parent company of Ditech, Walter Investment Management Corp., deals with financial difficulties.
An internal memo by the CEO of Walter Investment Management, Anthony Renzi, said, “Despite the progress we are making on our 2017 operating plan, our financial results have been disappointing and the need to accelerate our consolidation is clear.”
Renzi’s memo further said, “Leading up to the closing of the Irving office, we will continue to maintain a strong leadership presence in Irving to ensure a smooth transition.”
Walter Investment Management’s management team plans to focus on Ditech’s operations at three of its core locations, where it generates most of its business. These include offices in Fort Washington, Pennsylvania; Jacksonville, Florida; Tempe, Arizona; and Houston, Texas.
Elizabeth Monahan, the chief human resources officer of Walter Investment Management, confirmed this in a statement: “Due to current circumstances, management has determined that it is in the best interests of the company to consolidate our mortgage servicing operations in company locations other than Irving.”
Renzi has warned that additional offices may close later, causing more layoffs. According to his memo, the company is currently evaluating its eight other locations for possible closures.
The company has been downsizing its operations for the last two years, and has undertaken various restructuring efforts. During this period, Ditech exited the brick-and-mortar retail sector and relaunched its wholesale lending operations.
Walter Investment Management has cut its workforce by nearly 25% since the end of 2015. The current headcount of the corporation’s workforce stands at about 4,500.
“Ditech to close Irving mortgage office, lay off 437 workers by end of this year,” The Dallas Morning News, July 14, 2017.
“Ditech to close Dallas-area office as retrenchment plan takes shape,” National Mortgage News, July 14, 2017.