HomeStreet in Seattle continues to downsize its mortgage operations.
The $6.6 billion-asset company said in a press release Monday that it will fire 60 employees in the segment. HomeStreet will also close or reduce space in nine lending centers. Two regional managers were among the positions cut.
The company had already cut 73 jobs in its mortgage business in the second quarter. Overall, headcount in the mortgage segment will be reduced by 9% from where it stood on March 31. About a quarter of the total reductions came from voluntary attrition.
The company said it expects to save $13.2 million a year from the cuts.
HomeStreet President and CEO Mark Mason said in the release that a “shortage of new and resale housing” has caused a decline in origination volume for single-family mortgages. Volume for 2017 is about 20% short of HomeStreet’s projections, he added.
“We do not see a near-term market catalyst that would result in a meaningful improvement in production volumes, therefore we have taken steps to reduce our mortgage origination capacity and reduce our cost structure to promote the long-term health and profitability of this business segment,” Mason said.
HomeStreet said it expects to incur about $3.5 million in restructuring charges during the third quarter.