As part of a move to shed 900 employees, Washington Mutual Inc. is all but eliminating its in-house residential appraisal department.

Layoffs announced Thursday include 350 employees in the home loans group, of which 320 are members of the residential home appraisal team, said Washington Mutual spokeswoman Olivia Riley. Riley said the bank will consolidate appraisal work formerly performed in-house and by hundreds of outside vendors with two national appraisal management companies.

As part of a move to shed 900 employees, Washington Mutual Inc. is all but eliminating its in-house residential appraisal department.

Layoffs announced Thursday include 350 employees in the home loans group, of which 320 are members of the residential home appraisal team, said Washington Mutual spokeswoman Olivia Riley. Riley said the bank will consolidate appraisal work formerly performed in-house and by hundreds of outside vendors with two national appraisal management companies.

Washington Mutual had already outsourced “a large percentage of our appraisal work,” and contracting with just two outside companies instead of hundreds allows the bank to save money by achieving better economy of scale, Riley said.

Jonathan J. Miller, whose appraisal firm has been a longtime Washington Mutual contractor, identified the two companies taking over the bank’s residential appraisals as First American Corp. and Lender’s Service Inc. Riley would not confirm or deny the report, saying Washington Mutual has yet to officially announce the two vendors.

Washington Mutual’s appraisal department “had been one of the few remaining of the national lenders that actually looks at the reports that come in, to assess the collateral for their loans,” Miller wrote on his blog, Soapbox.

Miller questioned whether Washington Mutual will be able to rely on outside companies to produce reliable appraisals. Riley said bank employees will continue to oversee the appraisals, making sure that it meets Washington Mutual’s standards.

The move does not represent a major shift in approach for Washington Mutual, Riley said, but is the continuation of a long-term strategy to increase the company’s efficiency by outsourcing jobs in several departments and eliminating others “to meet current and anticipated market conditions.”

“We had been working with hundreds of vendors so you can imagine, it’s a pretty big percentage (of appraisals) that were already outsourced,” Riley said.

Washington Mutual cut 1,400 jobs in May, just three months after announcing the closure of 10 of its 26 home-loan processing centers, eliminating 2,500 jobs.

Riley said Washington Mutual is hoping the two vendors who will handle residential appraisals will hire many of the bank appraisers who are being laid off. She said the vendors may also hire other firms to do a portion of the bank’s appraisals.

***

Send tips or a Letter to the Editor to matt@inman.com or call (510) 658-9252, ext. 150.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×