Industry News

Accredited Home Lenders to exit retail mortgage lending

More than 1,000 face layoffs

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Accredited Home Lenders is closing down its retail lending business and laying off about 1,150 workers companywide in an attempt to keep the company's doors open. The San Diego-based subprime lender said it will close 60 retail branch locations and five support locations by Sept. 5, laying off 480 employees, and five of the company's 10 wholesale divisions, eliminating 490 positions. About 180 employees at the company's San Diego headquarters will also be laid off, leaving Accredited Home Lenders with a total work force of 1,000, down from 2,600 at the end of June. Accredited said its Canadian operations and its servicing platform for its $8.4 billion loan portfolio are not affected. "Even though our servicing ratings have been downgraded over liquidity concerns in recent months, we intend to maintain the quality of our servicing operations and expect to continue providing the highest level of loan servicing for our bond investors," James Konrath, Accredited's chairman...