Industry News

Mortgage lenders send 3,050 workers packing

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National City Corp., Countrywide and Lehman Brothers announced more than 3,000 layoffs today and Wednesday, as mounting losses in mortgage lending force companies to cut costs. National City Corp. said today it was laying off 1,300 workers at National City Mortgage as part of "aggressive steps" to respond to changing conditions in the mortgage markets, which could also include writing down the value of loans it's been unable to sell to investors by $30 million. The layoffs include 800 job cuts resulting from reductions in the origination of non-agency eligible loans at National City Mortgage, and expected lower demand for such loans in the future. Those layoffs were initiated in early September, the company said. Another 500 positions are being cut following the merger of the company's National Home Equity unit into National City Mortgage in August, and the suspension of broker-sourced originations of home equity loans. National City said it's also evaluating whether it ...