Industry News

HSBC closes Decision One, lays off 750

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HSBC Finance Corp. said it will lay off 750 workers as it closes Decision One Mortgage, the company's subprime wholesale lending channel, and concentrate on making loans through the company's retail branches. The Prospect Heights, Ill.-based lender said most of the affected Decision One workers are located in Fort Mill, S.C.; Phoenix, Ariz.; and Charlotte, N.C. Decision One accounted for "a small part" of parent company HSBC Holdings' U.S. business, the company said in a press release. HSBC Finance will continue to provide servicing and support as it winds down Decision One's $349 million in warehoused loans. "In recent months, unprecedented developments in the mortgage industry have resulted in a significant reduction in secondary market demand for nonprime loans," the company said in a separate Securities and Exchange Commission filing. "Management has concluded that recovery of a secondary market for nonprime loans products is uncertain and at a minimum, cannot be expected to stabil...