Industry NewsMortgage

E-LOAN shedding more than 500 workers

Online lender to focus on agency-eligible loans

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Online lender E-LOAN is in the process of laying off 513 employees, or two-thirds of the company's workforce, as parent company Banco Popular North America reports mounting losses related to subprime mortgage loans. The layoffs are part of a move to concentrate on loans eligible for repurchase to Fannie Mae and Freddie Mac, according to a U.S. Securities and Exchange Commission filing by BPNA's parent company, Popular Inc. The company reported that the layoffs are expected by year-end and will reduce expenses at E-LOAN by $79 million next year. Puerto Rico-based Popular said third-quarter net income fell 56 percent from a year ago to $36 million, largely because of a $44.7 million net loss in U.S. operations including E-LOAN. The bank said U.S. losses for the first nine months of 2007 totaled $107.7 million, compared with a $20.3 million profit for the same period a year ago. The layoffs were approved Nov. 5 by Popular's board of directors as part of a restructuring plan for E-LOAN. E...