California-based Summit Funding to cut 72 employees
Mortgage lender based in Sacramento, CA Summit Financing Inc. plans to carry out a series of layoffs at the end of November that will affect 72 employees, according to a document filed with the State Employment Development Department.
“With demand for mortgage services falling to a 22-year low, and the resulting impact of this market condition on our business, we will be laying off many employees,” Sherry Meneley, director of human resources, wrote in a Worker Adjustment. and Recycle Notification (WARN).
The layoff, scheduled for Nov. 23, will affect 36 employees working at the corporate office in Sacramento and 36 remote employees in nine states, such as Alabama and Colorado, reporting virtually to the corporate office.
Summit is cutting, among other things, 11 closing positions, 10 underwriting staff, nine financing staff and eight senior underwriters, according to WARN.
Company CEO Todd Scrima founded the mortgage lender in 1995. The company offers conventional, FHA, VA, USDA, jumbo, and reverse mortgages.
Messages left with Summit executives were not immediately returned.
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Summit has generated $5.2 billion in the past 12 months through 268 active loan officers and 75 branches, according to data from the mortgage technology platform Modex. The company has licenses in 49 states. According to data from Modex, nearly 80% of the company’s production is compliant and 55% is purchases.
The mortgage industry has been facing a wave of layoffs since late 2021. Soaring rates are reducing output for lenders, forcing them to cut costs, mainly staff hired to take advantage of the refinancing boom of 2020 and 2021.
So far in the fourth quarter of 2022, companies such as Ohio Lower and based in Atlanta Angel Oak Home Loans confirmed that they were cutting jobs. And industry experts believe there will be no relief in the coming months.
The Federal Reserve has raised the federal funds rate by 300 basis points so far this year to control soaring inflation, which has prompted a “reset” in the mortgage market. Further hikes of 125 basis points are still expected in 2022, with the fed funds rate capping well above 4%.