Country Club Mortgage lays off over 100 employees

Plus: First Republic ‘fraudulently’ recruited brokers before collapse, plaintiffs say

January 22, 2024

👋 Welcome to Monday. Today’s newsletter is 850 words, a 3.5-minute read.

Disclaimer: Average mortgage rates as of Jan 19, 2024. © MND's Daily Rate Index.

1. Country Club Mortgage lays off over 100 employees

Country Club Mortgage, a California-based home lender, is laying off over 100 employees due to “facility closures”, as per documents sent to state regulators.

Sherry Carson, the company's human resources generalist, communicated the layoffs in a letter stating, “This letter serves to give you an amended 60-day notice of permanent layoffs and facility closures effective Feb. 6, 2024.”

The layoffs include high-level roles such as the president, CEO, finance manager, and credit risk officer. They affect various locations, including Visalia, Fresno, Hanford, Exeter, and Selma, targeting roles like underwriters, processors, and over 50 mortgage loan officers.

It’s not clear if the company is shuttering or transitioning to a broker or correspondent business.

2. First Republic ‘fraudulently’ recruited brokers before collapse, plaintiffs say

Two former First Republic brokers are suing the Federal Deposit Insurance Corp., the receiver of First Republic, because they were “fraudulently induced” to accept jobs at the bank “mere weeks” before its March 2023 collapse.

Alexander Kadish and Nicholas Davey filed a complaint in California last week seeking compensation for damages suffered “as a result of the Bank’s fraudulent misrepresentations and omissions,” court documents show.

  • Prior to joining First Republic, Kadish and Davey led a team that generated $9.2 million in annual revenue at Morgan Stanley, according to AdvisorHub.

Although the FDIC is the named defendant, the plaintiffs plan to identify specific individuals later, according to court documents.

“Among other things, the Bank understated and concealed the magnitude of the risks facing its business model that would result from any decision by the Federal Reserve System raising the federal funds rate, thereby undermining the value of the Bank’s loan and securities portfolios and liquidity.”

🐝 Close 3 additional loans per month…

Your problem isn’t new leads, it’s your leaky funnel. Aidium solves that…

Your Data + Our Automations + Higher Adoption = Improved Conversion Rates

Convert more deals from your existing lead volume with Aidium—a comprehensive solution designed to nurture the borrower through their journey. Data and reporting dashboards to automated marketing templates to seamless referral tracking, text communication, and improved adoption with detailed team performance views.

Let your CRM work for you, not hold you back.

Experience the power of our ready-to-go content marketing templates built to free your time and originate more loans. Tedious tasks that once seemed never-ending are now gone with Aidium’s solutions.

3. Catch up quick

💻 loanDepot begins bringing more systems back online, but still hobbled by breach. (loanDepot)

🚧 In Beverly Hills, no kitchen remodels or pool grottoes as judge orders building moratorium over lack of affordable housing. (LA Times)

📝 MBA backs 'Tax Relief For American Families And Workers Act Of 2024'. (MBA)

💭 Fannie’s CEO contemplates a future after government conservatorship. (Bloomberg)

⺾ Weird flex but OK: an Australian woman’s yard won the first-ever title of World’s Ugliest Lawn. (The Guardian)

4. Zip codes with the highest foreclosure rates in 2023

Foreclosure filings were reported on 357,062 properties in 2023, according to data provider ATTOM’s newly released 2023 Year-End U.S. Foreclosure Market Report.

That figure represents an increase of 10% from 2022, but a decrease of 28% from 2019 before the pandemic. Below is their list of the top 10 U.S. zip codes with the highest foreclosure rates in 2023.

  1. 60628 – Chicago, IL

  2. 78542 – Edinburg, TX

  3. 60620 – Chicago, IL

  4. 44120 – Cleveland, OH

  5. 29229 – Columbia, SC

  1. 60619 – Chicago, IL

  2. 60411 – Chicago Heights, IL

  3. 32218 – Jacksonville, FL

  4. 34746 – Kissimmee, FL

  5. 89031 – North Las Vegas, NV

5. Blackstone doubles down on the housing market with acquisition of Tricon and its nearly 40k homes

Blackstone is adding to its bet on rental housing with a $3.5 billion deal for Tricon Residential Inc.

Blackstone agreed to pay $11.25 a share for Tricon, the companies said in a statement Friday. Blackstone Real Estate Partners X is teaming up with Blackstone Real Estate Income Trust for the deal.

Tricon primarily provides single-family rental housing and rental development in the United States and Canada. Currently, Tricon Residential owns about 38,000 U.S. rental homes.

6. Judge finds UWM employment contract violated workers' rights

A judge from the National Labor Relations Board (NLRB) found that an employment contract that United Wholesale Mortgage (UWM) made employees sign in the past few years violated workers' rights.

Administrative Law Judge Susannah Merritt agreed with federal prosecutors that large portions of the contract were "overly broad, ambiguous and/or discriminatory." Employees would view many of UWM's terms as unlawfully prohibiting them from discussing workplace conditions, disputes, wages, union efforts and more, the decision said. The judge also found language around arbitration, social media use, and media contact in violation of labor laws.

Matthew Clark, representing a former UWM employee, filed the case. He expressed satisfaction with the decision, emphasizing its potential impact on employment practices. UWM, disagreeing with the ruling, called it politically driven and plans to appeal.

🙏 See you on Wednesday!

Enjoyed this newsletter? Forward it to a friend and have them signup here.

Interested in reaching mortgage professionals like you? Get in touch to advertise.