Another round of layoffs hit hundreds of Newrez employees in Colorado, the second so far this year in the state. It follows the the lender’s recent acquisition of Computershare Mortgage Services and its affiliate Specialized Loan Servicing (SLS).
Newrez, owned by asset manager Rithm Capital, is imposing a workforce reduction of 317 employees at its Greenwood Village, Colorado, facility, a former SLS location. The company already informed affected employees that their expected separation dates will begin Aug. 2.
A spokesperson for Newrez declined to comment.
According to a Worker Adjustment and Retraining Notification Act (WARN) notice sent to the state authority, jobs cut include professionals in activities related to bankruptcy, customer care, default, foreclosure and valuations, among others. Layoffs across the company affect different positions, such as analysts, managers and vice presidents.
Newrez, a top-five U.S. mortgage lender, originated $10.8 billion in mortgages in first-quarter 2024, up 55.2% year over year, according to Inside Mortgage Finance (IMF) estimates. The company owned $537 billion in unpaid principal balance (UPB) of servicing at the end of March.
In October 2023, New York-based Rithm, which has diversified as an alternative asset manager, announced the acquisition of Computershare and SLS. This brought $149 billion in UPB to the Newrez servicing portfolio, including $104 billion in third-party and other servicing rights.
In February 2024, the company restructured Newrez’s distributed retail mortgage business, resulting in cuts to regional and divisional managers along with reductions in loan officer compensation.
Another round of layoffs related to the Computershare and SLS acquisition occurred in May. The company said it would cut 123 employees in Florida and Colorado effective July 1.
Rithm announced a $261.6 million in GAAP net income from January to March, compared to a $87.5 million loss in the prior quarter, per Securities and Exchange Commission (SEC) filings. This resulted, among other things, from Newrez’s positive performance in the servicing and origination segments.
