Nonbank mortgage lender and servicer Pennymac Financial Services issued pink slips to more than 80 employees in November as it faced tough headwinds in 2023.
A total of 84 staff were affected at five offices in Pasadena, Roseville, Agoura Hills, Westlake Village and Moorpark, California, according to a Worker Adjustment and Retraining Notifications (WARN) alert submitted to the California’s Employment Development Department (EDD) in late December.
“To navigate the more challenging market conditions experienced in 2023 and given the cyclical nature of the industry, Pennymac made the difficult, but necessary decision to reduce its workforce,” a spokesperson from Pennymac said in an e-mailed response.
“This decision was made carefully to ensure the company is best positioned for the long term, while continuing to provide our customers with the highest level of service.”
Expected separation dates for the affected employees were either December or January.
The WARN Notice shows that the workforce reduction includes 10 loan officers, senior app developers and vice presidents of app development, talent sourcing and sales manager.
Bumping rights do not exist for these positions and employees are not represented by a union, wrote Kim Lappin, senior vice president of employee relations, in a letter to the EDD filed Nov. 15 and reviewed by HousingWire.
All affected employees were offered severance, and those eligible for rehire have access to a recruiting channel that was set up for displaced employees, Pennymac said.
The California-based lender delivered a $92.87 million net income in Q3, up from the second quarter’s $58.2 million but down from $135 million in Q3 2022. As with many lenders, Pennymac’s servicing earnings propped up its latest third-quarter performance.
In December, Pennymac raised $750 million in unsecured debt with qualified institutional investors and will use the proceeds of the offering to repay a portion of the company’s secured debt due in 2025.
Pennymac ranked as the second-largest mortgage lender, trailing United Wholesale Mortgage (UWM), in the first nine months of 2023, according to data from Inside Mortgage Finance.
Pennymac had originated more than $72.3 billion in production volume during that period, a 16% decline from the same period in 2022.
