MORTGAGES

Coppell-based Mr. Cooper lays off 800
It’s company’s third round of job losses this year
By MITCHELL PARTON
Staff Writer
mitchell.parton@dallasnews.com

After laying off about 700 employees earlier this year, Coppell-based mortgage company Mr. Cooper Group Inc. has announced another round of layoffs, cutting about 800 more jobs.

The job cuts affected the company’s originations business as the company adjusts to a smaller mortgage market, according to reports in Inman News, HousingWire and National Mortgage News.

Many of the job cuts were in Chandler, Ariz., according to posts from affected employees on LinkedIn.

“In the face of market volatility and economic uncertainty, Mr. Cooper Group has taken a disciplined and proactive step to scale back the originations business, including the elimination of approximately 800 positions,” the company said in a statement to the trade publications.

Mr. Cooper did not immediately respond to a request for comment.

Coppell-based Mr. Cooper laid off 420 staff members in the second quarter and 250 in the first quarter, mostly employees who worked in originations, The Dallas Morning News previously reported.

Mr. Cooper’s profits dropped 25% from the second to third quarters, with a $113 million profit in the third quarter.

“We’re obviously watching the deterioration in the leading economic indicators, which point to a growing risk of recession as well as a housing correction which has already begun,” said Christopher Marshall, vice chairman and president of Mr. Cooper, in the company’s third-quarter earnings call Oct. 26. “And the global backdrop looks quite fragile.”

The company’s board also approved an additional share buyback of up to $200 million, announced Oct. 26. The company bought back 1.1 million shares during the third quarter for $50 million.

Mortgage rates have continued to rise over the past few weeks, soaring above an average rate of 7% for a 30-year fixed-rate home loan for the first time in two decades. Rates have more than doubled over the past year.

In the earnings call, Mr. Cooper CEO Jay Bray called the increase in mortgage rates “the most extreme shock the industry has experienced in its history” and said the company will continue to look at further cutting corporate costs.

Mr. Cooper is one of the largest servicers and originators of home loans in the nation. It had about 8,000 U.S. employees as of the second quarter.

Twitter: @mitchellparton