Posted on: 05th Sep, 2013 03:48 am
Michigan Mutual, the full service mortgage lender, has recently cut down nearly 20% of its workforce. The current rising rate and sluggish refinancing activities have forced the firm to take such an unsavory step. Majority of the lay offs took place in the underwriting and loan-processing divisions.
As the refinance activities have reduced in number due to the rise in mortgage interest rates, a large number of lending institutions have to now opt for layoffs. For Michigan Mutual, this was quite heart-wrenching as they had to take such a step for the first time in 20 years!
All the major lending institutions are now bound to take such a decision because of the end of the refinance boom. Some of these institutions hired large number of employees in order to handle the refinance applications.