Stearns Lending will lay off 348 employees following the choice by Assured Fee earlier this month to discontinue operations of its third-party wholesale channel. A Employee Adjustment and Retraining Notification (WARN), submitted to the Texas Workforce Fee specifies that the layoff date might be on March 13.
HousingWire despatched a message searching for remark to Assured Fee, which was not returned.
Stearns is headquartered in Lewisville, Texas and the state requires that underneath sure circumstances corporations present discover 60 days prematurely of plant closures or mass layoffs.
Assured Fee acquired Stearns Holding in January 2021 from the monetary big Blackstone Group, for an undisclosed sum, however introduced after one yr that it’s closing the wholesale channel.
The final day for brokers to shut a transaction is Feb. 28.
In a letter to brokers about shutting down the Stearns wholesale channel, Victor Ciardelli, Assured Fee CEO, wrote that the corporate can have a laser concentrate on leveraging its “industry-leading buy platform augmented by one of the best mortgage officers within the enterprise.”
Based in 2000, Assured Fee sought to spice up retail mortgage originations, scale its JV platform, and develop new multichannel capabilities by buying Stearns.
After the deal, HousingWire reported that Stearns’ retail operations was folded into Assured Fee. Wholesale, JV and partnership companies remained as stand-alone segments led by Stearns’ CEO David Schneider.
Stearns, based in 1989, had a large partnership enterprise, led by Steve Stein, a extra restricted retail operation, and a wholesale channel that was the most important within the {industry} as not too long ago as 2013, however has misplaced market share to UWM.
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