BREAKING: E-LOAN lays off 500: Streamlining Ops to Prime Only

We have received word from multiple sources that E-LOAN has laid off some 500 employees this afternoon. Per one anonymous source who wrote in around 2:30 P.M. EST today:

Major layoffs at E-Loan in about 30 minutes. They will keep just a few people ...

Another source wrote in at 3:00 P.M. that the layoffs would affect 500 employees. Per the informant:

Eloan is laying off 500 today.

Though the Implode-O-Meter was unable to track down official confirmation of the above tips, we have been able to confirm verbally from an unofficial source at E-LOAN that a meeting did take place around 3:00 P.M. According to our tipster, at this time approximately 800 employees were divided into two groups, one of 500 and another of 300. The group of 500 was informed that they were being laid off.

Further, our unofficial source indicated that the consolidation is part of E-LOAN's plan to streamline into prime lending only. Auto lending operations are expected to be eliminated, as well.

Finally, we have received an unconfirmed tip that E-LOAN may be eliminating their wholesale HELOC department.

If anyone can confirm or refute these tips, please let us know know by sending an email to ml-feedback@ml-implode.com.

E-LOAN is owned by Banco Popular. Per a telephone recording that plays while on hold with E-LOAN, E-LOAN has "done over 32 billion dollars since inception."

If you would like to discuss these layoffs with other mortgage professionals and readers of the Implode-O-Meter, please do so here at the forum! If you are not already a member of the forum, registration is free and easy.