Homecomings Financial, LLC - Wholesale
Update - 2008-09-08: The Dallas Business Journal reports today that 87 jobs will be cut at Homecomings Financial LLC's Dallas servicing office in the wake of ResCap's announcement to cease the wholesale operations. Referencing a letter to the Texas Workforce Commission, the article states "the loan servicing company says its plant on the 14,000 block of Quorum Drive is closing. Layoffs will begin on Sept. 19 and be completed by Nov. 14."
We were under the impression just wholesale was being shutdown. Looks like this means the whole enchilada. Our call to their media relations office to confirm was not returned. (After we posted this update, spokesperson Jeannine Bruin called us back. The servicing center on Quorum Drive supported Homecomings' wholesale operations. The main servicing center for GMAC Mortgage, Homecomings and Ditech located on Haskell in Dallas remains in operation.)
Original Listing - 2008-09-03: This listing has the latest news and information previously posted under Residential Capital, LLC. ResCap announced today it was shutting down Homecomings Financial. From an internal memo sent to all employees by ResCap Chairman and CEO Tom Marano:
A separate announcement also went out to brokers. All GMAC Mortgage retail offices are being closed, and the Homecomings Wholesale Channel will cease loan originations through brokers. In a more specific follow-up memo, brokers were told:
Bloomberg and MarketWatch are reporting the layoffs amount to nearly 60% of ResCap staff, and all 200 GMAC Mortgage retail offices will be closed. ResCap will realize charges of $90 to $120 million related to the initial 3,000 job cuts, with more projected in the future for the remaining 2,000. See the topic in our Discussion Forum for additional detail and commentary specific to Homecomings Financial.
Update - 2008-08-06: Tips coming in have alerted us that the Bellevue, WA office of Homecomings has now received notice of its shutdown. One tipster said, "mgmt had a conference call yesterday at 4pm and then stayed in the conf room til late - they had a meeting today telling them all."
We called the office and confirmed the announcement. Approximately 80 employees were affected.
Update - 2008-07-29: In an announcement sent to brokers (view pdf), Homecomings said they were discontinuing home equity lending entirely. Loans in the pipeline must be locked by 2008-07-31. This includes both closed-end seconds and home equity lines of credit.
Update - 2008-06-20: Homecomings is hunkering down with branch consolidations and lay offs. From a 2008-06-17 memo sent to employees:
A tipster told us there remain about 80 people in the Bellevue office. "Account managers laid off... is about 8," the source wrote. "There will be more to come in this branch in the next 30 days if it [stays] open at all."
Original Ailing Entry - 2007-10-26: Homecomings Financial is an indirect wholly owned subsidiary of GMAC LLC.
According to a Manager who is being laid off this week, Homecomings is closing all offices this year and will maintain one office in each of North Carolina, Texas, and Washington.
A Mortgage Broker in California received this from their AE:
"Homecomings Financial is going through a company wide restructuring due to the current market conditions. Unfortunately, we had to layoff 3,000 people today, which is 25% of our workforce. Our Newport Beach office will be closing as of December 31st, 2008 and migrating with the Bellevue, Washington office. In addition, in saddens me to say that every AE that has been with the company for less than 12 months has been layed off, which includes me..."
Another reader reports the following, which 'appears' to be an internal memo:
"Effective immediately, Homecomings Financial will be sharing customer information with its affiliate, GMAC Bank, which will evaluate qualified loan transactions for purchase. Before GMAC Bank can consider a loan for approval, Homecomings Financial must first obtain a complete and signed GMAC Bank Opt In Agreement from all borrowers listed on a loan application in order for the application to be reviewed, processed and underwritten by GMAC Bank. Homecomings Financial will return any loan applications that do not have a complete and signed GMAC Bank Opt In Agreement, which permits Homecomings Financial to share personal information with GMAC Bank. Brokers can obtain the GMAC Bank Opt In Agreement on our web site at www.hfwholesale.com."
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.