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New American Funding cuts 160 jobs in consumer direct unit
The lender said the layoffs were tied to elevated mortgage rates that have suppressed refinance demand.
New American Funding confirmed it cut 160 jobs in its consumer direct division, citing current mortgage market conditions that have continued to pressure refinance volume, HousingWire reported. The company said it is aligning operations to reflect those market realities.
The California-based lender, founded in 2003, said the decision was part of navigating the “headwinds” facing the mortgage market. It added that the changes were not made lightly and expressed gratitude to the affected team members.
NAF has roughly 330 branches and 2,646 loan officers, and it has originated $12.5 billion in mortgages year to date, according to data cited by HousingWire. The report also notes that the 30-year fixed mortgage rate has been stuck in the 6% to 7% range for most of the past few years.
HousingWire said consumer direct operations typically perform better when interest rates are falling and refinance demand is strong, which has contributed to cost and staffing adjustments for lenders with large refi footprints. The company previously reported mortgage volume growth last year, with $21.8 billion produced in 2023 versus $19.6 billion in 2022, while it continues technology investments aimed at efficiency.