based in new jersey Homebridge Financial Services will lay off 139 employees in June, three months after the acquisition of its retail division by CMG Mortgage, Inc.,
A Worker Adjustment and Retraining Notification (WARN) has been filed with New Jersey Department of Labor and Workforce Development Shows that job cuts will affect mortgage loan officers, final “documents” associates, desktop support professionals and business solutions architects, among others.
“As a result of the sale of a portion of its business, Hobridge Financial will cease all of its retail operations,” Philip Schild, the company’s general counsel, wrote in the document.
A spokesperson for CMG and Hombres did not immediately respond to a request for comment.
The layoffs would take place on June 26, but an additional date of August 31 was included in the WARN notice. As per the document, the employees will be paid their salary or wages till their termination date. Severance will also be provided as per legal requirements.
California-based CMG, which claims it was worth more than $19 billion in 2022, announced on March 6 that it struck a deal to acquire the retail assets of Hombres to grow its presence in the channel.
Ultimately, Hobridge retained its wholesale divisions: Hobridge Wholesale and REMN Wholesale. In addition, the company’s CEO, Peter Norden, will serve as executive advisor to CMG’s retail division to ensure a successful transition.
Homebridge says it has more than 1,600 associates and more than 180 retail branches across the United States with an origination volume of $12 billion by 2022.
Per inside mortgage finance Data, the company was the 39th largest US mortgage lender by volume last year. (CMG was the 27th largest.)
In 2022, Mike Cagney’s Chitra Technologies entered into an agreement to acquire Homebridge. However, the deal fell apart just 10 months after it was announced because regulatory approval did not come quickly and demand for the new technologies was too strong to wait.
