Last week IndyMac cut 2,403 jobs or 24 percent of its workforce to cope with deteriorating housing and capital markets. So what does this mean for the successful reverse mortgage subsidiary Financial Freedom? When I asked Financial Freedom if this included any of their staff here is the response I received:
“While Financial Freedom’s parent, Indymac Bank, shed 24% of its workforce yesterday as a result of severe disruption in the secondary mortgage market, less than 5% of Financial Freedom’s permanent workforce was impacted, largely in administrative roles. Despite the current negative environment within the mortgage industry generally, we continue to believe that the reverse mortgage industry has a bright future and strong growth potential. We intend to take advantage of these conditions by continuing to invest in our marketing and operations, and by continuing to grow our sales distribution channels.”
Now I’m not sure what jobs are classified as “administrative roles”, but a few RMD readers have told me that most of their AE sales support staff was let go. A few days after this announcement Lender Lead Solutions announced that Financial Freedom’s former regional manager for their eastern wholesale division would be joining them as VP of sales. Does this mean that other Financial Freedom employees are leaving too?
It’s no secret that IndyMac has been contemplating selling Financial Freedom but I would think a well functioning Financial Freedom would get a better price vs. low on staff Financial Freedom. I think one RMD reader said it best:
It looks like the Indymacification of Financial Freedom is almost finished.
We wish all those who were laid off best of luck, and I’m sure everyone will land on their feet elsewhere. Did I mention we have a job board???