Subprime wholesaler Equifirst confirmed today that it will cut jobs amid what many expect to be long-term downturn in the non-conforming mortgage market. Per Bloomberg:
Barclays Plc’s EquiFirst subprime lending unit will cut jobs in the U.S., following rivals in firing staff amid rising defaults … “This is an EquiFirst-made decision in response to the contraction of the industry and to make sure we have a future in the mortgage lending business,” Equifirst spokeswoman Jennifer Sharpe said in an interview today. “Barclays is committed to the non-prime business and very supportive of EquiFirst and its management.” She declined to say how many jobs will be cut.
EquiFirst ranks the nation’s 12-biggest subprime wholesale originator, and employs roughly 1,400. While the company will not provide specifics, a range of estimates provided to me by alleged former employees today would put the cuts in the neighborhood of 20 to 40 percent. Whether correct or not, who knows … Barclays Bank PLC bought EquiFirst for $76 million in April in a deal with Regions Financial — the price was 33 percent below the originally-announced amount, due to market turmoil at the time.
