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Lehman Brothers Closes Mortgage Unit as Layoffs Hit Mortgage Offices
will shut more than half of its mortgage operations and fire about 1,600 people. It expects to close its 60 retail branches and five support centers within two weeks, and has halted all wholesale mortgage applications from brokers. The cuts will shrink Accredited's workforce to from 2,600 to 1,000.
Capital One Financial, the McLean-based financial services company, said it was closing a mortgage banking subsidiary and eliminating 1,900 jobs, joining a parade of firms that took steps yesterday to adjust to the widening credit crunch.
The U.S. mortgage unit of HSBC Holdings announced yesterday that it will close its office in Carmel, Indiana, and lay off about 600 workers. The firm suffered several billion dollars in losses from U.S. real estate and mortgage operations during the first half of 2007.
San Diego-based Accredited had struck a deal in June to be acquired by the private equity firm Lone Star, but as financial markets froze up, the $400 million deal fell apart, Bloomberg reports.