The home loan unit for New York outsourcing giant Genpact is laying off 124 employees in Richardson as another firm in the area is feeling the impact from a slowdown in borrowing.
The layoffs began this month, according to a filing disclosed by the Texas Workforce Commission last week. Genpact doesn’t fund mortgages, but through its office in Richardson, does the back-office work processing loans for banks and lenders that do. The unit handles existing loans for banks by collecting payments and handling borrowers who have fallen behind.
“The decrease in U.S. mortgage loan processing that is occurring across the industry means a necessary reduction of mortgage processors and underwriters,” the company said in a statement to the Dallas Business Journal. “As a result, Genpact has to unfortunately eliminate positions that serve mortgage clients being impacted by this reduced mortgage volume.”
The mortgage industry has run into a wall this year as interest rates are climbing and would-be borrowers are having a hard time finding homes for sale – especially affordable ones. Last year, Capital One announced it was laying off 950 employees from its mortgage center in Plano as the bank exited the business.
Genpact said it is providing severance packages and offering those laid off the ability to apply for other positions elsewhere in the firm.
The mortgage unit is just a small part of the company’s operation that counts about 78,000 employees across the globe. Genpact reported nearly $64 million in profits during the first three months of the year, up more than 21 percent from the same period one year prior.
The company was started under the umbrella of General Electric in 1997 and was spun out as an independent company in 2005. The firm went public two years later, and Bain Capital bought most of its shares in an attempt to grow the company in 2012.
Largest North Texas Mortgage Lenders
Ranked by Number of local loan applications, 2016
Rank Business name Number of local loan applications, 2016 1 Wells Fargo Bank NA 36,228 2 loanDepot 19,000 3 Quicken Loans 12,022 View This List