First Guaranty Mortgage Corp. gutted its workforce Friday in one of the largest and swiftest industry layoffs this year, blaming significant operating losses for slashing 75% of its payroll.
The Plano, Texas-based lender disclosed the termination of 428 of its 565 employees in a Worker Adjustment and Retraining Notification filed in Texas Friday and posted Monday. The layoff was first reported by HousingWire. The company confirmed the layoffs in a brief statement sent to National Mortgage News but didn’t release the number of affected employees.
“FGMC has experienced significant operating losses and cash flow challenges due to unforeseen historical adverse market conditions for the mortgage lending industry, including unanticipated market volatility,” Cassie Vacante, the company’s senior vice president of human resources, wrote in the WARN notice.