New from Buffalo New York speaks to HSBC layoffs again. This time mortgage brokers – you know how they are regarded these days – are once again in mourning over HSBC’s decision to shut down wholesale and correspondent lending. HSBC will stop originations through the two “channels” effective immediately, citing “unprecedented market conditions,” according to a memo sent to all brokers and obtained by The Buffalo News. Did somebody leak the HSBC memo? Who would have ever thought that might happen?
The article goes on to say that 225 Depew-based employees at HSBC Mortgage Corp. are losing their jobs. In addition, about 100 account executives scattered nationwide, who work as representatives between HSBC and brokers, are getting cut. HSBC Mortgage Corp. (USA) says they will make loans directly to consumers, through a branch network that is primarily located in New York State.
Brokers are out, direct lending is in, and the move is consistent with HSBC’s new national strategy. Many of the major mortgage lenders that brokers dealt with nationwide have either gone out of business, been acquired or pulled back. Some are under indictment for mortgage fraud, while others – both mortgage brokers and mortgage wholesalers – are telling about sex, drugs, parties, and a general attitude of “mortgage whores.” The degree to which that describes the industry is unknown, but local mortgage brokers in our area disappeared like Jimmy Hoffa. Federal and state prosecutors are picking through the industry’s wreckage in search of criminal activity.
The reference for Depew layoffs is here and the reference to sex, lies, and subprime mortgages is here.
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