HFC and Beneficial Closings Expected Soon
Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they are HSBC’s idea, not forced by others. Saving face is important to HSBC. From a business and profit standpoint this is what should happen soon:
HSBC will close specific HFC and Beneficial Finance offices. Offices in problem areas and subprime areas will close first. Expect 90 to 150 offices to close in the first round of cutbacks. Also expect bad publicity from Inner City Press and Acorn if these closings are in redlined areas. Therefore the first round of closings will include a percentage of locations classified as “overlapping geographic locations.”
(November 14 Update - HSBC confirmed closings - see the article here)
Will HSBC close the entire branch network? Time will tell, but saving millions in payroll will show a profit to those in London while appeasing investors. HSBC has learned from Decision One’s mistakes. Second mortgages and bad loans through Beneficial and Household Finance make absolutely no sense. While fewer borrowers will get wrapped up in a trap of negative amortization and high interest rates, closing HFC and Beneficial will give consumers and up side. Borrowers can go a more reputable lender that can actually process payments on time and in person.
HSBC does not have enough reputable HSBC Bank locations in the United States. If they did HSBC could consolidate, centralize, and ride out the storm. Some analysts believe HSBC will forever be associated with predatory lender Household International in the United States. That association has been promulgated by consumer advocates and watchdog organizations, all of whom protested HSBC’s purchase of Household International. During the OCC open comment period these same advocates and watchdogs wrote to the OCC, often more than once. A copy of all material was presented to HSBC by the OCC, through HSBC’s attorneys. The existance of, and positions taken by these advocates and watchdogs, was clearly presented to HSBC.
HSBC’s had a chance to change Household International, which is now called HSBC Finance. Any first year marketing student understands how to rebrand and remarket. Any first year finance student can tell you that high interest rates and oppressive terms will eventually cause a business failure. A simple study of Providian can prove that. Honesty and integrity play a big part in public perception. For borrowers we offer this example: A potential customer calls HFC, CitiFinancial, and one other lender to get a quote and monthly payments. CitiFinancial says the payment would be $350 per month. HFC says the payment would be $275 per month. The customer asks HFC why the deal sounds better. The HFC reps says they are a big company with 100 years of experience. THE truth is the payment is amortized over 30 years but the loan is for the same term as that offered by CitiFinancial. A lie or a scam? You decide, but the bottom line is HSBC never changed it.
When HSBC took loan losses that near or exceed what they paid for Household International it only makes sense to keep the credit card operation and reduce or eliminate the mortgage operation. Expect HSBC to start closing HFC and Beneficial offices by the end of October. Expect closings to continue until many more people are unemployed. And expect smiles in London as HSBC looks to make shareholders, including Kinight Vinke, very happy. In an earlier article we wrote about how HSBC lost the heartland of America. Expect HSBC to crush the hearts of employees just before the holiday season, giving pink slips instead of paychecks as it turns cold.
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I have worked with Household Finance over 3 years (1999 - 2002). It’s sad to hear the same old story about HFC. The problem was never the lending products at HFC. The problem were:
The greediness of executive and upper management.
Mangement wanted to keep their AEs ignorant so that could be fept forever.
HFC had (I don’t know now) great products for borrowers who asked for either fast money or asked a second chance after being irresponsible with their finances.
HFC training became only a “number’s game”. Nothing wrong about this but it would have helped to HFC customers understand what kind of product they were getting into and why.
Who wants to pay high rates? No one!
But if every HFC AE had explained how the credit bureau works and thus what made you or me an HFC client perhaps now the story would be more about responsible borrowers versus predatory lenders.
But management never trained AEs. My theory is again because they wanted them ignorant to simply calling like animals and even worse because ALL they cared was to make money.
No name changes, no color changes, no location changes will change the damage done after so many years of lies and deception.
HFC you will be missed!
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
[…] research wrote an interesting post today on HFC and Beneficial Closings Expected SoonHere’s a quick excerptHFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… Read the full post from Household HSBC Watch Tags: 2007 HSBC via Blogdigger blog search for marketing research. […]
[…] HFC and Beneficial Closings Expected Soon Analysts at Household - HSBC Watch think HSBC learned from the recent subprime crisis, regardless of what they tell Knight Vinke and other activists. After studying HSBC and Household International for many years Household - HSBC Watch thinks HSBC will make a move soon. Changes must look like they a… […]
I currently work for HSBC Beneficial. None of us have heard anything about HSBC closing Beneficial & HFC branches, if it is true, they doing a good job keeping it on the down and low. There are many of us who are anxious to hear about our fate. The article states it expects to see some closings by the end of October, well that is next week. How valid is the information provided in the above mentioned article? We all know something is up…but to what extent, is the question!
Does anybody have anything to back this knowledge up?
[…] He said the firm is discontinuing its non-prime, broker-based mortgage services in Canada and is also tightening its credit policies as part of a “repositioning.” Will HFC and Beneficial offices start to close as part of this repositioning? See more about that with our articles entitled HFC and Beneficial Closings Expected Soon Thinking of making a debt settlement offer? You need to see common settlement scams and rip-offs first […]
I am confused…If HSBC is in such a bad “pickle” why is there stock 3 points away from an all time high, why “honest” lenders like Countrywide (CFC) and IndyMac Bank (IMB) are at an all time low. Simple…the retail model works. The reason for this “subprime crisis” is due to option ARM’s and Interest Only loans marketed to people who do not understand how they worked. HFC/Beneficial never got into these type of loans because they were not a good deal for the borrower. I know it is hard to believe that everyone does not qualify for 6%. Creative financing tightened up the whole market, so if you are not showing a 680 FICO, good luck at borrowing money at ANY rate.
Who wants to pay higher rates…no one. However you have to earn lower rates, or dont borrow money.
Chart the stocks, that paints the picture (HBC)
I would say that the numbers stated about are fairly conservative. As it is safe to say that all branches with not all be closed but the numbers could be upwards of 300 branches. as for the october dates someone missed by about 30 days. and tyler I am not sure where you work at but good luck and I hope you are not affected.
Ok, closings. Most of us have families and holiday presents to buy. If you have any other information that you can share, please tell us. I have heard some horrible scenerios about how all of this is going down. Is the company going to do to right thing with severance or find cause to fire people and demote to avoid severance payments? I even heard one scenerio where they just walk in right before the holidays and change the locks. As a parent, I am freaking out about a job I once thought was secure. Obvoiusly whomever is on this website is concerned as well. Help
It seems a little it messed up that one of the largest banks in the world is keeping very quiet about so many of their employee’s fate at hand. I too, have heard about it all coming to and end in a split second without warning. Latest we have heard is 450+ branches to be closed. I would expect HSBC to take care of it’s fallen employees and give a respectable severance package before the holidays. I have a family that I need to support. So now what? HSBC, are you going to take care of your employees and have the decency to at least let your dedicated employees know what is to come of them and how you plan to “try” and take care of us? Time will tell.
Of course, some HFC and Benficial offices are closing. NO KIDDING! So are so many other companies within the lending industry, and most industries for that matter. With the economy in the shape it is in, there is no other choice. HSBC has to tighten it’s operations somewhere. They have already cut off all products except for first and second mortgages, and some unsecured products which do include live checks. This just cuts down risk, which from a managerial standpoint, is exactly what should be happening. No one could solely attribute this to their past lending practices. It has everything to do with inflation, slow job market, and economic uncertainty. Let me tell you what HSBC does for their customers that you might not hear about. They are the first to help customers out during rough financial times. They have a whole department dedicated to helping customers through hardships such as loss of job, disability, layoff, or change in status which lowers their interest rate temporarily or permanently according to the need. They also do “restructures” which allow the delinquency to be put on the end of the loan, or if a customer calls in and states that they need a month break to catch up on other bills, they give skip-a-pays. What other companies do this? You are so quick to condemn HSBC for their mistakes, but that’s how EVERYONE learns. Over the past 5 years, HSBC/HFC/Beneficial committed and followed-through with that commitment to provide their customers with great products and services. They are one of the few companies that “over disclose”. In order to even do a loan, the company must meet at least 2 net tangible benefits for the customer, or the loan is turned down. They also provides excellent benefits to it’s employees. No company is perfect, but I was shocked to see a whole web-site dedicated to the defamation of one company’s reputation. Who has time to sit around watch every move HSBC makes? If that’s the case, don’t just report the things you see as negative, but give a fair and accurate report, show the good things HSBC does as well. And who are your sources anyway? I was reading through some of these articles, and they are ludicris. Uninformed and completely unsubstantiated. Maybe you should think before you publish your lies on who’s life your affecting.
When are these closings expected? Could the author of this article please comment as to the reliability of his or her source? Will these closings affect one part of the country more than another or will they be distributed throughout? Does the author think the earnings potential of HFC/Beneficial is diminishing or decreasing? If closings are going to occur, why is HSBC still hiring for HFC/Beneficial on their careers webpage? I would really like to see a follow up comment to these questions or another article hashing out this prediction a little more thoroughly. I know that HFC/Beneficial has obtained a bad name in recent years….I am just wondering what the future holds for me and my colleagues. If anyone has any other good evidence that this is going to happen, I would love to hear about it.
Thanks.
This comment is in response to Bob C.’s comment.
Bob, as for the other articles on this page…a quick google news search will speak to the voracity of the majority of information on this site. I am shocked that you would be surprised that a consumer watch group exists for one of the largest banks in the world. Of course their business practices are being scrutinized…as are every other large financial company out there. You must either be hiding in a hole or intentionally avoiding any bad press that HFC/Beneficial (formerly Household) has received over the past decade. Research it and see if you feel as positive about this company after you thoroughly understand their lending and billing practices. Although, before you do the research, I suggest you remove your rose colored glasses.
As a former Beneficial employee, this is not surprising. This company was growing waaaay too fast to sustain itself! Goals were set that were rediculous, Management required unrealistic numbers to be met every month or they would fire. This is nothing short of a boiler-room operation and that is not a healthy environment for a legitimate banking entity such as HSBC to operate in. If this rumor is true, I feel terrible for the good people who work hard everyday to care for their families and recieve no honest communication from upper management. They will never see it coming because up until the last minute they will ask for more dials, sales, and loan closings. They will then just hold a conference call and tell them that they tried really hard to weather the storm but the market conditions couldn’t be overcome. Sad, because they had to have seen this coming.
After all the good and bad are said, what are the sources that you are relying on when your analsts/company make representations that such massive closings and layoffs will occur. Please disclose the sources you are relying on.
HSBC will close branches, meetings will be in the middle of the month and then the locations will be known. I am hearing 400-600. Employees kept will be “protective class” employees to show diversity and not the top perfermers which have stuck by the company all these years.
Witman….What are your sources? How do you know this? Please let us know.
As an employee….the 300-700 is correct
I have heard that Nov 12th will be the day we hear. Of course, this is speculation. How do they determine “Protective Class” Whitman?
In reponse to Todd’s response.
Todd,
I don’t need to research this company. I’ve been living it for the past 6 years. If you read my response closely, you will notice I said, “Over the past 5 years, HSBC/HFC/Beneficial committed and followed-through with that commitment to provide their customers with great products and services”. I didn’t say that since it’s inception, that HSBC/formerly Household International’s employees have never pushed the envelope. Notice, I said employees, because the company itself, has extremely high standards. I understand the importance of consumer watchgroups, but what is sad, is this information is not validated. A large portion, is extremely inaccurate. Employees are the first to speak out against companies, but all in all, HSBC has been good to me, and our customers. I dread what is about to take place, but all I, and my co-workers can do, is grab a floating object and hold on for dear life.
Protective class??? My sources tell me it is based on PMW ratings 1st and then seniority.
Bobo,
I believe your idea sounds more accurate. My understanding is it is all about numbers. If you are not putting them up, then you are the first to go, as I’ve already seen in my district with the first round of cuts. I believe, as well, that upper management will be looking at PMW ratings instead of seniority as a defining factor of layoff. Why would they want to keep a maybe, more diverse group that would grind the finance division into the ground deeper than it already is? Why not strip back down to the bare minimum with seasoned, high-producing employees that will keep their heads above water?
We’ve had a hiring freeze for the past couple months for a reason. That freeze was to be lifted on November 12th. That should be the day that we know what will happen. I would think at least 20-25% of the branches to be closed. There are many BSM and DSM positions that are being left open right now because of these closures.
If you are in an area that is not producing or not profitable than I would be concerned. California is a great example. Numerous districts are barely closing 15-20 RE’s a month. Areas like that will be hard hit.
I work for HSBC and the situation in many of the HFC/Beneficial branches is getting out of control. Productivity is at an all time low, branch employees are spending the bulk of their day chatting online with each other asking ‘what have you heard’ over and over again.
Inside the branches the word is that the date was pushed back to Nov. 12th because they could not work out the logistics of closing the branches and fit it in October. It is a multiple wave plan - probably another 10% like earlier in the year and up to 500 offices by years end.
For those of you who are surprised this has been planned for a while. Back when the ‘optimization’ began I overheard a closed door conversation in which the question ‘what is phase 2′ was asked.
Oh and the severance package - its the same package you get if they fire you. Merry Christmas - ill see you on the unemployment line.
Any predictions on where these closings will take place? What about the Baltimore area? And is this really common knowledge in most places because I hadn’t heard a thing about it until I ran across this site. I feel very out of the loop.
Ive been with HSBC/Bene for 10yrs. nothing has changed about this company. There training has always been a joke. Ive managed branches and worked in the call centers. Its the same old thing…telemarketing on the branch side, ruthless collections from the call centers. Is it the employees?..the employees reflect the middle management, while the top exec’s pretend everything is okay. How about calling the same people 5x or 10x times daily annoying the crap out them to solicit high interest mortgage loans. AE’s financing $1700 worth of none credit on a mortgage loan (selling double policies to make goal) at 9.9% over 30yrs. They company has always taken advantage of the credit weak and claimed they did it because they cared! What a joke…there are good people who work for HSBC but if you develope a soul your …out of a job.
I would like to know what locations will be most affected as well. How about Pennsylvania?
Todd and Worried,
This is speculation and heresay on my part, but I keep hearing the coastal states will be getting hit most with this major wave. Places such as California, Florida, the Carolinas, and Arizona. These are places where there are too large concentrations of offices. Where really HSBC put all too many eggs in these baskets, if you will, when growth was good, and now they aren’t producing enough to keep the doors open.
Branches and employees hit will be either non-performing branches/employees or those in ‘overlapping areas’ in the first round. Severance will be standard package because they will sell this as taking out their own garbage and these people where not worth anything anyway (we the employees are about as valued as the customers).
In the first wave, if you are hitting your numbers and you are not surrounded by other branches you should be ok. Florida, California and parts of New England will likely be hit the worst due to depreciation and other market factors.
There may be/probably will be a second wave or maybe more to this. That is unclear. Understand this - delinquency and chargeoff are driving most of these changes which have driven rates much much higher. So can someone answer me this question - if the loans Household wrote over the last few years (a company which did very few ARMs at the retail level) at 7-8% with a PRR product are defaulting what is going to happen to the first mortgages they are writing today at 10-12%? Well common sense tells you that people with bad credit are less likely to make a higher payment so they are simply writing their own delinquency and chargeoff for months/years to come.
The sub-prime industry only can survive with rapid appreciation. This allows poor credit borrowers to re-finance every year or so and pay off their mortgage and other debts before they become unable to pay. In this market for many of them it is not possible to re-finance and get a fresh slate so they are doomed. The 11% first mortgages written in 2007 are probably more risky than the lower rate loans written 2 years ago despite the massive underwritting cut backs.
Thankfully ive found more stable employment and gave my notice this week. Good luck to those of you who remain …..
What was your position HSBC employee?
Do you know when the “date” will be? I’ve heard 11/2, 11/12 AND last week in November. Any idea how they will make announcements? Conference calls….etc?
I think for all of us the “not knowing” of what’s to become of us is the hardest part. So many rumors going around that you end up not knowing what the heck is going on. I still hear Nov 12th is when we how significant the cuts will be, what they are is the million dollar question. Who knows if Nov. 12th is even true. If anyone has more accurate, inside information, would you please disclose?!
Sorry, that is the best I have. Any attempts to confirm with my superiors where futile.
I wish you all the best of luck, in my time with the company ive seen a lot of quality people somehow get mixed up in all of this and I wish them and their families the best as they get through this all.
I recently was an exemplary employee with HFC/BENE/HSBC for almost 12 years of my life. Having been nominated for employee of the year twice in 2004 & 2006. I earned well over 6 figures in income for 2006 (my best financial year of my career)and was responsible for the purchase of bulk loans on a secondary market which totaled > $436mil. I was proud of my work, my colleagues, and my company.
That feeling of pride changed after I was terminated in July from HSBC due to major layoffs. Sure, I was given a nice letter to tell prospective hiring managers at other companies that it was not my fault, because it was a business decision. My severance was only 12 weeks of pay, although an additional 60 days pay was promised by the H.R. agent delivering the bad news (he is now commonly known as the grim reaper) but that additional pay was retracted. They gave us 90 days of paid COBRA too. Finally, for my previous accolades & merits, I received a pro-rated payoff of a 3 year stock award which took 4 months to track down. I chased it down since July and just received it at the beginning of October.
I frequently wondered, why I was let go. If they were intent on keeping the brand name around, they very well could have found a place for me within another division. I was expendable after 12 years and I understood that it was a business decision. But, then why was I hearing from reliable sources that the new CEO was blaming our unit for the troubles it faced? Many of these changes were dictated by the changing mortgage market. Is anyone watching the news? Foreclosures were at an all time high… EVERYWHERE! This CEO had the gall to refer to us as “the Brandon Incident.” Brandon was a former hub for subprime and a jewel in the Household crown. We grew to enromous heights and did so with class. We were respected by our clients, employees and competitors!
This new CEO put aside the fact that predatory lending issues and decisions of unscrupulous HSBC executives were more at fault. Buy deeper, they told us. Let’s not count mortgage lates unless they were 90 days over due in the last 12 months! What a brainiac idea that was!!! Let’s lead buys with untrained contract underwriters and copy the 1008 rather than underwrite, was another ingenious mandate!!! On one occasion we were even instructed to buy all the loans in our pools across all of our buys in the United States that week… an order that came from the head of our division, because we were short numbers and man power!) Bottom line… WE DID AS WE WERE TOLD. Even though we questioned it, those questions fell on deaf ears and were unanswered.
My stomach ached for months. My family suffered through my pain. In the end I survived, a better person more in tune with the severity of our society. I went on interviews everyday near the very end and busted my back to find a new job. I am happy where I landed, but afraid for the future because it too is a job that is tied to mortgage lending. I survived 4 waves of layoffs prior to my finale with HSBC and agree that not knowing about my future was/is the worst part of it.
Now I see former colleagues and friends going through the same thing that I experienced and I feel bad. To all of you I say; learn from what I have shared with you. Hold on tight for it is going to be a bumpy ride. HSBC cares not for you or for their customers, but loves the sound of money.
Well it sounds like the rumors have made it around the country.. Has anyone else heard the rumor of Citi???? buying part of the Household & Beneficial brand?
My area has been hearing of cutbacks and closings for quite a while.. a matter of fact my district and state have been hit with several closings. Someone needs to make this come to a head because no one can focus on doing their jobs at this point,we feel as though it is a lost cause to produce since we feel the end is near. The damage this is doing to our nerves is enough, if HSBC cares- they really need to stop leading us on and start producing some information as to the stability of our positions.
Still waiting on the author of this article to make a statement as to the reliability of this prediction and their sources……*cricket, cricket*
Sara….what state are you currently working in?…If you feel comfortable sharing.
I was recently let go by Beneficial. I get my information from friends still at the company. Meetings now are end of November for branch closings. 29th and 30th. Legal is making sure cuts are right due to potential lawsuits for protective class filings etc. Also, HR policy has been update with very bold “NO Contract and we can terminate employment at any time.”
HFC and Beneficial officies now only have 1st mort product and Auto In Branch (refi auto loans) to sell to customers. (80% 2nd mort but who can do those?) Everybody should see this coming.
Having this right before Christmas is wonderful, HSBC has always stated they want to be one of the 100 best places to work. So they severence people at Christmas? Please look for another job if you are averaging goal or less and are a non-protective class employee. Severence guidelines is under policy. Looks like 30 day notice and a week for every year if you are an Account Executive.
I am in Indiana and it is all but confirmed major closing are going to take place here. All three of our DSMS had taken top today and we almost assumed we would hear something…but nothing?? The rumors of Citi have been on the loose here since last week. DSM’s were supposed to attend a 3 day meeting which was cut to a one day meeting because “something major had happened which changed the optimization plans”.(Overheard from DSM) I think when it comes down to it we’re screwed.
Wow….I’ve heard the Citi rumors also. I’ve also heard we won’t know anything until next year. Ugh!
Anyone have info on branches in the northeast - PA, NJ, DE? Some branches in our district are still producing. As a result, most of us are cautiously optimistic. We know things are going down, we know people will get hurt, but we are hoping we will make the cut. Realistically, we know that some will not. However, for those that do, any word on branch consolidation? If so, the lucky few who do remain could make out like bandits with a district full of leads.
Don’t let them fool you. I’m an SAE and I overheard a DSM speaking to a “non-branch” employee about closures. They said “there were 1400 branches…after the last round of cuts…there will be between 900-1000 branches.” I was shocked. They didn’t even try to be sneaky about their conversation. They spoke of cuts happening in all parts of the country (I work in the western 1/2 of the country) and based on the last round of cuts…PMW, seniority and geography were all reasons mentioned by my friends who were cut. I have been hitting my goal, barely, and our branch hitting our LAG, barely, for nearly 5 months now. I feel bad for those currently on CA or in underperforming or older (run down) branches. I just need to hang on long enough to finish my degree and have the company pay for it before they can me. Good luck to all.
All this guessing and wondering is making me stressed! I wish we knew the extent of the closings and layoffs…Guess this is a waiting game. I am wondering if they will close branches where there are multiple locations fairly close to each other. I know in or around Baltimore there are a ton of HFC/Beneficial branches. Seems like maybe they would just consolidate and downsize…Which still doesn’t offer much help if your one of the downsized. Ugh. Just wish we knew already.
Rumor is that we will be rebranded HSBC Finance. If you are within 10-15 miles of another branch you should be worried. That is pretty much fact. Especially HFC and Bene offices near the same location. If you don’t have a meets or above on your PMW—get another job!
they are also checking their employees credit reports to see if anyone is in default on one of their loans.its policy to terminate employees who are not financially responsible specially when it comes to HSBC loans(RS,cards,suzuki etc)IF HSBC is shutting down their sub prime unit then there really is no job left for any bene or hfc office employee. they need to restructure their loan programs, lower their rates, higher their lending standards and start offering purchase money. ah last but not least they need to do awya with CII.that thing annoys the hell out of me
the credit report thing sounds a little extreme…..anyone else have a date that everything is going to go down?
I thought so too…Sounds like the gossip has turned a bit extreme. I would like to know possible dates as well. Also, I think the idea of being rebranded is very possible. It makes sense that they would consolidate and rebrand. Although I am not sure that the HSBC name will be any better than HFC or Beneficial now….Anyway. I am tired of waiting and would just like to know what is going to happen. It is definitly a waiting game.
the credit thing is not extreme, they check yuor credit once every 9 -10 months.3 ppl in our branch all had inquries in 1 week on their CB.Its an easy way out for them to say look mister, we re laying you off because you havent met your financial obligations and you are behind on one of our companies credit crds
I have heard from several sources including HR that there will be a major announcement on the 12th of this month. Also, while job searching I ran past this link http://www.jobtarget.com/link.cfm?c=VGFzY7s94m29 which appears to be a solicitation for 3 - 6 month contract for a freelance writer. This normally means that wholesale company changes will be made and there is a need for a individual to write business friendly information; so as not to cause an uproar in the industry and/or market and to keep the company stock (HBC) unimpacted.. My guess is that something is eminent and it appears to be more than a mere reorganization. If employed on the mortgage side would seek other career avenues ASAP. Good Luck!
Check out the hsbc website under careers…..lots of states and cities missing all of a sudden. No mention of Bene of HFC. New branch positions mentioned.
To respond to a couple of things.
1/ The CB pull issue is likely happening - between that and the PMW issue the company is stockpiling a list of people to get rid of that they can blame the employee, not their own mismanagement for. For years Household has turned down potential employees for the slightest blemish on their credit.
2/ bobo - the career track postings, earlier this year those where consolidated under the RAP program - 1 office with a ‘qualified’ manager would handle the initial hiring stages for an area etc. etc.
3/ Many people have mentioned how these rumors and uncertainty are driving them nuts - exactly what they want. If you quit they dont have to pay your severance. Ive heard they are jerking people around to cause people to quit to aid their consolidation efforts.
Hang on tight people - its gonna be the bumpiest of rides. Your reward for loyalty? A severance package smaller than the grinches heart …. right before christmas too, how fitting.
Yes- I know about the RAP program. However, how do you justify complete states missing.
BoBo….I am not seeing what you are talking about. HFC Beneficial is still there…on the side bar it lists 31 jobs posted. Is this what you are talking about? States….Like no jobs are posted for those states….or they are not listed at all?
You are right….there are states missing from the scroll list.
IF i was to get laid of on the 12th as we are assuming, then would i get paid for this month if im hitting my quoata?
SHUT UP AND GET TO WORK! Just hit goal
You know what “dont worry”, do not tell anyone to shut up! If you’re going to be rude, SPARE US ALL PLEASE!!!!!!!!!!!!!!!!!!!
I am with you on this one Tyler. Spare us!
Looks like Michigan, Wisconsin, Nebraska, Iowa, Kansas, Colorado, New Mexico, Wyoming, Maine, West Virginia, Missippi got cut from the list of states offering jobs at HSBC. I guess we’ll find out soon. A contact of mine though a couple divions or even an entire region would be cut and reallaigned. I think that mr. “don’t worry” is on the chopping block as well and is feeding into the upper management jedi mind tricks. No one is safe.
If you spent as much ime working & trying to make money, as you you do running around with “the sky is falling” attitude, maybe you would not be worried about your jobs…
Ok Mr Dont worry and You Know Who - I spoke with someone today that has been told unofficially they will be getting closed down. This employee has been with the company for several years and is actually having his best ever numbers at 200% of goal. How do you two explain that?
You have been drinking the punch and are bought into this ‘everyone losing their job deserves it’ mentality they want you to believe.
Since working for the company for many years, I know stuff. November 15, 2007 is the date that MANY people will be laid off. I have heard from people in Rob O’Hans offices of this date and the number of 350+ offices. I know, I am stinky Pete of Grand Rapids! If you work for HSBC, RUN!
OK, I keep reading on and I am seeing a trend. Tyler—Knowledge? I have knowledge–the gave me 30 days and they came in, took the sign down, took everything out of the office, and they said ‘good-bye.’ If you want a picture of the outside of my closed down branch and a business card of mine, let me know. I also echo the thoughts of the 10/24 posting, the branches are CLOSING! And yes, the stock is doing well! I got my stock option statement today, I made a bunch of money that I can cash in 1/1/08. I also made a bunch of money with my 401k plan with HFC! BUT….THEY WILL STILL CLOSE YOUR BRANCH. Oh, by the way, have they been really strict on time entry, core vacation, etc? LAW SUITS COMING SOON!
WOW, I keep reading through the comments! Per Bob C on 11/27, HFC has to do two Net Tanagible Benefits, Hmmm, Bob C, you suck! If you have work for the company as long as I have, you already know that the NTB’s can be made up! Ohh, Mr. Customer, I can lower your term and pay of your deliquent taxes… Ohhh, your in an ARM, and I can reduce you from 29 years to 26 years, yeah! I meet 2 NTB’s! I win! Anybody on this website can respond to me about branch closings, It happened to me and it will happen in the next 2 weeks to a whole bunch more!
“OK ENOUGkH” STINKY PETE AKA K.C. WE KNOW WHO YOU ARE. GIVE IT UP AND BE GLAD YOU WERE ALLOWED TO STAY AS LONG AS YOU DID. p.s. SORRY I STOLE YOUR LOANS
Anyone know how they will tell us that they are shutting us down? Will it be an email, conference call….HR showing up at the branch?
I am so dumb founded how everyone on here is starting to seem so evil. I work for the company as well, I know the stress this has on everyone including myself. I would hope this is a place to come more to talk about concerns then to bash everyone and hate on people. Aren’t we all going through a hard enough time as it is..can’t we keep the name calling for when we were in 1st grade? We are talking about lots of people losing their jobs, possibly their homes…people trying to support their families and you people have the nerve to come on here and talk trash to each other? I come home with this stress everyday and I guess finding this was a way to “release” some tension, instead it is just creating more stress and more worries for me. I think that most of you are right, we will know more information soon, that is inevitable, but people just don’t know how to stop gossiping to each other and making this situation a million times worse then it could be. As I watch all these districts in a panic, people that I have gotten to know well over the past few years, it makes my heart break. Good luck to all of you, I hope you kind find some sort of peace…
well, a career change alwyas seems difficult at first, but think about it. Its even harder to do loans with todays guidelines, we cant do 2nds no more and you d need to ctach atleast a couple of 1sts to make a somewhat decent check. So even if you were to stay chances are youre just making your base pay and you might hit goal 4-5 months out of 12 or atleast in my market thats the way it works.So based on that lets assume youd be making about 45-50k annually. Theres jobs out there that will pay you about 40k a year and you wouldnt have half the stress youre going thru right now. I remember days when I d do no RE’s 2 phls and a bunch of nre’s, hit my goal and make a $3200 paycheck. Whts the probability of that now? Consumer loan guidelines have changed and theres no more PHL. Even if you we did keep our jobs we d be taking paycuts so Im done worrying myself about whats going to happen. I put alot of thought into and Ive conluded that everything happens for a reason and maybe its time to move onto a non commision non housing market related job. Having worked for HSBC on your resume itself will benefit you at one point when youre being considered for some other job with a different company.my 2 cents….
As far as how they let us go Bobo, my DSM told us last week that it wont come out of the blue at once. Everyone will be given fair notice and info on their severance pay. Closing down a branch doesnt happen in 2 days. All customer will have to be mailed letters that their accounts are being transferred, they d have to sit down and consider which branches are going to be shut down. They have to figure out how they’re going to rebrand the company. If they choose to hold onto HFC and Bene keep in mind they cant crossbrand so Im sure youll have atleast a couple of months or a month at the least to find a new job.
The thing about rumors, they create tension and allow your minds to take over and imagine what could happen. Would you rather get laid off with a good comp check coming, or with just a package? I believe EVERYONE is stressed. How much of that comes from fact and how much comes from imagination? How many people have lost their jobs that did not have performance issues? From, OH, to Carnel, to branches across the US, I have not heard of any employee who was working their tails off get laid off. I have heard of people who cannot relocate or are too prideful to step into a lower position. I never saw pride pay bills, only hard work and a pay check. Create your own stress free environment and don’t listen to rumors…only 50% are true. The rest is over zealous imagination.
So you know who its not a bad thing to get demoted? Sure some people wont take it due to pride - others cant survive with an average of 10k salary cut PLUS the fact that they still need to perform or be cut again with a smaller severance (dropping career bands). I do agree with you that no matter what happens we need to perform and in the worst case scenario take as much $$$$ from this company in bonus as we can before we go but you cant diminish the severity of all this.
Ive been told this year is only the first round …. we are being ‘optimized’ (love how they make this seem like a good thing - here drink the punch, dont worry that everyone else here in Jonestown is lying face down in the grass dead) to make us more attractive for sale. However, the market is flooded with more attractive sub-prime platforms to buy such as wells fargo’s and countrywides - neither of which have the stigma of HFC. When HSBC decides they cant sell us - that is when the true hammer falls.
Keep in mind all of you who think you are safe due to performance - the housing market in many areas is projected to sag for 2+ more years and home values will drop another 5-30% depending on which expert you listen to.
As my boss put it ‘this is only round one of I dont know how many’.
It is what it is …. companies fail and HFC had a 120+ year run. Much of what has happened to HFC is an indictment on the American economy and how companies in this competitive global market are allowed to show no loyalty to the employees they demand loyalty from. Unless the housing market turns and the fed undoes the massive damage they have done then we are all in serious risk of losing our jobs.
Keep selling guys and keep your resume online - if you get walked out the door then you need to make that walk with your head up and the only way you can do that is to give 110% while still on the payroll.
EVERYONE JUST NEEDS TO WORRY ABOUT CONTROLING WHAT YOU CAN CONTROL! IF YOU PUT AS MUCH EFFORT INTO EXCEEDING PLAN YOU WOULD NOT BE WORRIED! GO MAKE SOME DIALS!!!!
I have been with this company for a long time and have held numerous positions. I would advise all of you to stop worrying about things you cannot control and if you have concerns about keeping your job at HFC/Bene then you probably have good reason to as you are most likely some of the non-performers that have been mentioned in the various postings. Put yourself in upper managements shoes and having to decide who stays and who goes. Although you all may think this is an easy task, I can assure you it is not. Most of you are correct in that your PMW’s, base salary, time with the company, and future developement potential have been reviewed and compared to your counterparts (not your credit bureau). If you have been consistent then you should have no worries, if not…get your resume ready. If your resume is on Monster.com or any other hiring website, your HQ knows about it as the RAP has been busy compiling lists of individuals that are actively searching since they are obviously not looking at resume’s to hire new employees due to the hiring freeze. I personally am tired of the rumors that mostly start with the employees that complained even when the money was flowing and the times were good at HFC/Bene. Decipher for yourself what you are going to believe, but if you have been consistent your ENTIRE career and not just on a month or quarterly basis, then you should not have the worries that I have read on this blog. Yes, there will be some states heavily affected (CA,NV, NY, FL, TX, and midwest) but there is nothing you can do about it and to put things into perspective a bit for you complainers…even if you do stay…the potential for making good commissions for the next 12-18 months is not going to be what it was in the past….if you can’t handle that….like I said..get your resume ready.
Is it true that all those states in the Midwest are closing completely. Please let us know if you know something. We all have families to take care of. Please tell us.
No they are not discontinuing doing business in all of those states, however, there will be signifigant changes to the business model. I would suggest keeping your eyes open for other opportunities. I too have a family and although I am fairly certain that I will not be among the optimized, I have been forced to ensure I have a back up plan if the worst of the projected outcomes does become a reality in the next few weeks. It never hurts to get your name out there and interview just in case.
Ive worked for Beneficial/HFC now for 11years. It is sad to hear such bad rep about the company when in all truth, Beneficial/HFC has helped a lot of people who are in bad loans. Bene/HFC are always looking for benefits to assist the customer and meet the customers needs. Its unfortunate to hear stories when the truth is the media instills garbage talk in the publics head with articles such as these. Benefical and HFC both have helped many customers who are in a bind and cant get assistance elsewhere. The customer service is one of the highlights that Bene/HFC offer that other companys do not!!!
Hey “Annoyed” - you are annoying. It’s always nice to hear from someone who thinks as highly of themself as you do. Spare everyone the corporate b.s. and get back to brown-nosing that no doubt is an art you have perfected.
Well, I can simply read these posts and tell exactly what position everyone posting holds.
Ill lay it out for everyone, the truth of it all lays in the middle ground. There will (my source says end of Nov.) be a major hit coming. They will try to do this round based on performance, however, that is no guarantee even the best of us will be safe as some areas will need to be cut deeper than others. This is NOT the end either - more cuts are planned so dont feel all warm and fuzzy inside if you still have a job once the smoke clears, you just might be one of the lucky ones that can afford xmas presents.
To those who say “shut up and dial” well you are correct, we must control what we can control. However, I think you are being pretty ignorant to ignore what everyone is going through right now.
Since we are all, I assume, still employed by HSBC that means we are still on the same team right now. We should act as such then. Share what you know and stop passing judgement. I see a ‘performers’ vs ‘non-performers’ mentality developing which is very unhealthy. Due to market conditions ive seen BSMs who have peformed at the highest level, ranking in the top few in the entire country just last year now rank in the bottom of their own division ytd. We all are employees of the same company, we all have families to feed and we are all stressed to the max by this - we built this company as a team, we all made good money for years as a team …. if this is the end then lets do what great teams do, go out with a champions mentality: fight to the end and do it as a team, supportive of each other.
I hear the guys on here saying ’shut up and dial’ and I just laugh and laugh. You have to understand that it is this mentality that has put HFC/Bene in the position it currently finds itself. Contrary to what you will hear when the axe drops, this company simply grew too fast to sustain itself! They will tell you all that it was market conditions and difficulties in the subprime arena. Running a boiler-room operation while home values increased 5-15% annually and hiring more and more ‘dialers’ seemed like a brilliant idea to the management. Piece of advice from a person who found a way out prior to all of this mess. If you are a hardcore sales person and are ultra-aggressive, you will have a VERY hard time finding employment if you interview that way. You will need to tone it down and understand that the style you have all learned is not way business in conducted at other companies. HFC/Bene’s management style is the exception, not the rule. I shudder to think that some of the DSM’s and RGM’s that I knew might be entering the job market again. I know my current employer would never hire that type of person. P.S. Put away any notions that you will make the kind of money elsewhere that you are making at HFC/Bene. I took a large paycut and so will you. Prepare for it and adjust your lifestyle. Again, I am trying to help, not hinder your future. Good luck to all of you, as I have many friends still there.
For the Management…..New Job titles, Sr VP, VP, Asst VP—-HSBC changes these on Nov 12 by sending out an email. What…you were a DSM? Oooops, that job was eliminated….you’ll have to take this “other position” or leave. Nice, huh. Same thing will happen up and down the line.
What in the world will that do for the company?
i clicked on “decline” in the HR site statement page and my life has become a living hell since. All my PTL’s dissapeared and 508’s were only left. I noticed that my phone had troubule dialing and the toilet in the office wouldnt flush. Irep called me up and started giving me rediculous stips to work with on my deals that i thought were ready to close. My SA then began sending all RESPa’s to my house! They even took away my ability to view the internet!!(oh wait i never had that ability) DONT CLICK ON “DECLINE”!!
Is it possible that all the rumors we have been hearing were only about today’s cuts in the mortgage backed investment arena? Just a thought. I was hoping this was a possibility anyway. Kinda doubt it though.
What are you talking about controlwwhatucancontrol??? What HR site statement page???
You all did notice that HSBC Finance (i.e. household) closed 22% of its branch network in Canada in October right? I didnt see mention of that one on ‘connect’ did any of you?
It actually was on the news part of connect
Actually the Canada closings were on Connect. Not sure what HR link you are talking about. Quit stirring the pot, learn how to search for bulletins, or at least how to read them. Forme Bene Guy seems to make a lot of sense. Let’s be real, you ride the wave as long as you can and make the best of the lows. But all of us were making too much money…The average attorney makes $80k/year. The average doctor excluding plastic surgeons make $190k/yr. Our average AEs were making, $65-75k. BSMs $125-$150k avg, DSMs $200k+…DGMs and RGMs who knows..If you live above your means, that is your fault, not the company’s. Go back 4 years, what were you living off of. Did you have to buy the Plasma TV, new car, big house…or could you be happy with spending time with the family and not showing off. or another idea, put 1\2 of it away for a rainy day….as the monsoon may be coming. Just keepin’ it real.
Amyone know if the plan to tell us of our demise is still prior to Thanksgiving?
Insider on August 23rd, 2007 at 7:45 pm
Despite contrary beliefs, the optimization currently under way is a move to decrease uneeded overhead that is cutting into profit margins. This will allow HSBC to better adapt to the changing US economics. Better profit margins allow for pricing decreases and obviously a competitive edge. Put simply a cut in underwriting staff in the carmel area will allow the better than ever technology enabling the complex matrixes in place to do a larger portion of the work formerly only completed by warm bodies. You can look for optimization occuring in oversaturated areas with multiple branches w/i small areas that can be combined into mega branches housing triple and quadruple staffing as that of a typical branch. This too will increase profits and make the company stronger for both consumers, investors, and employees. Some of my very strong concerns at this time are directed more towards the broker market and smaller lenders w/o the backing HSBC brings with it. I am looking to see the broker side significantly decrease which has already begun. What does this mean for small finance employment and investing in the future
Optimizationg going on at HSBC is no different than what is going on at Citicorp, Wells Fargo, Bank of America, Countrywide, Wachovia, etc…. Markets change every 3-5 years. Those that made a lot of money be thankful. There is one constant in the mortgage business and that is change.
Upper mgt (i.e DGM, RGM,DHRM) will be in Chicago 11/14 to find out how many and which branches will close. They will then decide with the remaining branches which BSM’s AE’s they want to keep around based on performance and who knows what else. The announcements “should” be made to the staff on 11/15. The branches that are set to close will have their doors shut by 12/15. So this wave will be done by the end of the year and yes everyone should know by Thanksgiving on who is staying ect…
Sounds like On November 12th the New England Divison will take a HUGE hit. They are said to be sutting down all the HFC and Bene Branches in all of Massachusetts and Rhode Island. Im not sure of the other states in the NE division. This was confirmed in confidence by Christian Crumpacker (DGM). severence pay will be 1month for AEs across the board, 3months for BSMs. DSMs get 6months. any relocation packages for BSMs on up to DGMs that were received with in the past 6 months will be subtracted form the severence.Kinda harsh right before the holidays. announcements might not be made on the 12th but will be made by friday. DGM,DSM, and HR will visit each store by end of week.
Not cool to list who your contact was. Guess you don’t like him too much.
You’re not supposed to put their names on here…..what were you thinking. You’re going to get him fired.
Any word on the Maine & New Hampshire branches?
punking out names of sources is uncool
Maine is not on the pick list anymore on hsbc.com///but probably doesn’t mean anything because rhode island and mass are.
What about Maryland?
I think Maryland is too profitable for them to shut down, however, if you are close to antoher branch…get ready for one to close. If you are not a hgh proforming mgr….then be ready to be told to step down, if you don’t step down, then you get to leave with no severence. Sounds like we will know next week. However it is my understanding that it isn’t over after this week—closings will occur in phases on into jan and feb of 08. If you are an ae with a 4 or 5 on your pmw—-please go find another job!
I am amazed of some of the garbage posted on this site. I will give some of you credit…you definitely have great imaginations when it comes to spreading rumors…..imagine how less stressed you would be if you put that effort into producing better results at your job? FYI, all of the personnel decisions have already been made by the RGM, DGM, and DHRM’s. DSM’s were not asked for their input on personel retention due to their daily personal relationships with their managers, it had to be an objective view from HQ to negate decisions baing made based on emotion.
I am amazed of some of the garbage posted on this site. I will give some of you credit…you definitely have great imaginations when it comes to spreading rumors…..imagine how less stressed you would be if you put that effort into producing better results at your job? FYI, all of the personnel decisions have already been made by the RGM, DGM, and DHRM’s. DSM’s were not asked for their input on personel retention due to their daily personal relationships with their managers, it had to be an objective view from HQ to negate decisions being made based on emotion.
so Annoyed, when are they telling us who stays and who goes?
So….is tomororw d-day…..or is it more likely Friday. Does anyone know?
My advice for employees is to make a list of every customer you sold a loan to. Get thier names phones, address and phone numbers at least. Print screen A-Z report or CII. Have this list ready so in-case your laid off, and you want to stay in the mortgage industry, you can bring your entire pipeline with you.
I was let go by the company a few months ago for refusing to take a transfer. Since I was looking to leave the company for a few months prior, I printed out my branch offices’ entire A-Z list (I stayed late one night and print-screened every open customer, RE & PHLs) along with my own pipeline.
I now work for a mortgage brooker and I recently refied one of my HFC customers. It was a 210K loan and I made $3500.00 on that one deal alone. (I lowered their rate, and the fees where much less then HFC charges). When was the last time you got paid that much on one deal before…..Not when you have to work about volume points.
Believe me, there is money to be made outside of HFC. Im trying to recruit, but help yourselfs out. Prepare yourself for the worst. Arm yourself with leads so if you decided to stay in the industry, you can hit the ground running with your own clients. If you get fired and you want to get back at HFC, take loans away from them.
By the way, dont worry about the confidentially agreement you sign when you got hired. It would cost the company too much money to sue, and not only do they have to prove thate you deliberatly stole the customer, but they have to prove that you didnt bring them to HFC in the first place. But be smart, and youll be fine.
November 15th per Rob O’Han.
Be Smart….are you a complete moron? Do you not remember a little form called a CONFIDENTIALITY AGREEMENT that you signed and also clicked “yes” to before you signed into CONNECT. In case you cannot read…it states that you (while you were employed with HFC and upon your departure) cannot take secured information with you and if you choose to, you can be prosecuted. If you think the company does not prosecute, there are currently (2) former employees that used to work in the Southeast Division (now known as the Florida division) that were prosecuted by the company and went to jail. Good luck you complete idiot. For the rest of you MENSA members that plan on the same thing..why do you think we have HTS? They can trace every email, everything you print, and shockingly enough…that big server in the back of your branch with 7-10 different components…yes it stores phone conversations too.
Annoyed….I dont think your intelligence got you to your position. I said be smart about it. First of all….I print- screened the A-Z list under my BSMs computer…see…she was a lazy BSM and wasnt in the office from 5-8…so guess who had to run loans, dish out leads, check for PTLs and do everything else while she wasnt there. She gave me her user name and passwords. I printed out the A-Z list while I was the last one in the office one night.
2ndly….any loan I do now, that is from HFC, doesnt go into my name…hell, technically im not on the payroll, I get paid in cash….while collecting unemployment….so that ends anykind of paper trail…..I never emailed anything to myself or anyone that would discriminate me. Also, conversations I had with clients about this topic was made on my cell phone, outside of the office. We always assumed the phones are tapped.
lastly, its difficult to prove that loans I do now, came from HFC. Like i said before, they have to prove that I didnt bring the loan to HFC in the first place. With the amount of time our customers refi, whos to say I didnt bring them over from Wells, Citi or Countrywide.
I know you are annoyed….but I said be smart.
Be Smart….hmmmm, I’m sure the records for this site can be had by hsbc if needed. Hope you used a generic email address from your local library or kinkos….if not….you just implicated youself by admitting it on this website. You don’t think they can track your IP address. Your logon name “be smart” is a bit of an oxymoron don’t ya think?
haha….HFC has bigger problems to worry about right now then little ole me
Any News so far?
Be smart you are not only stupid but lack any integrity whatsoever. People with your ethics should be fired.
Be smart is obviously not so smart…so forget about him/her. Let’s remember why we stared posting on this article to begin with….To share helpful information.
I am amazed at your stupidity…you go on a public website..implicate yourself…you sure do take alot of measures to be a self admitted criminal scumbag…good luck with your life as I am sure your ethics and integrity will catch up to you…no wonder you were fired from the company. I am not the biggest fan of HFC, but I am not a liar or a theif and if I ever choose to leave or if I get terminated, I will do it with dignity and class. Be Smart..please do not breed as infecting the world with your seed will only lead to more prison crowding.
Looks like conference calls on “Global Banding” are on the 15th, and DSMs all have a meetings this week….any news on whether just DSMs will know by Friday, or will everything be rolled out to the branches by then also?
Word is they are getting the ‘doom list’ on Friday. But that is not confirmed. End of Nov. is when things are likely to happen.
Ugh. More waiting.
Hmmmm, was hoping “prior to Thanksgiving” meant this week….looks like we may not know until next week. Yuk!!!!
The “not knowing” is hurting us all in so many different ways. But what is the alternative? One survives the layoffs and we sit with one product with the majority of rates we can offer excceeding 10 and 11%? It is a slow death for the remaining. I do not know what would be better? Get laid off now and collect a measlie severance or survive the next “phase” and sit a slow, certain death.
Info will be rolled to the DSM’s on Nov 30th and then rolled to the branches shortly after. It was initially planned for October, then delayed until Nov 16th…finally it had to be delayed due to HSBC wanting to re-evaluate the number of branches closing and the future potential of the branch network. As for the “Global Banding” it is nothing more than a way for HSBC to migrate HFC/Bene employees into their way of doing business. It is a tell tale sign that HFC is not for sale and they do have future plans for the branch network. The main reason behind it is so that if an HFC/HSBC employee is to get promoted or change over to the banking side, they can determine an equivalent position for placement or promotion…do not read into it too much.
considering the fact that the mortgage market has put stress on all of us, not having job security, new comp plans that make it hard to make money lets just think for a second. Maybe a career change will help. Im 25 years old. I ve been with the company for 3 years. My first year I grossed right around 90k.Second year I grossed about 90k again but had to work harder and last year I grossed 79k. I look at my paycheck YTD and see that Ive made 40k so far and we are in november. So lets just say I have a big month and end the year at 48k.Big deal. I know Im prolly gona be making right around the same next year too. What you guys dont see is (atleast in my market-las vegas) its not going to be easy to make those big bonuses.We are in a position where we need to find at least 3 first morts to be able to make a decent paycheck. I get paid right around $18 an hour. So with no bonus that adds up to about 30k a year.Minus taxes and im netting $2200 a month. Whooptidoo! Whats the point? Im taking a major paycut regardless of whether I stay or get laid off. I know my situation might be a little different then the rest of you guys but I honestly have come to a point where I dont worry about whats going to happen. If im getting laid off Im getting laid off. I m not leaving till they come to my office and ask me to leave. I m still trying to make a bonus and I ll be trying to despite all the rumours so even if I had to leave I d be leaving with some cash enuff to pay my mortgage for the month and find something else.Stop worrying yourselves to death and be alert. Theres other opportunities out there. Meanwhile Im dearly holding on to a live check my employer mailed me for $6000 and plan on cashing it if I do get laid off:)
Wonder if the date for rolling out to DSMs based on what region it is. I’ve heard this Friday and the 30th. Anyone know?
I am a former employee of hfc. While I was there, my BSM gave a few of my loans to other AE’s for so they can hit goal. I worked the deal entirely, but when it was towards the end of the month, he told me that I should give the loan to someone else so they can hit goal. (There were times where the loans wasnt going to do much for me). Initial were changed in C2 or the deal was reapped in the other AE’s name just before it was finaled. I just went along with it because I wanted to be a team player. I always kept a record of the name of the customer, the month the loan was booked and the AE the loan was givin to. Is this somehting I should just forget about, or is there anything I can do? Im not looking to get paid on these deals, I guess I just want it to be known that I worked hard on those deals and never got any credit.
I know this is off the topic of the site, but there seems to be a few upper managment type of people in here, just looking for some advice. If this is something I should let someone know, please advice of who and how? Thank you.
To help with a question: It is against company policy to switch initials and if they need to be switched for some reason (ie cmr called in for you while you were at lunch and another AE took app) the BSM can change the initials within 24 hours after the app was taken and they need to comment why the change needed to be made. I would tell your QAC or HR about this. This could possibly get your BSM terminated.
What’d ya all think of the conference call today…was hoping to get more specific info.
dido
I love this website. Good luck to everyone on here. 250 - 300 branches closing - There are going to be a lot of unemployed BSMs in a few days. What will you do with yourself? You know what is funny? I am in such a crazy state about not wanting to be optimized that it is all I can think about. However - how many times have you been on your way to the office for another million hour workday when you think to yourself how much you’d rather be doing something else? It is a love hate relationship with this job. This job has a way of becoming your entire life. How many employees on here have time for anything extra? At this point, the decisions are made. I’ve worked my ass off for years (and didn’t do all the slimy things of which we’re accused) & have always stayed above goal. Unfortunately for me & a bunch of my fellow colleagues, I live in the great state of Florida. There is nothing you can do about it at this point. If it is you that goes, maybe it is just meant to be… at least that is what I keep telling myself.
I feel the same way…..with 10 years on the job, most of it in management, it will be sad to go. I too, as do most of us who have been around more than a couple years do have a love/hate relationship with the company. You live and breathe Beneficial. A lot has changed, and I do very much miss the ole days before the mergers and buyouts….goin’ chasin’ and taking the afternoon off wasn’t all so bad. However at this point it is God’s Will what will happen to all of us. It is extremely hard to manage a family life—so, it may be in our best interest if we are optimized and forced to see what else is out there. The hard thing will be is if most managers are just demoted and not optimized, as I believe the plan was….what do you do then? I guess we will see shortly.
Everyone needs to be worried !!! This is a way of life when companies give mortgages to consumers who cannot afford the loans and put them over equity (AMERIQUEST)they will eventualy shut down!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
lalala - What will you do? What if they offer you a SM or BGM position in a superbranch? I am hoping for at least that. I don’t think I could go to be an ASM after all of the years I’ve invested. Do you take your 12 weeks of severence or stick it out because of your tenure? Damn there are going to be some tough decisions ahead! I really wish I could fast forward and just get November over with already. It is so hard to concentrate when all of this is going on.
There was a DSM and above conference call today, 250 branches shutting down across the country. I was told that DSMS will make an announcement depending on districts on friday or monday. Divide 250 by 50 states and you get 5 offices a state. Now some states (california) have HFC and Bene offices in the same shopping centers. Theres alot of HFC and BENE offices within a 5-10 mile range so those are the ones that will be shut down Im assuming. Also they dont just come and layoff the whole branch, they pick and choose who to keep and move AE’s around. BSMS will be given AE positions so they have priority unless they were on their way out already. Lets wait and see…
The conf call was for band A & above - so ASMs on up were on the call. 5 per state doesn’t make any sense. States like CA & FL are going to see a lot more than 5 branches close. I’m figuring somewhere between 20-30% of the branches will close or consolidate in those markets. They may offer BSMs positions as AEs, but that is an enormous blow to your wallet, because they aren’t making anything right now. Plus, who would want to be an ae in this market? They truly have the hardest job right now. They have nothing to offer, yet the expectations for production remain relatively unchanged. You basically have to kill yourself to pull in 2K. I have never had more respect than I do now for the “heart” that these employees show on a daily basis. God bless them.
you hit the nail on the head Sailing. AE’s are being put on corrective action in an environment where its nearly impossible to hit goal. There are many AE’s out there who are great sales ppl but as we all know once a deal is sold it has to run through the obsticle course (aka IREP, income, appraisal) for it to close. Numbers dont tell the whole story.
With SVI gone we are now a 100% “full doc” company. You’re asking AE’s to sell full doc loans at 11-13%. But the standards for AE’s performance remains the same. Cracking the whip on the AE’s isnt going to fix things.It will have a reverse effect on production and create a climate of frustration and panic. The whole process and business model will have to change to adapt to today’s. I really hope some new blood (hopefully educated and experienced ppl from the HSBC HQ) assume some influential positions within CL. A majority of upper managment was placed there b/c of their sales skills..not managment skills. We need LEADERS..not SALESMEN in key positions.
No way BSM’s would agree to become AE’s today. All the ppl who are BSM’s today were AE’s when business was booming and the public was very receptive to refi’ing and equity wasnt an issue.
Good luck and god bless u all
::end of rant::
UPS is hiring
lol
Check my post from 11/2…looks like I was right. Now we wait and see which branches will close, to be announced by 12/10/07. If there are 260 branches closing x 3.5 AE’s per branch = 910 employees. Add to that 520 more (2 per branch for the SA and BSM) = 1430. Add to that, the no longer required “support staff”, let’s estimate 150 for a grand total of 1580 employees that will likely be out of work during the holidays. It’s gonna be a Blue Christmas for quite a few homes…
That estimate makes me sad to think about. So many people!
What makes it worse is they keep everyone in the dark and expect ppl to just go on about their business, make dials, setup f2f like nothing is wrong. My question is if HSBC has determined that investing in mortgages is not profitable to them then what kind of changes are going to be implied on our loan programs, salaries and bonus structure. If we are moving towards being a company that is not going to lend subprime and raise our loan criteria requirements then what are we going to use to substitute that with? Purchas money would be one option I hope we get into.Theres more money in that than refis at this point. Also not being able to do seconds is making it very tuff. I think the rreason we dont do 2nds higher thatn 80% ltv is becuase properties that foreclose 2nd liens are pushed back and the first lien is honored. I dont know. Im just ryting to hit my goal so if i have to leave I leave with a bonus
Yo whatup T-Dawg! All this fuss and yet…nothing to worry about, everything that has a beginning has an end - so will all this B/S, thus returning things back to normal!!!
What about branch closings in VA? Any news on that state?
sorry I thought that they would announce on friday. They are shutting down one of the divisions, It has been confirmed from many sources that it is the New England division, that will be the bulk of the closing out of the 260 branches. the market is just too bad. I have been working for the company for over 4 years and I just cant wait for it to be over. It was a good run but now its time to more on. good luck finding jobs to everyone from the NE division if you hear of any good jobs let me know.
Do you think Altanta will be effected?
yes
“Big Trouble”,
You stated that they would be closing the New England Division? Is it the entire New England Division or just some of the New England offices? Please let me know.
Thanks
Has anyone heard if any or which WI branches might close or consolidate?
I have heard that the whole NE division was going to be closing, but im not 100% sure if they are just going to close MOST of the NE branches, keep the producing ones and combine them with the New York district. The was a meeting today with the DSMs at headquarters in afternoon. I have a strong feeling that we will know on Monday if not tomorrow. This is information that I have been told by some of my sources that are higher ups that have been with this company for many years.