Showing the impact of rising interest rates in the real estate market, PIMCO-backed FGMC last week laid off 80% of its approximately 500 employees.
According to one employee they are no longer accepting new mortgages which suggests the firm will be shut down.
In a written statement, a spokesperson for the lender said FGMC:
“made the difficult but necessary decision to institute a reduction in force as the mortgage market faces significant, unexpected, and unprecedented economic pressures. The sharp and unexpected decline in performance reflects the intense pressure on mortgage originations due to the dramatic collapse of the mortgage refinance market and the weakening mortgage purchase market, which has suffered from a lack of housing inventory and increasing affordability issues. These factors have resulted in significant losses on the company’s total mortgage revenues and overall liquidity constraints.”
FGMC is known as Goodmortgage via their retail locations and for non-QM products Maverick Solutions