Key facts
- New American Funding (NAF) has laid off 160 employees in its consumer direct division.
- The company cited current mortgage market conditions and elevated interest rates as the reason for the workforce reduction.
- Consumer direct operations typically perform better when interest rates are falling and refinance demand is strong.
- NAF was founded in 2003 and has grown to approximately 330 branches and 2,646 loan officers.
- The company has originated $12.5 billion in mortgages year to date.
- NAF has invested in technology, including AI, to enhance efficiency and customer service.
New American Funding (NAF) has laid off 160 employees in its consumer direct division, a move confirmed on Thursday, as persistently high mortgage rates continue to strain lenders. The company stated the reduction was a response to current market conditions and a need to align operations with market realities.
Consumer direct operations are typically more sensitive to interest rate fluctuations, performing best during periods of falling rates and strong refinance demand. With the 30-year fixed mortgage rate largely remaining in the 6% to 7% range, lenders with significant refinance businesses have been compelled to cut costs and adjust staffing.
Reports from former NAF employees on social media indicated that layoffs occurred this week and in August, impacting various operational roles. One former employee described being laid off with no notice and not being paid out on loans in their pipeline, despite having performance reviews that exceeded expectations.
NAF, founded in 2003, has grown into a national retail lender with approximately 330 active branches and 2,646 loan officers. The company has originated $12.5 billion in mortgages year to date, a figure that follows $21.8 billion in volume last year. Despite market headwinds, NAF has continued to invest in technology, recently partnering with Kastle to expand its use of enterprise AI for customer interactions and self-service.
While NAF experienced a net loss of 62 loan officers in the past month, it has also continued to add select teams, such as originators Shane Masterman and Christian Johnson who are launching Cantera Home Lending on the NAF platform.