PHH Mortgage To Lay Off 2,250 Workers In South Jersey

A South Jersey mortgage company plans to lay off 64 percent of its employees by the end of next year. PHH Mortgage announced the layoffs during a conference call this week.

The Mount-Laurel based mortgage company announced plans to lay off 2,250 employees by the end of 2018, NBC 10 reports. It said it has already laid off 650 full-time employees, and expects to have a headcount of 1,250 by the end of next year, down from 3,500 at the end of 2016.

The announcement came on the heels of PHH’s announcement of its financial results for the end of the second quarter of 2017, which included a net loss of $46 million. The net loss for the same time last year was $12 million, according to the financial report posted on the company’s website.

It also recently agreed to pay the United States government $74,453,802 to resolve allegations that they violated the False Claims Act, federal authorities announced this week.

That settlement resolved a case in which the company is accused of knowingly underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veteran Affairs (VA), and purchased by the Federal Housing Finance Agency (FHFA) that did not meet applicable requirements.

The company agreed to pay $65 million to resolve the FHA allegations and $9.45 million to resolve the VA and FHFA allegations.

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