Bear revamps mortgage unit, cuts 310 jobs

Bear Stearns said today that it was eliminating 310 jobs from its mortgage origination business.

Bear Stearns & Co. said today that it was eliminating 310 jobs from its mortgage origination business and combining all of its mortgage origination business under one umbrella, according to Crain’s New York Business.
With this latest round of job cuts, Bear Stearns has now reduced it mortgage origination workforce, once 1,500 strong, by 40%.
The investment bank said during the summer that it had eliminated 240 mortgage-related positions. Worldwide, Bear employs about 15,000 workers.
As the investment bank with the most exposure to mortgages, Bear Stearns was one of the hardest hit by the credit crisis that roiled the markets this summer.
The firm’s fixed-income segment, which includes the mortgage origination business, tumbled 88% to $117.6 million, during the third quarter.
Under the revamped business, Bear Stearns Residential Mortgage and Encore Credit will merge into a single unit under the name Bear Stearns Residential Mortgage Corp., which the company plans to expand to include Fannie Mae, Freddie Mac and Federal Housing Administration loans.
“These additions will increase our capabilities and further allow our brokers to select the products that best meet their customers’ needs,” said Tom Marano, global head of mortgages, rates and foreign exchange, in a statement.
Bear Stearns is the third firm in two days to announce layoffs in mortgage-related units.