Pennsylvania-based Newrez filed a WARN Notice in Colorado and Florida on May 2, cutting 123 employees across its Greenwood Village, Colo., and Jacksonville, Fla., offices. The round of layoffs comes on the heels of Rithm Capital, parent company of Newrez, completing its acquisition of Computershare Mortgage Services and Specialized Loan Servicing (SLS).
Neither of the letters provided a reason for the layoffs. The acquisition cost Rithm $720 million and led to the merger of Computershare and SLS with Newrez, according to a press release. The layoffs are expected to go into effect July 1, 2024.
A Newrez spokesman told NMP over email the company could not comment on the layoffs.
On the merger between Newrez, Computershare, and SLS, the Chairman and CEO of Rithim Capital Michael Nierenberg said it provides Newrez added operating leverage through additional scale; it adds co-issue MSR acquisition capabilities to Newrez originations platform; it adds new third-party clients, increases existing client wallet share, and more.
“This milestone marks another chapter in our history of strategic acquisitions to build a leading mortgage banking franchise – a core strategy of Rithm’s growth as we scale and diversify as an alternative asset manager,” Nierenberg stated in a press release.
“SLS will further expand our robust subservicing business and brings with it a great reputation in the market – the team and Newrez share a commitment to delivering a best-in-class experience to both clients and homeowners,” NewRez President Baron Silverstein said. “The power of the combined platform will strengthen Newrez’s positioning in the market.”
