DETROIT (Michigan News Source) – Flagstar Bank, which boasts more than 100 branches and offices in Michigan, is cutting 173 jobs in the state.
The announcement comes as Michigan’s No. 4 bank sells off pieces of its residential mortgage business.
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Flagstar said that by the end of October, 113 employees from its Troy office and 60 employees from its Jackson office will receive pink slips. The Troy layoffs were prompted by Flagstar’s planned sale of its mortgage servicing business to Texas-based Mr. Cooper. The Jackson layoffs were triggered by the sale of its mortgage “warehouse” lending business to JP Morgan Chase.
The Michigan layoffs come after Flagstar’s parent company, New York Community Bancorp., announced layoffs of its own. Seven hundred employees, which is 8% of its workforce, will be laid off as part of a “workforce reduction” plan. An addition, 1,200 employees received layoff notices as part of the sale to Mr. Cooper. However, those employees have the option of transferring over to Mr. Cooper.
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