Mortgage insurer Radian Group Inc. announced it will lay off 166 employees, effective Dec. 1 from two of its offices in Pennsylvania. Out of these workers, 66 employees are from Radian’s Delaware County headquarters and 100 are from the Allegheny County office.
The company employed 1,800 people at the end of 2021.
Radian has joined the many mortgage and real estate companies who have laid off employees to cope with a volatile market due to the Federal Reserve’s rate hikes, among other factors.
In response to an email, Radian spokesperson Rashi Iyer cited the slowdown in the U.S. housing market that has affected mortgage-related and real estate companies, as the reason behind the layoffs.
“These changes are deeply difficult, but they are a necessary reflection of current market conditions that will enable us to manage expenses and maintain our strong position over the short and long term. We are thankful for the countless contributions these employees have made to Radian, and we are committed to treating everyone with the utmost respect and dignity as they transition to new opportunities,” the email stated.
Iyer said Radian is offering severance packages, benefits, outplacement services and job training to the employees who were laid off.
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Radian recently announced its 3Q earnings, reporting revenue of $296.2 million and profit of $198.3 million.
Private mortgage insurance protect lenders from payment defaults when borrowers’ down payments are less than 20%. According to the Philadelphia Inquirer, Radian reported an 18% rise in defaults on its portfolio of insured mortgages during the third quarter, as compared to 2021.
Nonbank mortgage lender Pennymac Financial Services announced a new round of layoffs in the last week of October ahead of its Q3 earnings report. It is laying off 80 employees effective Dec 20.
Pennymac workers who were laid off are being offered severance packages and the company is setting up a recruiting channel to help them get rehired in the future.
Pennymac laid off 32 employees in July, before its second-quarter earnings report.
