Stearns Loan will lay off 348 workers following the decision of Guaranteed rate earlier this month to halt operations of its third-party wholesale channel. A Worker Adaptation and Retraining Notification (WARN), submitted to the Texas Labor Commission specifies that the layoff date will be March 13.
housing cable sent a message seeking comment to Guaranteed Rate, which was not returned.
Stearns is headquartered in Lewisville, Texas, and the state requires that, under certain circumstances, companies provide 60 days advance notice of plant closures or mass layoffs.
Guaranteed rate acquired Stearns Holding in January 2021 from the financial giant Blackstone Groupfor an undisclosed amount, but announced after a year that it was shutting down the wholesale channel.
The last day for brokers to complete a transaction is February 28.
In a letter to brokers regarding the closure of Stearns’ wholesale channel, Guaranteed Rate CEO Victor Ciardelli wrote that the company will be laser-focused on leveraging its “industry-leading buying platform.” , complemented by the best loan officers in the industry”.
Founded in 2000, Guaranteed Rate sought to boost retail loan originations, scale its JV platform and develop new multi-channel capabilities by acquiring Stearns.
After the deal, HousingWire reported that Stearns’ retail business had been brought into the guaranteed rate. The wholesale, joint venture and partnership businesses remained standalone segments led by Stearns CEO David Schneider.
Stearns, founded in 1989, had a significant partnership business, led by Steve Stein, a more limited retail operation and a wholesale channel that was the largest in the industry as recently as 2013, but has lost market share to UWM.