Option One Layoffs UPDATED: CONFIRMED

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The internet scuttlebutt is that Option One, a subprime lending poster child, has started a massive round of layoffs that will take place between now and the Fourth of July. Here is the gist of it from some of the popular industry message boards:

Option One had a phone conference today at 1:30pm EST and announced to it’s remaining staff that:

*Several branches will close effective 7/2/07 (Currently have 21 or 22 branches and will close all but 8 or 9 max).

*Of the 8 or 9 remaining branches, some will additionally close within eight to twelve months.

*They are releasing at least 44% of their production (internal) staff effective on 7/2/07 (that’s over 1,000 employees affected)

*They have additionally released at least 50 Account Executives effective today 5/15/07.

*Many new hire Account Executives (i.e. – hired in past two to four months) were retained while many long-term, producing, successful AEs were released.

UPDATE:

From the National Mortgage News Online (h/t Matt, OC Register):

Wholesale subprime giant Option One Mortgage Corp. plans to close 12 mortgage processing offices and trim 600 workers by early September, industry sources have told MortgageWire. The company will also exit the bulk acquisition/flow correspondent market. At deadline time an Option One spokeswoman confirmed that cuts were under way, but stressed that the lender — slated for sale to hedge fund Cerberus Capital — will not exit any geographic areas. Of the 600 jobs that will be lost, 14% are in sales. Most of the job losses (66%) are in the production functions, the spokeswoman said.