The head of Pontiac-based United Shore Financial Services said Thursday that there will be no layoffs at the mortgage lender, although many Michigan companies implement layoffs or layoffs in response to the economic fallout from the coronavirus pandemic.
President and CEO Mat Ishbia said in an employee conference call that while it is almost inevitable that there will be an economic downturn at least in the coming months, United Shore will not lay off any of its 5,800 employees.
“There are no layoffs,” Ishbia said. “I’ll sleep on your couch before I fire someone. If this month sucks and next month sucks, I don’t care. It’s tough, but nobody loses their jobs. ”
He said he doesn’t know what the economic downturn will be like, but said the business could decline by as much as 50% -80%.
The announcement comes as the coronavirus pandemic has stopped the US economy and millions of Americans have filed for unemployment. Mortgage lenders are particularly exposed because they typically have to advance planned mortgage payments to investors, regardless of whether borrowers make actual payments due, possibly leading to a cash crunch.
The promise of no firing came hours after the The Federal Reserve announced $ 2.3 trillion in loans to families and employers. The Mortgage Bankers Association, an industry group, recently warned the Department of the Treasury and the Federal Reserve that if a quarter of borrowers stop making payments or delay those payments for six months or more, mortgage companies could be at stake for $ 100 billion.
Contact: Adrienne Roberts at [email protected]