We'll be moving our stuff tomorrow to the new office. As a commenter mentioned earlier, it would be a prudent idea to separate your personal belongings from your FNLC office materials when you pack your boxes. I have a feeling there will be several people who won't make it to the new building before getting laid off.
Some people have asked "how can we afford this?" Well, we've been "affording" this for several months already. The new offices have been a money pit, and every time the company needs to find some more cash, they do another round of layoffs. You can sense that moving into TRex is the only goal for certain members of the senior exec team. They figure that, if they are moving into new facilities, the company will appear to be successful and that they have done their job by "DOING WHAT IS REQUIRED." Unfortunately for these narrow-minded and myopic fools, most rational thinkers don't judge a company by their office buildings - they judge it by the amount of money it makes (or, in our case, loses).
Get ready for a deluge of self-congratulatory press releases about this move. It should be the last thing you hear about us until our rumoured sale in a couple of weeks. Afterwards, TRex becomes somebody else's problem.
Caveat Emptor.
Thursday, June 14, 2007
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24 comments:
I recently got a job offer from first NLC in the northeast region. The salary was 24,000 a year plus commissions and my recruiter told me that I should expect to make between 45,000 and 65,000 in the first year, he said that was the average. He also said that you should expect to work from 9:45 AM till around 7:00 PM. I want to know if this information is accurate and what the turnover rate is like for a first year loan officer, thank you.
I'm not a loan officer, but I can't imagine joining up with the company at this time - there is a very strong chance that we won't be here much longer.
I also don't believe that you will be making that much via commissions - we aren't selling anything!
Does this recruiter work for FNLC? They should know better.
Yes they do work for First NLC its actually the Lincoln, RI office branch manager that I interviewed with that told me all of this information. I understand the market is a problem right now for subprime loaning, but what I dont really understand is if First NLC goes under than who will be left in the sub prime loan market, or will these people simply be unable to get a mortgage?
Also in Rhode island subprime lending has gone up 14 percent thats the highest in the nation. Do you think that perhaps the reason why this branch is hiring is because maybe First NLC is planning on cutting much of the country out but remaining in few places?
Your guess is as good as mine. In my opinion, the entire subprime industry is a mess. There will ALWAYS be subprime mortgage applicants, but that doesn't mean they should be given loans.
The fault lies on both sides. Applicants falsely claim income they don't generate and agree to loans they know they cannot afford. The lenders only care about funding and will do whatever it takes to get a loan approved or else they'll lose it to the next mortgage company. The cycle continues until we're left with the current state of things.
I don't know much about what's going on in the RI market, but you should press the recruiter on what the short and long-term prospects are for the company.
Best case scenario is that we get sold in a couple of weeks and our future/organizational structure comes into question and remains uncertain. Worst-case scenario? It's all over in a matter of weeks.
Even if the RI market is excellent, that wouldn't be nearly enough to get the company back on track.
I just feel like the government may step in or something because this isnt like only your company who is struggling its the entire industry and people need to have homes so I dont really know if First NLC will go down but I know that they arent going to let the whole industry go under you know? Have there been any other sub prime lenders going under?
82, at last count.
Check out this site:
http://ml-implode.com/
I hear FBR is footing part of the bill for the new office. I also hear FBR will be moving some of their employees to the new location....probably to keep a closer eye on FNLC!
If FBR is still planning on offloading FNLC, why are some of their staff moving into TRex? There would be no reason for FBR's people to keep an eye on FNLC staff if the company was being sold. What am I missing?
I dont understand why any company with this drastic of a situation would be hiring if this were the case. Can you explain why this office recruited me and is accepting applications?
Why did the start a Correspondent division to have it fail once again in less than a year.
Five years earlier they could not figure it out. And learned nothing this go round either.
Just wasted a lot of people time. With a half-baked effort.
FBR does not need a closer eye on FNLC, unless they are actually going to enforce the corporate HR policies.
Otherwise they should keep doing what they have always have now. Turning the blind eye.
Matthew, the reason they are still hiring loan officers is that their entire business model is built on sales. They have very little to lose if you come on board - if you don't sell you're out the door. If you are a succesful salesperson, then they make $$ and you get your cut. It's a high churn business. What you need to decide is if you want to struggle at a company that has financial problems, obvious management handicaps, and from what is posted on this blog, a general lack of concern for their employees. All mortgage companies (especially subprime) are struggling right now, but some of them are in better financial shape than others. Go to Lendersimplode.com to see which firms are having a slightly better time than others. Mostly its the firms with A paper and Alt-A that are stronger. Then if you really want a career in mortgage sales, go to one of those firms. They will no doubt also be interested in hiring you, and they will treat you a whole lot better than this company will.
Does anyone really beleive that this sale will take place? I believed it 3 weeks ago when told that we should have a signed contract by the end of the 3rd week in May. That never happened. Then we were told it would be by the end of the following week. Again, it didn't happen. After the 3rd time we were told it would happen and didn't, I began to get the hint that maybe the buyer pulled out. But why anyone want to buy a company that lost it's current parent company $124 million last quarter alone?!
I tried to go to lendersimplode.com but it wasnt a real site then i went to mlimplode.com and that worked but first nlc wasnt on their site any help?
Matthew_Krevis
The companies who I believe will survive the next year and a half are companies who have great management, cash flow and were in the conforming or "A" paper market. These companies will not have as high of a foreclosure rate. According to the media millions of loans will be foreclosed on in the next year or two. The companies holding the paper will have a hard time trying to stay afloat.
An alternative is to work for a mortgage broker who has access to all types of paper and lenders. Since these types of companies do not hold paper but have access to all types of loan programs, most of them will be around. The main drawback is these jobs are strictly commission based. If you are great as sales, you should do well.
Another thing to consider before taking a job with First NLC: When accepting a sales type position not only are you at the mercy of the customer but you are also at the mercy of your coworkers which includes the loan processors, underwriters, etc. I believe people who work in positions where job uncertainy exists are not as dedicated as people who feel more secure. Plus many people at First NLC are looking for employment elsewhere.
Lets play devils advocate:
Say you took a job with First NLC and got several loans. You then turned your loans over to the processor. Three days before closing, the processor quits or is laid off, what are you going to tell your clients when the loans don't close on time. It will be your reputation that suffers with the client and the community, not the company, First NLC.
The website that you are looking for is mortgageimplode.com.
They may pay you $24k per year but they will expect you to call crappy leads 8 hours a day and charge 5 points on every deal. In my experience they also steered conforming borrowers towards subprime loans which I could not do in good conscience........
I understand what you saying but can is there anywhere that i can see a list of these good companies and see earnings and foreclosure ratings and anything else pertaining to the First NLC?
Some of the companies I like are Countrywide, 1st Naional Bank of Arizona, and Flagstar. I watch CNBC and every week this station discusses the housing market and lenders. You might want to check their website under news cnbc.com.
Why do you want to work in this market? I personally would contact a couple of the local mortgage brokers in your area and ask them who they fund there loans through. Talking to these people will give you a feel for who is good and who is not worth being employed by.
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Dear Colleagues –
This recent chapter of our organization has been a very difficult one to say the least. In the wake of very challenging times for our industry, we have not been immune. As short term interest rates and the yield curve have been working against us for a prolonged period of time, we have faced many complex and arduous decisions. We have made all of these decisions with the dual focus on our most valuable asset – our people - and the ongoing viability of our organization. Today we have several important announcements to share with you in that vein.
First, as you are aware, at the end of last year we announced that we would be moving our headquarters to a new location in Boca Raton. At that time, we committed to the new space with the hope and belief that by now the economic turmoil in our industry would have calmed and we would be in a stronger position. In preparation for this move and to realize better operational efficiencies, we closed our Ops Centers in Orange, Chicago, Tampa, Kansas City and Concord. These changes have resulted in all mortgage functions being centralized in either Boca Raton, Florida or Anaheim, California. We believe that this was a necessary move for our organization and that it will help us achieve better operational efficiencies going forward. Please know that we are constantly looking for ways to further reduce our facilities costs through subleasing of unused space and other means. Our move to Boca will take place this weekend and we look forward to beginning a new chapter in our new location.
Second and most difficult is that given the continuation of this most challenging environment, we have made the difficult decision to further reduce our operational costs by conducting a reduction in force (RIF) that will impact approximately 8% of our workforce. The groups that were impacted included mostly back-office and support units.
While we never take the loss of jobs lightly, this round has been most difficult for me and our executive team as many of the employees who were impacted had stuck with us and proved themselves diligent and talented professionals through this difficult time. We certainly wish them well in their future endeavors and hope that someday our paths may cross and we have the opportunity to be colleagues again. Albeit painful, we do strongly believe that this takes us to an optimal size for this market environment and will be the last such move we will make.
Finally, I do want to address some of the concerns that have been expressed by employees, brokers and the media over the last few months. FNLC continues to be a strong mortgage company. We have maintained all the necessary functions to conduct every aspect of our business – retail and wholesale - on an ongoing basis and that continues to be our priority. Additionally, we have recently introduced our new FIRSTQUAL loan engine which allows us to better serve and respond to our wholesale broker network and retail loan officers. While many of the other firms in our space no longer exist or have changed their business focus completely, we are still here, still enhancing our products and services, and still a competitive force in this industry. As you know, we recently revamped our guidelines to compete with the wall street-backed originators and the early results are showing that we are competitive in both rates and program guidelines. Volume has already picked up and because of the efforts of our staff, we remain on 24 hour turn time for all approvals.
You are all aware of the announcement this spring by our parent company, FBR Group, regarding their exploration of strategic alternatives for First NLC including a possible sale or recapitalization. This effort is ongoing and is a positive step for us. The management team at FBR Group remains committed to achieving an alternative that will be supportive of First NLC as an ongoing business. We are confident that everyone has our best interest in mind throughout this process. I do believe that whichever of the possible positive outcomes prevail, First NLC will be well positioned for success and a market leader once again in the future.
I encourage each of you to talk to your managers and to the executive team. Ask questions. Share your ideas. Discuss the game plan with your groups. Think about how you as a professional and as a team member can move forward though these changes.
Having been in this business for more than 30 years I can honestly say that I have never seen a group so talented, so resilient and so poised for future success. I want to thank all of you for your commitment, professionalism, dedication and hard work. You have all made significant contributions to our organization and to our culture and I applaud your efforts. I am very confident that we have many long and successful chapters ahead of us - together.
Sincerely,
Neal Henschel
Another reduction in force? One can only wonder that if they had not got the lease for the new building and instead stayed in the existing Deerfield location, perhaps the cost savings alone may have saved this 8% that are losing their jobs today. I predict that last paragraph Mr. Henschel wrote will once again be quoted when they publish their final announcement that they are closing their doors once and for all.
My comments are addressed to Neal Henschel:
In the first paragraph you state, "short term interest rates and yield curve have been working against us" when in my opinion I believe greed, bad loans, and bad management are the true reasons why your company has been force to downsize. Programs such as the option arm and the 1% interest only offered to consumers who have spotty credit is the reason companies like yours are in the posiion that you are in and it was all about lining your pockets with more money. Why don't you write a letter to the people who you sold these product to apologizing for their homes being forclosed on. You profited off these people and now they are losing their homes because they cannot afford their mortgage payments.
Then you go on to say, "our most valuable asset - our people". There is no way you will convince me that your management team truly believes people are a valuable asset. If you truly believed that, you firm would not be force to defend themselves against all the employee based lawsuits. I think you have been taught to use that phrase thinking that if you say it people will believe you. Actions speak louder than words.
At the end of last year, your organization knew it was in financial difficulty. When the accountant turned over the quarterly figures for September and December anyone with a brain would be cutting expenses not announcing the plans to take on more expenses by announcing "that we would be moving our headquarters to a new location in Boca Raton".
In my opinion, if volume has picked up, your company would not have a 24 hour turnaround time. I work as a broker in the industry and the companies who are really busy have a three day turnaround time.
I do not know how you can think that the sale of your organization is "a positive step for us". FBR announced the possible sale of First NLC around the same time they announced their first quarter results. In my opinion, the reason FBR wants to sell First NLC is due to the tremendous amount of money they are losing because of managements poor decisionmaking and greed.
As a broker in the industry, your firm is the last place I would place a loan. I would hate to miss a closing because your "laid off" your valuable resource.
Disney World is a place for fantasy and I believe so is the executive wing of TRex. Maybe you should step outside your executive office suite and face the facts that you and your team are truly resonsible for the downfall of FNLC and the people who need to be laid off is yourselves . . . then maybe somebody like Lee Iocca can step in and save the company. With you and your family at the helm, it is only a matter of time before the doors are closed on your fantasy world and you realize the people who you kicked to the curb in order to have that fabulous office were truly more important to the organization.
As I stated I work in the industry and I refused to sell any program that is not in my client's best interest. I will work with a client to help him/her fix their credit before I will make a dime off of a bad product. I will not line my pockets and then blame someone else or something else for the consequences.
Neal, how do you and your family sleep at night? Do you feel any sadness or remorse for the pain you have brought on to all the people who have been laid off or to the families whose houses are being forclosed on because of your "crappy" products? Do you feel any remorse for the bad management you have hired who overworked the employees and forgot to pay them for the extra hours they were force to give to the company and that were taken away from their families? Do you think of this when you spend quality time with your children? Do you feel sorry for the employees who were subjected to verbal and mental abuse and/or sexual harassment? Exactly what is your definition of "valued", curious minds want to know?
My comment is more of a question: Has FBR found a buyer for First NLC and if not, do you see bankruptcy being filed in the next few weeks?
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