Watching the CNBC on Wednesday morning I saw the new Ditech Ad about the new transparent process they are trying to demonstrate to consumers. The clear glass cubes in the call center and the friendly rep on the phone with customers. Looks great. Then the news flash happens and hits the wires two hours later. RES CAP – GMAC/Residential Capital Corp. just shut down most of the mortgage divisions of the company and lays off 5000 employees.
Ditech, which is owned by GMAC, is the only direct lending division of the company to stay open. They closed all 200 of its GMAC Mortgage retail offices and cease origination’s through the Homecomings wholesale broker channel. In addition, the only other division of the company to stay open is the small correspondent division according to a press statement.
The decision to exit wholesale and retail lending will cost 5,000 employees their jobs, or 60 percent of the company’s workforce. Approximately 3,000 employees will receive notification this month with the majority of the remaining 2,000 reductions expected to occur by year-end, ResCap officials said.
Should consumers who are looking for a lender be worried about the future health of the overall company? Would it change your mind on using Ditech if you knew they just let go 5,000 people and are going to restructure the whole company? Should the health of the rest of the company make a difference if you were getting the best rate and terms on the mortgage offer?
Maybe the furniture industry could teach a new sales plan to mortgage companies. Going out of business sale – Everything must go! Get the best deal before we close our doors.
This might appeal to some who only want to get the best deal for their mortgage. But would you want to give all of your personal contact information, SSI Number, Assets Statements and employment information to a company that may close? I assume most consumers wouldn’t know that Ditech just laid off 5,000 people. But, to be fair to the consumer, they should let you know the health of the company before they put their earnest money deposit in jeopardy?
Really how transparent is the commercial if they don’t tell you that we have just laid off 5,000 employees?
Source: zillow.com