Provident Financial abandons mortgage banking

Plans to layoff 122 staffers in the coming months

Provident Financial Holdings announced its exit from mortgage banking earlier this week.

In a released statement the firm said challenging economic and operating conditions made it difficult to make a profit in home loan originations. The company’s CEO also cited “required investments in expensive technology” as another reason.

The company plans to layoff 122 full-time-equivalent employees, presumably working in the now-abandoned Provident Bank Mortgage brand, in the coming months, though it will not exit the mortgage lending industry entirely. PBM will be retired by the end of June.

“The company plans to continue to originate single-family mortgage loans for retention on its balance sheet, both within its market area, the Inland Empire region of Southern California and other locations in California,” the statement said. “Also, the company will continue to purchase these loans consistent with its historical activity.”

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