Mortgage Firm Closes Office in Newport Beach

The 16-member Newport Beach office of North American Mortgage Co. was closed this week and its workers laid off as part of a reorganization by the Houston-based firm.

Altogether, North American Mortgage laid off 110 employees this week as the firm shifted its focus to the Texas market. In addition to closing the Newport Beach office, North American shut down its operations in Atlanta and Falls Church, Va.

In addition, about 10 of 38 employees have been laid off at the firm’s Riverside office over the last few months because of a general slowdown in mortgage banking business, said Thomas Eggebrecht, the firm’s chief operating officer. He said there are no plans to shut down the Riverside office, which sells mortgages directly to home buyers.

The Newport Beach office, which sold mortgages through brokers and other agents, opened 14 months ago, said Melissa Armstrong, the Newport Beach operations manager.

“It was very surprising to us because we were under the impression we were making a profit,” Armstrong said. “We had no idea this was going to happen, but in mortgage banking, that’s the nature of the beast. Headhunters were calling us immediately looking to place our people elsewhere.”

In the last 8 years, North American has been the largest mortgage lender in Houston, Eggebrecht said. The company decided to concentrate its efforts in Texas because it believes that the real estate market there is on the rebound, he said. The firm also maintains two offices in Florida.

The latest layoffs leave North American with about 550 employees, he said. In January, the company laid off 170 employees nationwide. Eggebrecht said no more layoffs are expected.

The company is owned by Mutual Life Insurance Co. of New York.