Freedom Mortgage Corp. to Close San Dimas Call Center, Cut 171 Jobs

Freedom Mortgage Corp. to Close San Dimas Call Center, Cutting 171 Jobs

In a surprising move, Freedom Mortgage Corp. has announced that it will no longer be using California workers to service its mortgages. This decision will result in the closure of its San Dimas call center and the cutting of 171 jobs.

Employees at the call center were informed of the pending layoffs in mid-February, with the separations set to begin on June 1 and spread out over the month. Despite hopes for good news during a visit from corporate officials, the staff was instead told that their jobs were being eliminated.

The reason cited for the closure was the cost of doing business in California, although no further specifics were provided. No severance packages or opportunities to relocate were offered to the affected employees.

While Freedom Mortgage will continue to originate and service mortgages for California homeowners, the servicing will now be done at other locations. The San Dimas call center, located at 620 West Covina Blvd., is the company’s only West Coast office.

This decision comes on the heels of Freedom Mortgage’s recent acquisitions of RoundPoint Mortgage Servicing Corp. and J.G. Wentworth Home Lending. It is unclear whether these acquisitions played a role in the company’s choice to leave San Dimas and transfer mortgage servicing to former RoundPoint offices.

Freedom Mortgage has faced scrutiny from federal regulators in the past, including a $113 million fine in 2016 for originating and underwriting loans that did not meet government standards. In 2019, the company was fined $1.75 million for reporting inaccurate information about lenders’ race, ethnicity, and sex.

The closure of the San Dimas call center marks a significant change for Freedom Mortgage and its employees, as well as for the California workers who will be impacted by the decision.