Sacramento loan company bought out, to lay off 163 employees in Arden Arcade
A Sacramento area-based mortgage company is laying off more than 150 employees as the business begins to go on sale, according to a WARN notice issued on March 19.
Summit Funding, at 2135 Butano Drive in Arden Arcade, will terminate 163 workers, the business’s WARN letter said.
The loan company was purchased by Cross Country Mortgage, according to an announcement on March 18.
Summit Funding specializes in personal or household loans. The loans can be used for payments on a mortgage and have lower interest rates, according to the Office of the Comptroller of the Currency.
In the WARN notice, Todd Scrima, the CEO of Summit Funding, wrote employees may receive “separate communications” from CrossCountry Mortgage about other employment opportunities.
The layoffs eliminate positions across the company including accounting, loan servicing, underwriting and executive positions like the chief operating officer.
Summit Funding is licensed in 48 states and is one of the “top 35 retail lenders in the nation,” according to CrossCountry Mortgage.
CrossCountry Mortgage’s CEO Ron Leonhardt said in a statement that buying Summit Funding is a partnership, calling it a chance to “give (their) team access to more tools, greater opportunities and increased earning potential.”
“Our number one focus over the last few years has been to build a company where the best talent in the industry wants to come to work,” Leonhardt said in a statement. “Summit Funding has a reputation for high-performance teams and has a great group of talented originators. This is exciting for both of our companies.”
The layoffs take effect May 17.
