Finance of America posted steep losses in the second quarter and has pledged to eliminate a significant percentage of its workforce to contain the financial fallout.

As with other lenders seeing huge declines in mortgage origination volume, Finance of America’s traditional mortgage business took a hit due to tumbling refinance volumes and an increase in spreads on both non-agency and agency mortgage products, which resulted in revenue reductions. 

The traditional mortgage business notched $4.23 billion in funded volume in the first quarter, down 17% quarter over quarter and 39% year over year. Refinance volume dropped 64% between the details ⇒

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