Cenlar to shutter Missouri office

Cenlar FSB, the second-largest U.S. subservicer, will close its facility in O’Fallon, Missouri, resulting in the termination of 93 employees, according to documents sent to state officials.

The layoffs will affect a range of roles, including 13 loss mitigation advocates, 11 MSP collections professionals and ten customer assistance specialists. Staff across all levels — including trainers, coordinators, managers and directors — are impacted.

“There will be a total closure of Cenlar’s facility” on October 31, wrote Kimberly Matthews, senior vice president of Human Resources, in a notice to the Missouri Department of Higher Education & Workforce Development.

Employees were notified of the layoffs on May 20, with separations expected to begin on July 22. Affected workers do not have bumping rights and are not represented by a union.

In a statement to HousingWire, a spokesperson for Cenlar said the company “has made the difficult decision to close” the office.

“While these situations are never easy, the closure of this location ensures we can fully focus our efforts on our other offices and position the company for continued long-term success. Cenlar remains committed to growing our subservicing business and driving positive outcomes for our clients and their homeowners.”

Cenlar managed a $728 billion subservicing portfolio as of March 31, down 1.8% from the previous quarter and 9% year over year. Its main competitor,  Mr. Cooper Group — which recently agreed to be acquired by Rocket Companies for $9.4 billion — had a $780 billion subservicing book during the same period, down 5% quarter over quarter but up 54% annually.

The subservicing sector, which includes managing mortgage payments, borrower communications, and escrow accounts for lenders, has seen major consolidation. As a result, firms and their clients are repositioning.

Tom Donatacci, chief client officer at Cenlar, said in a recent interview that M&A transactions, as an example the Mr. Cooper and Rocket, “is driving some of the movement in the industry and creating opportunity for other subservicers.”