As we begin this New Year with a renewed hope, regrettably, there remains the solemn reality that over the past year market conditions have had a profound impact on our industry and our company.
The support of Deutsche Bank has allowed MortgageIT to weather this turbulent market and pursue a revised business model. We have been working hard to determine how MortgageIT and its products best compliment the needs of Deutsche Bank and the demands of the current market.
We have decided that the best course of action is to continue our commitment to a wholesale mortgage lending platform. We see significant opportunities, particularly in areas such as government loan origination. However, our cost structure and decentralized operating model are no longer sustainable.
Working with Keith Bilodeau, Head of Wholesale Origination, the management team in New York and Deutsche Bank executives, we have developed a plan that attempts to capitalize on our strengths while making the needed revisions to our production and operation platforms. This plan will rely on a modest sized team of account executives, reporting to regional managers, spread throughout the country. We expect to retain a handful of sales offices which will provide a local presence and house operations and support expertise. The sales team will cover key markets in the country where our loan quality has been best, and the prospects for our business model are the strongest.
In order to transition to this revised business model, beginning in the next few weeks, we will be closing most of our production branch offices and migrating production fulfillment to our branch in Madison, Wisconsin. Over the next few days, branch employees will be notified of the specific plans for their office and the timeline for an orderly transfer of any loans in process to Madison.
As part of this plan, we will continue to maintain certain post closing and quality control functions in our Jacksonville, Florida location in the near term and, as the year progresses, determine where best to locate these functions. In addition, as we work through this transition, we will assess the impact of this plan on the administration functions throughout our company.
This was a difficult decision to make, but a necessary one. It is our hope that by taking these actions we will be properly positioned to participate and prevail when current market conditions abate.
Doug Naidus
The ones who stay will sell government loans.
But what about the killer severance? the Chocolate...
screwedntatooed wrote:
Deutsche bank will be feeling the crushing weight of a possible legal action lawsuit if they do not pay out the severance benefits that are stated in the Severance Pay Plan for MortgageIT's employees. As of this morning DB is stating that the payout will be that of MortgageIT's plan. However, effective January 1st 2008 all MortgageIT's employees fell under DB's benefits. The severance pay out plan located on the benefits site clearly states 3 weeks of every year of service, minimum of 12 weeks maximum of 52 weeks. Last amended date 08-01-06. There is no mention throughout the 13 page document that employees of MortgageIT would be excluded from this payout. This document is still readable in DB's Your Benefits Resources website under benefits manual.
This morning, MortgageIT's employees received an email from John Novak, Director, Global Banking HR with an attachment referencing the severance policy. LOW-AND-BEHOLD there is a NEW paragraph added stating: Employees of dbhomelending, LLC, MortgageIT, Inc, and Urbistar, Inc shall not be eligible under these benefits....blah, blah, blah. It also came with a revision date of March 22, 2007.
DB should know better than to insult the intelligence of MortgageIT's employees with this lame attempt to justify a lower severance payout.
I have been laid off by some very large companies in my day. Indymac and Wells Fargo to name a few. I can tell you that both times I have been treated with respect and concern.
MORTGAGEIT on the other hand has not come out from behind Mommy's apron strings to talk to us. Senior management (yes that means you Keith and Doug) had done their best to hide behind their emails and "Corporate Communications" To this day, we believe our last day is January 31st, however no one has come out and told us. No one is talking about how we are to handle the equipment and furniture that will remaim in the office. Just one conference call to instruct us to send all files out by January 25th.
We are assuming that someone will have the balls to come face us on the 31st, but then again who knows. We are all adults, we have been reading the writing on the walls for sometime.
KEITH...DOUG.....have a little respect, and provide us with the necessary information so that we can all move on with our lives. You have already screwed us with the severence, and if there is a lawsuit, I will be in it for sure.
MAN UP.....DO THE RIGHT THING............SPEAK.........COMMUNICATE.........BE A PROFESSIONAL!!!
That is all we are asking for!!!!!!!!!!!!
In my career, which is quite considerable, I have never, ever, seen such a lack of respect for the employees as is being demonstrated by the Senior Management of MortgageIT and Deutsche Bank.
I trust you will find your rewards in the golden parachutes you will be receiving when the company finally does fold.
But you, you cowards, should know, that the people that do the work, the heavy lifting, and do not have the golden parachutes, will remember that they were screwed by a company that turned its back on them when they needed that company the most.
Enjoy yourselves, and say hello to Satan for us all when you drop.
icenvegas Schumpeter Reincarnate
Joined: 22 Nov 2007
Posts: 3861
Location: Las Vegas
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