Real estate valuations and platform technology provider Clear Capital laid off 27% of its workforce, citing reduced business associated with the mortgage market’s descent.
The Reno, Nevada-based firm didn’t specify how many of its over 1,400 employees across its four brands were impacted or when the cuts would occur. A Worker Adjustment and Retraining Notification in California indicated at least 108 layoffs at one Sacramento-area office in mid-December.
The move was first reported by TechCrunch.
“Clear Capital is restructuring all company divisions to reduce expenses and support our future business strategy amidst today’s housing market reality,” said CEO Duane Andrews in a statement. “This will allow us to refocus the business on key areas and ensure we are on track for sustainable growth.”
The rising interest rate environment has led to a significant decrease in customer volume, Andrews said. The statement said Clear Capital is working closely with employees during the transition, but a spokesperson didn’t say whether employees were offered severance and/or extended health benefits.
The company offers home equity and appraisal products alongside its valuation services and includes appraisal firm Clario, floor planning software CubiCasa, and real estate professional search service REO Network. Clear Capital claims to have completed over 235,000 data collections for mortgages utilizing various government-sponsored enterprise modern appraisal programs.
Permanent layoffs include 108 workers in the company’s Roseville, California office, effective Dec. 16, according to a WARN it filed last week. The company will also close its Truckee, California office, it said during a meeting with employees last week, TechCrunch reported. The firm counts the three offices between Sacramento and Reno and a Bloomington, Minnesota presence just south of Minneapolis. No additional WARN reports from Clear Capital were filed in Minnesota or Nevada as of Monday morning.
Clear Capital joins a growing list of firms cutting costs including payroll in response to the mortgage market’s downswing. Mortgage activity is down nearly 70% since the same time last year, and mortgage rates are on the cusp of 7%. Nonbank mortgage jobs as of August are on a four-month slide, although brokers exiting retail channels are finding opportunities with leading wholesale players.