Subprime Mortgage Lenders Lay Off Hundreds

Two subprime mortgage lenders have announced layoffs of several hundred of its employees.

NovaStar Financial Inc. announced a 17 percent reduction of its 2,000-strong work force, which equates to about 350 people in Missouri, California, and Ohio. To read more, see NovaStar will cut work force 17 percent (The subprime lender reacts to the downturn of mortgage market) (The Kansas City Star)

Argent Mortgage Co. has announced the close of its local shop in White Plains, New York and has resulted in layoffs estimated at between 400 and 600 of its employees, who reportedly learned of their fate via e-mail. Shortly after the announcement, the workers were asked to leave the premises, with extra security looking on. To read more, see When mortgage workers are axed; watch your back (The Journal News).

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