North Liberty-based GreenState Credit Union said it had instituted a reduction in force, effective immediately, that eliminated the positions of 42 employees across the organization.
Citing a decreased demands for loans, Jim Kelly, the credit union’s chief marketing officer, said in an email to The Gazette Thursday that most of the workers effected were “in the mortgage lending or commercial banking divisions.”
He noted that was ”less than 5 percent of GreenState’s current workforce.“
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“This action was necessary due to the market corrections currently taking place that have a direct impact on GreenState’s operations,” Kelly wrote.
“The employees impacted by this move have been given a severance package, as well as extended insurance coverage.”
After a July increase by the Federal Reserve, national interest rates today are at a range of 2.25 percent to 2.5 percent. The Fed has indicated another hike will come later this month, possibly as much as 0.75 percent.
As a result, the average rate for a 30-year-fixed mortgage rates nationwide has climbed to slightly over 6 percent. Applications for mortgages have dropped in response.
Kelly added the staffing action was unrelated to GreenState's decision last month to drop plans to buy Premier Bank in Omaha, Neb.
Regulatory opposition was given at the time as the reason for ending the proposed acquisition, according to American Banker.
www.thegazette.com
Citing a decreased demands for loans, Jim Kelly, the credit union’s chief marketing officer, said in an email to The Gazette Thursday that most of the workers effected were “in the mortgage lending or commercial banking divisions.”
He noted that was ”less than 5 percent of GreenState’s current workforce.“
Advertisement
“This action was necessary due to the market corrections currently taking place that have a direct impact on GreenState’s operations,” Kelly wrote.
“The employees impacted by this move have been given a severance package, as well as extended insurance coverage.”
After a July increase by the Federal Reserve, national interest rates today are at a range of 2.25 percent to 2.5 percent. The Fed has indicated another hike will come later this month, possibly as much as 0.75 percent.
As a result, the average rate for a 30-year-fixed mortgage rates nationwide has climbed to slightly over 6 percent. Applications for mortgages have dropped in response.
Kelly added the staffing action was unrelated to GreenState's decision last month to drop plans to buy Premier Bank in Omaha, Neb.
Regulatory opposition was given at the time as the reason for ending the proposed acquisition, according to American Banker.
GreenState Credit Union cuts 42 jobs
North Liberty-based GreenState Credit Union said it had instituted a reduction in force, effective immediately, that eliminated the positions of 42 employees across the organization.
www.thegazette.com
