Morgan Stanley said it will cut roughly 500 staffers in the U.S. and about 100 employees in Europe, including 90 from the bank’s U.K. mortgage unit, as part of a reorganization.
The company has three mortgage businesses in the U.S. — Saxon Capital, which services and offers subprime loans through brokers; Morgan Stanley Credit Corp., a retail originator of prime loans; and Morgan Stanley Mortgage Capital Holdings, an aggregator of loans purchased from so-called correspondent lenders.
Under the reorganization, these units will now operate as one to originate, purchase and service a wide range of mortgage products, the bank explained.