Morgan Stanley Cuts Back Mortgage Business

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.