Summit Funding To Lay Off Staff Amid Ccm Deal

A group of employees at Summit Funding, most of them in back-office roles, are being laid off but may receive job offers from CrossCountry Mortgage (CCM) as part of the companies’ pending M&A deal, according to filings with California authorities.

Cleveland-based CCM agreed last week to acquire Sacramento-based Summit Funding, a move that expands its geographic footprint. Financial terms of the transaction were not disclosed. 

In total, 163 employees are expected to have a termination date of May 17. The workers do not have bumping rights and are not represented by a union, but they will receive rapid-response orientation and reemployment assistance.

A spokesperson for CCM declined to comment when reached by HousingWire.

“The reason for this permanent layoff is the pending sale of the business,” Summit CEO and president Todd Scrima wrote to state authorities in a worker adjustment and retraining notification (WARN) announcement.

“Employees may receive separate communications from the purchasing entity regarding potential employment opportunities, including positions that may be comparable to their current roles. Any such employment would be with the purchasing entity and not Summit Funding, Inc., and does not alter this notice.”

Summit said the layoffs will not result in the closure of its Sacramento headquarters.

Affected employees span multiple departments, including appraisal, closing, compliance, IT, legal, loan servicing, processing, secondary markets and underwriting. The executive team was also impacted, including chief information officer John-David Phelps, chief operating officer Kris Ringrose, and executive vice presidents in capital markets and finance.

Over the past 12 months, CCM originated about $50.5 billion in mortgage volume, while Summit produced roughly $1.2 billion, according to mortgage technology platform RETR.

CCM had 4,592 sponsored loan officers across 777 active branches when it announced the deal on March 18, according to the Nationwide Multistate Licensing System. Summit had 168 sponsored loan officers in 45 branches at the time. As of Wednesday afternoon, CCM’s count had increased to 4,641, while Summit’s had declined to 94.

CCM’s recent originations have been concentrated in California, Florida and New Jersey, while Summit’s production has primarily come from California, Oregon, Tennessee and Texas.