Mortgage fintech Tomo cuts nearly a third of its workforce

Abstract

Lending fintech Tomo Networks cut nearly a third of its workforce Tuesday and will dial back its expansion plans, the company confirmed Wednesday. It's the latest mortgage fintech to undertake layoffs and the most recent lender to cite rising interest rates and reduced volume for downsizing. "While we explicitly don't offer refinance mortgages because of the risky boom and bust cycle, we've still been impacted by the rapid rise in interest rates that has reduced purchase mortgage margins," said CEO and co-founder Greg Schwartz in a LinkedIn post Tuesday. Former Zillow executives Carey Armstrong and Schwartz founded Tomo in 2020 and raised $70 million in seed funding last June. The company joins the growing list of mortgage firms small and large that have undertaken job cuts since the beginning of the year. Digital lender Better.com and mortgage technology firm Blend have laid off workers in the past two months while massive players Rocket Cos. Wells Fargo also have let mortgage employees go.