By Jason Schwartz
Pink slips will be issued to 112 employees at the Boca Raton offices of Digital Risk, the nation’s largest provider of mortgage risk, compliance, and transaction management solutions, later this month, the Boca Raton Tribune has learned.
Fifty-six of those employees are fulltime and the rest are either part-time or have not been with the company for six months.
The sudden and widely reported uptick in interest rates ground new mortgage applications to a halt, a company spokesperson said.
“As a result, one of the company’s clients was forced to suddenly pull its origination business,” said Digital Risk spokeswoman Brandie Young. “The majority of the work was performed at the Boca location. This is a temporary adjustment to accommodate the loan origination services demand.”
The Maitland-based company, which Young said will have 135 employees in Boca Raton after the action, added the most jobs in the state in 2012.
The workers who are being let go have been told – a number of processors, analysts and underwriters – and their last day is Aug. 30.
All layoffs at the 5201 Congress Ave., Suite 250, facility will be permanent. No bumping or seniority rights exist, and no employees are represented by a union, according to a notice.
In June, Gov. Rick Scott celebrated Digital Risk’s job creation and highlighted the Florida Families First Budget, which doubles the annual funding available for the nationally recognized Quick Response Training program to $12 million.
Funding for the Quick Response Training program helped Digital Risk hire and train nearly 700 employees at its locations throughout Florida last year, said Peter Kassabov, CEO of Digital Risk.
“We are committed to building careers, not just jobs, which is why we invest more than $10,000 in training for each employee we hire, including the recent college graduates who are accepted into our FASTLANE accelerated training program,” Kassabov said. “Given the investment, the partial reimbursement offered through Quick Response Training is extremely valuable to us as an employer.”
Digital Risk expanded its Florida presence in 2009, adding more staff to its headquarters operations. Since then, the company also set up operations in Jacksonville. In total, Digital Risk has created more than 1,300 new jobs in Florida since 2009, according to the company’s website.
The projected growth that prompted Digital Risk’s continued expansion was driven by the mortgage market’s focus on making loans safe for borrowers, banks and taxpayers.
Digital Risk received $1 million from Gov. Rick Scott’s Quick Action Closing Fund to create 500 jobs statewide by 2017, Young said. The company also received $78,000 from Boca Raton. Palm Beach County has not yet given the company anything, officials said.
Still, Digital Risk is not in a financial bind, officials said.
The company does not require, nor has it requested financial assistance, Young said. As a wholly owned subsidiary of global corporation, MphasiS, Digital Risk remains quite stable and expects continued growth throughout the third and fourth quarters despite the change in the market, she added.
“This is not a financial matter, but rather one of right-sizing one segment of the company’s service offerings to accommodate current market fluctuations,” Young said. “The company expects/anticipates expansions in its other areas.”