Ocwen Financial: 238 to be laid off next year in Waterloo - KWWL - Eastern Iowa Breaking News, Weather, Closings

Ocwen Financial: 238 to be laid off next year in Waterloo

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WATERLOO (KWWL) -

Hundreds of people will be without a job next year as a major Waterloo employer has announced layoffs.

Ocwen Financial -- the company that purchased GMAC Res-Cap's holdings last year -- will lay off 238 people next year.

"After a long and thorough review of current and projected staffing needs, we have made the difficult decision to reduce staffing levels in several locations," the company announced in a statement released Tuesday morning. "Those employees who are affected by the decision are being advised today."

The layoffs will happen between January and July of 2014, the company said, noting that 629 people will remain employed in the Waterloo facility.

A spokesman for Ocwen said no employee was immediately impacted by Tuesday's announcement and more than half of the 238 employees who will be laid off have end dates in May of 2014.

According to the spokesman, the impacted employees will be paid a minimum of 60 days and they will be eligible for a severance package as well as assistance in finding a new job.

"Ocwen remains grateful to all of our employees, including those affected by this decision, for their hard work and valuable contribution, and we maintain our commitment to the communities in which we operate," the company added in the statement. "And we continue to focus on providing solutions designed to benefit homeowners experiencing financial distress as well as the investors who own their loans."

Ocwen is headquartered in Dunwoody, Ga., and provides residential and commercial mortgage loan servicing.

A spokesman for Ocwen told KWWL Tuesday afternoon he is confident the company is filing "whatever is required of them."

Kerry Koonce of the Iowa Workforce Development told KWWL that Ocwen filed paperwork for the layoffs late Tuesday afternoon.

Koonce said under the Worker Adjustment and Retraining Notification Act (WARN), state guidelines require a 60-day notification for layoffs impacting more than 25 people, and federal law requires notification for layoffs impacting more than 50 people.

She said if the company lays off employees in increments of 25 people or less, it would not have to follow the WARN guidelines.

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