Durham County News

IBM to lay off more than 300 Durham employees

DURHAM, N.C. (WNCN) — More than 300 IBM employees are set to lose their jobs by March, according to a document filed with the North Carolina Department of Commerce.

The document, which served notice of the layoffs on Wednesday, shows that 310 employees of Seterus, Inc., which is a subsidiary of IBM, will be laid off beginning March 11.

The company, which is located at 3039 Cornwallis Road in Durham, is permanently closing, according to the filing.

According to the Seterus, Inc. website, the company is "one of the nation's leading specialty loan servicing companies."

The layoffs come just eight days after IBM agreed to sell Seterus to the Mr. Cooper Group.

According to a notice on IBM's website announcing the sale, "IBM acquired the Seterus mortgage servicing business in the wake of the 2008 financial crisis to help a client manage a broad mortgage portfolio, including high risk loans.  IBM was successful in the mortgage servicing work, and the portfolio is now much more stable.  The time is now right to divest this business to a mortgage servicing specialist, whose domain-specific expertise and scale can further advance this business."

The agreement between IBM and Mr. Cooper Group was a $48 billion servicing transaction, according to a release from Mr. Cooper Group.

They acquired "servicing rights underlying $24 billion in GSE mortgages, enter into a subservicing contract for an additional $24 billion in mortgages, and purchase the Seterus mortgage servicing platform and assume certain assets related thereto from IBM."

Jay Bray, chairman and CEO of Mr. Cooper Group, said in the release that the company is "excited to welcome more than 300,000 customers and the Seterus team to the Mr. Cooper Group family. We are confident our new team will be energized by our people-first culture, and our new customers will benefit from our user-friendly mobile and online tools designed to help them manage their home finances."

The layoffs will begin no earlier than March 11, state filing documents show.

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