Hudson Valley Company Files Bankruptcy, 233 Employees Laid Off
After filing for bankruptcy, a Hudson Valley business laid off 233 local employees just weeks before Christmas.
It's the worst news you can imagine at the worst possible time. Last week 233 Hudson Valley employees found out that they were losing their job just as holiday bills have begun to pile up.
The announcement was made last Tuesday that a Newburgh company would be letting their employees go after filing for Chapter 11 bankruptcy. According to National Mortgage Professional, Reverse Mortgage Funding LLC laid off 80% of its workers. Paperwork filed with the State of New York shows that 233 of those employees have been let go from the company's Newburgh location.
Ironically, RMF is one of the nation's leading lenders of reverse mortgages which are sold as a way for people to stay out of debt. The company says they are filing for bankruptcy because it can no longer pay its creditors.
The company blames several current trends such as interest rate hikes, credit spread widening and volatility in the fixed income markets for their inability to finance new loans or pay off its creditors.
The company is located at 700 Corporate Boulevard in Newburgh, which is in a huge corporate park off Route 17K. The layoffs of over 200 employees is a blow to the local economy at a time when inflation has already made it harder for local families to make ends meet.
Sources say the company is not closing but has let over 500 employees go nationally. With 200 of those layoffs happening locally, it's unclear if the Newburgh location will still remain open.
Four Hudson Valley Companies Among Fastest Growing in Country
The 5 Friendliest Businesses in the Hudson Valley