Plano-based First Guaranty Mortgage Corp. laid off the majority of its staff on Friday.
The mortgage lender terminated 428 of its 565 employees who work for its Plano office, according to a notice the company provided to the Texas Workforce Commission. Some of those employees work remotely from out of state, according to the letter.
The notice said the layoffs were caused by “significant operating losses and cash flow challenges due to unforeseen historical adverse market conditions for the mortgage lending industry, including unanticipated market volatility.”
Additionally, the notice said recent efforts to obtain funding that could have prevented the layoff have been unsuccessful.