Grand Rapids-based Northpointe Bank filed a WARN notice impacting 338 jobs listed as “permanent layoffs” at its locations in Kent and Clinton counties.
The cuts follow a restructuring deal to sell Northpointe’s mortgage origination channels to CMG Financial.
Company leaders addressed the transition during their late-October earnings reports.
Chairman and CEO Chuck Williams stated, ““Given today’s economic and operating environment, and the continued evolution of the mortgage distribution channels, we are refocusing our strategic priorities where we have the strongest competitive advantages.”
CMG Financial is expected to hire most of the affected production and mortgage teams, while Northpointe leaders will provide compensation, healthcare and severance packages for those who don’t make the move.
The bank has allocated up to $7 million to cover those transition costs.
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