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Edeus to cut 50 jobs as it stops lending

Edeus has confirmed it will be temporarily withdrawing from originating new mortgage loans and has cut 50 jobs as a result of the decision.

This comes after Edeus chief executive Michael Bolton revealed to Money Marketing last week that it has reengineered itself as an “asset management” servicing business.

At the time, Bolton admitted it was deciding on whether it would look to temporarily withdraw from the mortgage origination market.

Edeus says it will return when it becomes commercially attractive to re-enter.

It will continue to actively trade and service its back book of mortgage assets.

All pipeline cases will be honoured and the exact date for receipt of new applications will be communicated shortly.

The job cuts will mainly effect the sales and marketing departments.

All people affected have entered a 30 day consultation period, and the senior management of edeus is committed to supporting its people through this difficult period.

Bolton says: “This is an unprecedented time for our industry and at present it is not commercially viable for edeus to originate new loans.  However the growing market for due diligence services and asset quality assessment is an area where edeus’s award winning technology and people can add considerable value.”

Managing director Alan Cleary adds ‘It is very sad that some very loyal colleagues may be leaving edeus but current market conditions dictate that we take decisive action to protect the long term future of the business.’

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