Major Mortgage-Lender Slashes 70% Of Workforce, Warns "World Has Dramatically Changed" Major Mortgage-Lender Slashes 70% Of Workforce, Warns "World Has Dramatically Changed" Earlier this week, we highlighted the fact that numerous mortgage-related companies were facing considerable - and in some cases existential - crises in their day-to-day operations amid margin calls, illiquidity, and a drying up of demand for non-agency products thanks to The Fed's intervention. First , its was AG Mortgage Investment Trust which last Friday said it failed to meet some margin calls and doesn’t expect to be able to meet future margin calls with its current financing. Then it was TPG RE Finance Trust which also hit a liquidity wall and could not repay its lenders. Then, on Monday it was first Invesco , then EDF Man Capital, and then the mortgage mayhem took down MFA Financial , which stated "due to the turmoil in the financial markets resulting from the global pandemic of the COVID-19 virus, the Company and its subsidiaries have received an unusually high number of margin calls from financing counterparties, and have also experienced higher funding costs in respect of its repurchase agreements." And now that mortgage-mayhem has impacted one of the largest U.S. mortgage firms catering to riskier borrowers .