It was confirmed by a spokesman for Texas-based USAA that a reduction round took place in late January, but no further details were provided. The spokesman stated in a written statement that the company made hard business decisions in order to continue providing exceptional service to their members and to adapt to changes in the marketplace, which sometimes means investing more heavily in growth areas and scaling back or stopping work in others. Some employees affected by the reduction worked in the company’s mortgage department.

The mortgage industry has experienced significant changes with increased mortgage rates and economic uncertainty affecting origination volume and the financial performance of companies in the sector. To remain stable, many banks, non-banks, and mortgage vendors have undertaken restructuring measures.

This is not the first time USAA has gone through a reduction. In August, USAA Federal Savings Bank, its depository subsidiary, underwent job cuts. The company’s information technology, client advising, and human resources divisions were impacted by the reductions.

Russell added that whenever employees are affected, they are treated with care and dignity and are supported in finding another position at USAA or elsewhere.

USAA, a financial services firm serving current and former military families through an online platform, has a total of nearly 35,000 employees. The company seems to be actively hiring, with over 158 open positions currently available on its website.

According to the latest J.D. Power survey, USAA would have been the top mortgage originator in terms of customer service in 2022, scoring 797, far ahead of Rocket Mortgage’s 750. However, as it does not serve the general public, it was not eligible to be ranked.

For years, USAA has faced regulatory scrutiny from federal agencies for risk management issues. Recently, the Office of the Comptroller of the Currency criticized the company for discriminatory practices in its auto lending unit. In the previous year, the OCC and the Financial Crimes Enforcement Network imposed a $140 million penalty on USAA for lacking an adequate anti-money laundering program and failing to report suspicious transactions promptly.

In 2020, USAA was fined $85 million by the OCC for risk management problems and violating laws aimed at safeguarding military members from financial harm.