Consolidation by Thrift Holding Firm RSL Financial Means 82 O.C. Layoffs

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RSL Financial Corp., a thrift holding company in Wichita, Kan., that operates one of the bigger mortgage banking operations in Orange County, will lay off 82 workers at its California subsidiary as it consolidates the operations into its Railroad Savings & Loan.

The move to absorb the subsidiary, RSL Mortgage Corp., was prompted by a big drop in home mortgages in the California market after interest rate increases this year killed the long boom in the home refinancing market.

Most of the layoffs already have occurred, and the consolidation is expected to be completed by July 31.


RSL Financial said that secondary marketing, loan servicing, accounting and administrative operations of RSL Mortgage will be assumed by Railroad Savings, its main subsidiary. A company official said that 43 RSL Mortgage sales employees and loan officers will remain in California.

Expected losses at the subsidiary this quarter will likely give RSL Financial “break-even” quarterly earnings compared with net income of $1.2 million in last year’s second quarter.