Preferred Credit Lays Off About 25 Workers

Preferred Credit Corp. said it laid off about 25 workers over the last month as part of a restructuring by the new management of the Irvine mortgage lending firm. Wayne Walker, who was appointed president of Preferred Credit in February, said those who lost their jobs were part of the support staff for the firm’s loan officers. They were no longer needed because about 50 loan officers decided to leave the company after it changed their compensation from salaries and commissions to commissions only, he said. The company currently has 312 employees. Preferred is seeking to hire more information systems, accounting and other workers to help streamline the company’s operations, Walker said. About a year ago, Preferred settled a case filed by the state Department of Corporations that accused the company of overcharging borrowers by a total of about $1.5 million. Preferred paid a $1-million fine and agreed to repay borrowers. In October, the Minneapolis investment firm NJK Holdings acquired Preferred and ousted the company’s founder, Todd A. Rodriguez, as chief executive.