When I moved to Florida, Lydian Data Services (LDS) was my first job in a new state. I worked with a lot of great people and quickly became friends with a number of them. The benefits were decent and the hours were flexible.
The subprime mortgage market was how LDS made its money. By re-underwriting mortgages that were to be purchased, re-packaged and sold as mortgage backed securities, LDS quickly garnered a client base that included some of the most prominent and profitable investment banks in the world.
But then, the subprime mortgage market tanked. Business slowed down, quickly. Eventually, it would almost stop. Some thought it was temporary, like a market correction that just needed to work itself out. But, others weren’t so sure. Some ran for the lifeboats while others stood around wondering what all the hysteria was about. Sort of brings to mind the famous line uttered to a group of first class passengers on Titanic: “We’ve hit an iceberg. They’re going to launch the lifeboats, but you’ll all be back on board for breakfast.” Misplaced hope in the face of utter destruction.
One by one, LDS’s clients either stopped purchasing mortgages or went under altogether until only one remained. And that client, as big and powerful an organization as though they may be, still has not evolved into the amount of business LDS had hoped for.
Layoffs were frequent and scary. About every 4 to 6 weeks, we’d say goodbye to another group of co-workers who were handed their pink slips. A massive cost-cutting initiative ensued. Construction on the third floor stopped. Lights on the second floor were shuttered since there was no one working up there anyway. Little things like plastic spoons in the break rooms were no longer to be provided. The ability to work from home was taken away. Wages were frozen. Bonuses were cancelled. The annual increase didn’t even meet the cost of living increase for the year. We were being handed bad news on what seemed like a daily basis.
LDS’s plans for survival were paltry and ever changing. And, the infrequent updates from management didn’t help, either. One day, I just decided I had had enough. I secured a new position at a significantly less unstable company that was much closer to home and not in the mortgage and banking industry. The co-workers and friends who I left behind, many of whom worked tirelessly towards a very foggy goal, have now been let go. The most recent layoff was Monday, March 24th.
I’m still not sure how LDS plans to survive. In one of the few meetings I was in when I worked there, the management said something about getting a license to do FHA loans and doing them through the retail channel, which I assume means the few bank branches owned by LDS’s parent company. To me, that sort of seemed like replacing a 100 watt bulb with a 10 watt blub and still expecting the same amount of light. It just didn’t add up.
At this point, LDS is still taking on water eventhough they’ve thrown almost everything overboard in an attempt to stay afloat. A lot of their technology is dated. They lease office space in a notoriously overpriced building in an overpriced area. They keep getting rid off knowledgeable, dedicated employees. They can’t find any new clients because of the state the market is in.
Maybe it’s just time to declare the game over.
written by cybercjh
\\ tags: LDS
