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.
Update : Game Over
January 28, 2009 — Headstrong, a global financial services consulting firm, has acquired Lydian Data Services, of Boca Raton, Florida.
Financial details were not disclosed.
Lydian Data Services is an industry leader in Mortgage BPO and Technology services having processed mortgage volumes of over $150 billion over the last four years.
LDS’s award winning processing platform supports some of the largest investment banks, financial institutions and Government Sponsored Enterprises.
Headstrong says the acquisition of LDS will strengthen its US operations, through the addition of processing centers in Atlanta, Georgia and Boca Raton, Florida.
Headstrong is a global consulting firm focused on the financial services industry.
Sandeep Sahai, president and CEO of Headstrong said, “This acquisition is strategically timed to take advantage of the current turmoil in the mortgage industry – increased transparency, improved risk reduction and reduced fixed costs for loan fulfillment and review are all necessary for long-term viability of the mortgage stakeholders.”
William Decker, CEO of Lydian Data Services said that Headstrong’s strong presence in UK and Asia will allow Lydian to expand our platform and services reach. “It will bring to the market unified and systemic mortgage processes,” he added.
Well, I supposed it was just a matter of time. I miss my former colleagues and friends from LDS. It was great while it lasted. But, all things must come to an end, I guess.
And, we’re all wondering. “What’s next, Bill?”
One Ping to “Lydian Data Services : Game (Almost) Over”
44 Responses to “Lydian Data Services : Game (Almost) Over”
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1. Bill Decker Says:
April 3rd, 2008 at 2:38 pmInteresting – I want to hear more….
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2. cybercjh Says:
April 3rd, 2008 at 9:58 pmBill … You’re a great guy and I admire you very much. But, you know more about LDS than I ever will.
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3. Anonymous Says:
May 5th, 2008 at 8:00 pmWhat department did you work in at Lydian?
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4. Ben Says:
October 24th, 2008 at 2:03 pmLDS sucked to work for, they hire workers in the Atlanta office that had NO REASON to be there such as Hilary L. she was about as smart as a rock, but yet she made well ove 85K, just for being Bill’s friend, she didn;t know anything about anything. But that clearly let’s you know it’s not what you know BUT WHO YOU KNOW. only if the Feds knew what truly was going on behind closed doors.
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5. Nicole Says:
January 20th, 2009 at 5:54 pmI worked for Lydian. I liked working for them. I hope to work for them again.
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6. cybercjh Says:
January 21st, 2009 at 12:00 amHi Nicole,
Thanks for your comment. I liked working for Lydian, too. It was one of my favorite, if not THE most favorite job I’ve ever had. But, it all went downhill so fast … I felt bad for the people that just couldn’t or just wouldn’t see the writing on the wall. I was sad for it to end. Very, very sad. -
7. anonymous Says:
January 26th, 2009 at 4:19 pmI enjoyed working for Lydian Data Services. The company has a great group of leaders and has made tremendous strides despite tough financial times. Layoffs are always difficult however, this company treated me with respect and provided me a great job with very flexible hours. I hope to work for Lydian Data Services again.
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8. Anonymous poster Says:
January 28th, 2009 at 1:26 pmFYI Lydian Data Services has been acquired by an Indian company called Headstrong.
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9. anonymous Says:
January 29th, 2009 at 10:38 amHeadstrong acquiresLydian Data Serves – GAME OVER
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10. anonymous Says:
January 29th, 2009 at 10:39 amHeadstrong acquires Lydian Data Services – GAME OVER
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11. Andrew Says:
January 29th, 2009 at 11:58 amI too enjoyed my time at Lydian. Being a CA wasn’t the best paying job I’ve ever had (but it payed well) and the work was a less than glamorous (speaking to mortgage brokers all day long gets tiring, I don’t care who you are) and we worked hard, all the time. But the people I worked with were great (bosses included) and upper management always treated me well, as did the company. Over all, I’d say LDS was a pretty good place to work. If given the chance I’d work for them again, if the price is right of course
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12. Anonymous Says:
February 8th, 2009 at 11:03 amI worked for Lydian as well and had a great experience with them. I would love to come back and work for them again!!!!!!!!!
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13. Claudia Says:
February 10th, 2009 at 1:20 pmGreat company to work for!
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14. Stung Says:
March 17th, 2009 at 2:10 pmUpper management treats everyone well until they have no use for you……They promise you they will stick by you. But when the shit hits the fan you take the fall they tell you they will help you find another job but when you ask for help they don’t remember your name
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15. Susan Says:
March 25th, 2009 at 2:36 pmNo sour grapes from me… “Great company to work for!”
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16. Teri Says:
May 22nd, 2009 at 11:31 amOne of the best companies I ever worked for, no sour grapes here either. Heard about Headstrong, hope they start hiring, Ill go back. Anyone got any info?
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17. Anonymous Says:
June 1st, 2009 at 8:02 pmRumor has it they aren’t doing well.
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18. Andrew Says:
June 2nd, 2009 at 1:24 pmIs anyone in the mortgage business doing well? I do hope they survive the housing slump. They’ve made it this far. Let’s hope they pull through.
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19. Vince Says:
July 8th, 2009 at 8:58 pmIt’s not a rumor – they are not doing well. When the same management that ran Lydian into the ground is still running the show, it does not take a genius to figure out the result. Over promise and under deliver – BD’s motto. No new clients, the existing clients send sporadic loans at best, no plan to succeed. The handful of people still there are great but the writing is on the wall.
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20. Anonymous Says:
July 17th, 2009 at 9:13 pmThat’s really sad. Really thought they would have been able to pull through this. They had something really good going.
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21. Vince Says:
July 26th, 2009 at 7:24 pmIt’s sad but expected when the same leadership is running things. Now rumor has it the one main client they have is slowly ending.
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22. Andrew Says:
July 28th, 2009 at 11:11 amI don’t think it’s fair to blame management for Lydian’s demise. Aside from the fly-by-night management style, LDS first and foremost was a victim of the economic melt down, bad management notwithstanding. I mean, how do you run a service company when the people you service stop doing business? Tough place to be in. I’m surprised they lasted this long.
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23. Vince Says:
August 1st, 2009 at 8:03 pmThe problem with management is they put all their eggs in one basket so when one client left, so did the whole business. Diversification is how a business survives. And when you term the management “fly by night” I think that accurately sums up the management style. Let me clarify, Executive Management, not the day to day managers that busted their butts to try to make things work. And the problem continues that they concentrate on one client; ie Fannie Mae thinking that will be the savior without any other prospects.
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24. Andrew Says:
August 4th, 2009 at 11:09 amI worked with a Vince in CSFB Wholesale. Is this the same person?
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25. Stung Says:
August 5th, 2009 at 1:29 pmPeople should wonder what he does behind closed doors with his female employees…..
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26. Vince Says:
August 9th, 2009 at 10:28 pmAndrew – you and I worked for the same company but not the Vince from CSFB days. I was different department. I am not sure what Stung is referring to above.
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27. Andrew Says:
August 14th, 2009 at 11:37 amI have no idea what Stung is talking about either.
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28. Anonymous Says:
August 14th, 2009 at 8:35 pmMaybe fannie mae will pan out. Stranger things have happended.
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29. Vince Says:
August 25th, 2009 at 9:47 pm“Anonymous” – Fannie has been the carrot dangling for 2+ years now. At some point, reality needs to set in with management
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30. Andrew Says:
August 31st, 2009 at 12:56 pmVince, good point. I recall hearing that Fannie was coming on board back in 2006.
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31. Lisa Says:
September 4th, 2009 at 2:34 pmI worked for them until the last day when HeadStrong bought it. You all know that Rory Brown laughed his rich azz all the way to the bank selling a failed company with no prospect on the horizon for recapturing LDS’s glory days.
Be it as it may, I always liked working for LDS. I agree with most of you that upper management left much to be desired; but the employees that worked in the company were the BEST! Tons of talent in that company whose opinions didn’t seem to matter to those who were in charge.
I started with them in 2003 – was part of the original 12 people who started Wholesale. I was treated fairly, underpaid, but treated fairly. Had Bill let the talent that was running wholesale actually run it, it may have been much more successful. Having moved over to the closed loan side, I saw first hand how f**ked up the operation was. Always reactive and never proactive. I agree with Vince, the biggest problem was no diversification. The company spending hundreds of thousands of dollars to write operating software per their client specifications instead of making a software that was “all around” to any client.
In the end, sure I was bitter. I gave so much to a company who never so much as gave me a thank you for my dedication as I was walking that last mile to “laid off”. I know what the circumstances were that wrote my walking papers. It wasn’t all business – some of it was personal having to do with certain employees. All I can say is karma is a real bitch and those who participated in picking the names of people to get laid off – beware, it will come back to you one day.
I miss my Lydian friends, but have moved on to better digs with a company who not only knows my name, but appreciates me and tells me so. I hope those who moved ahead with HeadStrong are wise enough to understand that they should take the first opportunity that comes along and get out. When the Titanic started to sink, even the rat jumped off!
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32. Bronco Says:
September 12th, 2009 at 4:55 pmWe are looking to add / hire an experienced compliance auditor for forensic mortgage audits. All interviews will be confidential. We are established in based in Palm Beach County.
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33. Anonymous Says:
September 13th, 2009 at 4:44 pmWhat is that all about?
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34. Anonymous Says:
September 14th, 2009 at 8:12 pmI want to hear from Bill Decker.
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35. Bronco Says:
September 22nd, 2009 at 10:10 amAs to the message of September 12, 2009. We are a growing loan audit company working with attorney’s and individuals in a foreclosure defense action. We are looking to engage a auditor(s) on a per transaction basis as subcontractors. If there is any interest, please email at oldslowbronco@gmail.com.
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36. Vince Says:
October 4th, 2009 at 10:20 pmHeadstrong keeps getting worse – hire people, not approved to be hired then send them home without being paid. Class act. Oh, but new clients are coming any day, just hold your breath.
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37. Amanda Says:
October 8th, 2009 at 7:13 pmI worked for Lydian for 3 1/2 years I loved it there. I wish I could go back but I am rolling with the economy. Unfortunatly I am on the other side of business now and I am taking homes away. Lydian was a good company. But I agree some of the management could have actually helped when they said they would. No help getting another job they just acted like you were never there. They still had a job so they didnt care. Anybody that needs a job in Broward let me know I can help my company is hiring.
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38. Anonymous Says:
October 12th, 2009 at 10:58 pmHeadstrong is one class act – way to treat your employees well – you know what you did. Funny how Boca employees keep getting kicked to the curb but the ivory tower of Atlanta still has the dynamic duo of husband and wife, a failed owner another manager and no staff. Somehow that untouchable group keeps its job without doing anything to help the company succeed. When you fail with the executives in place why do you keep them? But wait, business is coming.
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39. Anonymous Says:
October 13th, 2009 at 7:05 pmWow. I kind of have to agree on the note that business is coming?? That has been said for how long now? Did Headstrong hire more people and then let them go with no pay?
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40. Manager Says:
November 1st, 2009 at 4:31 pmSo another Friday and another round of layoffs. I really hope the ones there are just there until they find something and not because they believe this company will get new business. What exactly did Headstrong buy? Besides a few over-priced leases, some equipment and an incredibly top-heavy company (managers out-weigh staff 3:1 now), what did they buy?? This is a dead, not even dying, a DEAD company. The sales staff has not brought any new clients for a year, they have lost any existing clients, basically only management is left and no future. And they way they have treated the few remaining employees is classless.
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41. Manager Says:
January 19th, 2010 at 11:50 pmIts official – Headstrong closed today – 1 year after the take over. Another Decker debacle
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42. cybercjh Says:
January 20th, 2010 at 12:57 pmWow.
So, is the company completely closed?! Or, does this mean it’s a 100% India based operation now?
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43. Anonymous Says:
January 30th, 2010 at 8:31 pmWow. That stinks. We all thought Bill Decker would have been able to pull something off. Fannie and FHA are really taking off now.
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44. Lisa Says:
August 17th, 2010 at 10:43 amHeadstrong bought a software, outsourced it’s maintenance/updates to foreign countries, and pushed American jobs out the door.
As was said before, Rory Brown laughed his rich azz all the way to the bank!
RIP LDS
April 27th, 2008 at 6:30 pm
[...] Lydian Data Services : Game (Almost) Over 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 … [...]