A few months ago I had one of their employees in a class I was teaching and I got to talking with him. He had been recently hired to solve some problems for them relating to the way they had been doing business. They were intending on converting over out of subprime and performing on a more conventional level.

He did describe a management culture at most levels of the company as being fairly corrupt and short sighted, so I don’t know how successful he’ll be at reforming his end of it. He answers to the CEO so I guess it will come down to whether that person is serious enough about running a clean book of loans or not.

I wish him luck at it, even if reform means the company is no longer competitive. This layoff may be part of that remodel.