Irvine-Based Finova Realty Cuts 40 Jobs in Realignment

Financial aftershocks from last year’s capital markets slump hit Finova Realty Capital Inc. recently, as the Irvine-based commercial mortgage banker said it was eliminating 40 jobs and realigning its lending focus.

Finova Realty, a unit of Phoenix-based Finova Group, said it cut 20 positions at the firm’s Irvine headquarters and certain field offices. Another 20 loan origination jobs were eliminated when Finova Realty closed four offices as part of a program to improve cost efficiencies. The offices were in Salt Lake City, San Diego, West Los Angeles and Jacksonville, Fla.

“Even though our business remains strong, we have an ongoing responsibility to the shareholders of our corporate parent to operate our company as productively and profitably as possible,” said R.J. Brandes, executive managing director.

The commercial mortgage lending industry has been trying to fight its way back since last fall, when fears about a global recession cut off many lenders’ traditional funding sources.

Finova Realty also said it plans to focus more on direct lending, including short-term, floating-rate loans that the company hopes will be less risky.