No Paychecks for First Magnus Employees.
First Magnus Financial Corp., one of the victims of the recent lending decline, is still not issuing paychecks to its former employees. The Tucson based mortgage lender recently announced the creation of an assistance fund of $1 million in a small attempt to assist the many workers left jobless and penniless.
This last Thursday, almost 6,000 of their employees across the nation learned that they were now unemployed, and apparently, unpaid.
The creation of this fund, with a whopping $200 per employee, will likely do little to stem the problems resulting from sudden job loss, as well as unpaid paychecks.
The company was forced to shut down operations last week because it could no longer sell the loans it originates on the secondary market. The release said shareholders and executives of the company have pledged more than $1 million of their own money to assist Tucson-based former employees who “face significant hardship as a result of the payroll delay.”
Such a terrible situation for the employees reminds everyone of the importance there is to get out of debt and save for a rainy day. Should job loss occur, individuals need to be able to afford to survive until another job can be found, something that can be particularly hard living paycheck to paycheck.
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