Lavish parties fall victim to slump

Wednesday, Dec. 19, 2007 | 7 a.m.

About this time two years ago, real estate agent Ben Correa was laying out his finest semiformal attire for his office's lavish holiday party, held in one of the grand ballrooms at the Wynn Las Vegas.

This year, his boss threw an office potluck.

If mortgage and real estate professionals needed one more reminder of their dismal 2007, they've found it in the chips and dip-filled holiday parties that have replaced the posh blowouts of past years.

"It's drastically different from other times in the market," Correa said.

The mortgage meltdown that has swept the nation was particularly tough on Nevada, which led the nation in the rate of foreclosures.

It has triggered widespread layoffs at lending companies, and employees at companies throwing less extravagant parties this year say they're happy just to have a job.

"This time last year I had no friends who were unemployed, and this year I don't have enough fingers and toes now to count all of my colleagues who are unemployed," said Stephanie Prather, president of the local chapter of the National Association of Professional Mortgage Women. Prather now works at Envision Lending, which she said this year threw an in-house party catered by an Italian restaurant.

"Most companies last year were telling people to invite every past customer and client, and bring all their family members, bring anybody," Prather said. "They would buy everyone gift cards and all kinds of goodies. This year is definitely toned down. They can't turn off the power, so these extravaganzas are the easiest things to cut."

At Countrywide, the largest mortgage lender in Nevada and in the country, the holiday season has been particularly tough, its workers say. One office replaced a party at Del Frisco's Double Eagle Steak House with an office potluck, and workers at other offices say they're not sure they're having parties at all. At an office in Henderson, workers say the manager footed the party bill herself to keep the holiday spirit alive.

"It's definitely not like what it used to be," said one Countrywide worker who did not wish to be identified. "People understand that the budget is tight. And some people could care less about a Christmas party; they're just happy that the office is going to close early."

Banquet bookers at restaurants that are holiday party magnets say they haven't felt the sting from financial and real estate companies that might be cutting back this year. Overall holiday bookings are holding up from last year, they say.

D.J. Kopple, an assistant general manager of Hamada of Japan, said she's seeing fewer groups - but the ones that are coming are spending more money than before and are more likely to allow an open bar.

"Perhaps they want to keep the morale up," Kopple said. "It's a lot easier and cheaper to do a Christmas party than give out Christmas bonuses, and this way people still get something, at least."