U.S. securities firm Bear, Stearns & Co. Inc. announced today that it is combining its mortgage origination lending businesses, and cutting just over 300 jobs.

The firm announced that Bear Stearns Residential Mortgage and Encore Credit are being combined into a single unit under the name Bear Stearns Residential Mortgage Corp. The combination will allow the firm to adjust the business to match current market conditions and increase efficiency, it says.

“We have a powerful mortgage franchise and this combination will allow our account executives better access to the full suite of products Bear Res can now offer,” said Tom Marano, global head of mortgages, rates and foreign exchange. “A hallmark of our franchise has been our ability to adapt to changes in the market environment and product demand.”

As a part of this action, the firm announced today the reduction of 310 jobs across its mortgage origination businesses. Since the beginning of 2007, Bear Stearns has reduced its mortgage origination related workforce by 40%.

Leading the new combined origination unit will be Jeff Walton, current head of Bear Res who has been appointed CEO, and Shabi Asghar, former head of Encore Credit who has been named president.

“Looking ahead, we will soon be expanding our product menu to include Fannie Mae, Freddie Mac and FHA loans,” added Marano. “These additions will increase our capabilities and further allow our brokers to select the products that best meet their customers’ needs.”