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Wells Fargo and Citigroup are laying off hundreds of employees in their mortgage units as rising interest rates cause home loan refinances to plummet. More layoffs by banks with heavy exposure to mortgages are expected this year.
July 19 -
Bank of America is laying off hundreds of workers from a unit that services troubled mortgages.
June 24 -
Do mortgage servicing layoffs at JPMorgan Chase indicate there's a light at the end of the tunnel for the mortgage crisis?
June 21
JPMorgan Chase (JPM) is laying off roughly 600 mortgage banking employees in Colorado and South Carolina, according to local news reports.
WMBF News in Myrtle Beach, S.C., reported on its website Thursday that Chase is laying off 450 people in Florence, S.C., and closing its office there. Meanwhile, the Denver Business Journal is reporting that Chase is eliminating 150 employees in Englewood, Colo.
The layoffs are in response to slackening refinancing demand and a slowdown in defaults, which has lessened the need for servicing troubled loans.
"We are responding to our customers changing needs," says Chase spokesperson Amy Bonibatius. "Fewer homeowners are struggling with their mortgages and many people have already refinanced, taking advantage of the stronger economy and historically low rates. We will work with affected employees to find openings at Chase or other local companies."
The layoffs are part of
Other large mortgage lenders, including Wells Fargo (WFC) and Citigroup (NYSE:C) have also
