Now that rates are rising and home refinancings are on the decline, Wells Fargo Home Mortgage this week notified 1900 workers they will be let go in May.
A majority of the 1900 were hired for short-term assignments to process mortgage applications, a company spokesman told National Mortgage News.
"These were not loan officers," said WFHM spokesman Jason Menke. "These individuals were in processing and loan fulfillment. They received their 60-day notice (pink slips) on March 23."
She noted that, "We are working with any employee who wants to pursue other options within the company." (Rumors of a layoff first appeared two weeks ago.)
According to figures compiled by National Mortgage News and the Quarterly Data Report, Wells had a stellar fourth quarter, funding $103 billion of residential loans, ranking first nationwide with a market share of 23%.
Wells and its competition enjoyed an unexpected surge in refinancings in the fourth quarter but 1Q has been a challenge for many — though certain firms saw business pick up the past few weeks.
