Add PNC Financial Services Group (PNC) to the list of banks slashing their mortgage staffs.
The Pittsburgh bank notified employees this week that they were being let go due to a sharp decline in mortgage lending, a spokeswoman said. The company did not disclose the number of jobs it is cutting or which locations would be most affected.
"We continuously adjust our staffing to meet the cyclical demands of our business," said a statement provided by the spokeswoman. "Currently, PNC is responding to industry trends and lower refinance volume by reducing some mortgage positions."
The $295 billion-asset PNC has seen its residential mortgage business slip this year. For the first six months of the year, it earned $240 million in residential mortgage net interest income and fees, a 25% decline from the same period in 2012. But its home loan originations rose 27%, to $8.9 billion.
News of the layoffs was first reported in the Pittsburgh Business Journal. Other large banks, including Wells Fargo (WFC), Bank of America (BAC) and JPMorgan Chase (JPM), have slashed their mortgage staffs in recent months as rising interest rates and a slowdown in refinancings have reduced mortgage volume nationwide.
The staff cuts coincide with a broader effort by PNC Chief Executive William Demchak to reduce expenses. Demchak said in April that he was aiming for $700 million in expense cuts this year. The bank later announced that it would close about 200 branches to help meet that goal. In June, the company said it would eliminate free checking.