Wells Fargo Slashes 2,300 Mortgage Jobs
Wells Fargo (WFC) is laying off 763 employees in its Home Mortgage division.August 7
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
Wells Fargo (WFC) is laying off 2,300 mortgage jobs nationwide as the result of flagging demand for mortgage refinancing.
The $1.4 trillion-asset company announced Wednesday that it had slashed jobs in mortgage offices from North Carolina to California.
It cut 365 jobs in Birmingham, Ala., according to The Birmingham News, and eliminated 284 positions in Charlotte, N.C., the company's East Coast operations hub, according to the Charlotte Business Journal. Workers in locations including Jacksonville, Fla., San Bernardino, Calif., and Des Moines, Iowa, were also laid off.
"While interest rates remain very favorable by historical standards for homebuyers, a recent rise in rates has affected consumer demand for mortgage refinancing, causing volumes to fall below what we experienced throughout 2012 and early 2013," a Wells Fargo spokesman said. "We are reducing staff to respond to this shift in demand and to better align and increase the efficiency of our organization."
All employees were given 60-day notice, Wells Fargo said. The company said that it would try to find new positions within the company for those affected by the layoffs.
Other major mortgage lenders, including Citigroup (NYSE: C) and JPMorgan Chase (JPM), have also announced big cutbacks in recent months.