Wells Fargo Laying Off Scores in Mortgage Unit

August 22, 2013

Wells Fargo, the nation’s largest mortgage lender, says it will lay off 2,300 workers in its mortgage division due to a decrease in refinancing business. The recent surge in interest rates has depleted demand for refinances

"The main driver is less refinancing volume than we saw last year, and even early this year," says Wells Fargo Home Lending spokesman Tom Goyda. "We needed to respond to better align our team with the market."

Refinances made up 70 percent of Wells Fargo's mortgage originations in the first half of 2013 due to record low interest rates. But now refinance applications have dropped 50 percent, and they are expected to fall even more this year as rates continue to rise, Goyda says. 

Wells Fargo has not disclosed the total number of employees in its mortgage division, but it has about 70,000 employees in its consumer lending division. 

Source: “Wells Fargo Announces Layoffs in Mortgage Unit,” USA Today (Aug. 21, 2013)

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