Wells Fargo Cuts More Mortgage Workers
February 28, 2014
Wells Fargo, the nation’s largest originator of residential loans, has cut its home-lending workforce by nearly 12 percent since last year, as the refinance boom draws to an end, the Los Angeles Times reports. Wells Fargo announced this week that it would be cutting 700 more jobs from its mortgage business, bringing total staff reductions to about 7,000 in that timeframe.
Rising mortgage rates have prompted an end to the refinance boom.
“We currently expect mortgage origination volume to decline in the first quarter, reflecting seasonality in the purchase market and lower refi volumes,” says Tom Goyda, spokesman for Wells Fargo Home Mortgage. “But we expect the rate of decline to slow from the levels that we saw in the third and fourth quarters of last year.”
In 2006, the mortgage industry’s employment peaked at 505,000, according to the Mortgage Bankers Association. At the end of last year, employment had shrunk to 292,000.
Source: “Wells Fargo Cuts 700 More Mortgage Jobs, Bringing Total Cuts Near 7,000,” Los Angeles Times (Feb. 27, 2014)
Updated: June 18, 2018