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Wednesday, September 18, 2013

Wells Fargo Cutting 1,800 More Jobs in Mortgage Business

http://www.bloomberg.com/news/2013-09-18/wells-fargo-cutting-1-800-jobs-in-mortgage-processing-business.html

The cuts are in addition to 3,000 earlier this quarter, Tom Goyda, a spokesman for the San Francisco-based bank, said today in an interview. That included 2,300 announced Aug. 21 and smaller reductions prior to that, Goyda said.
Wells Fargo is eliminating jobs as rising rates slow mortgage refinancings and new home purchases fail to make up for the decline. The bank may originate about $80 billion in home loans in the third quarter, a 29 percent drop from the three months that ended June 30, Chief Financial Officer Timothy Sloan said Sept. 9.
Wells Fargo was the largest employer among U.S. banks at midyear with about 274,000 people. The workers whose positions are being cut received 60 days’ notice, Goyda said.
Mortgages typically are divided into those for refinancing existing loans and those for home purchases. While refis are mainly tied to the level of interest rates, purchase mortgages are tied to home-sale activity.

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