Citi Cutting 1,000 Positions as Refis Decline

CitiMortgage is cutting approximately 1,000 positions, mostly in originations and mortgage default functions in its Las Vegas and Irving, Texas, offices, the company has confirmed.

The originations employees were mostly involved in functions such as sales, fulfillment and underwriting.

It is the decreased demand for mortgages, especially refinancings, which has led the company to take these steps.

A statement from Citi added, “Most of the impacted Irving employees will be reassigned to other work at the site, resulting in an overall net reduction of approximately 1,000 jobs through these actions. While difficult, these actions reflect our ongoing efforts to increase operational efficiency, adapt to changes in the marketplace, and position the business for the future.

“Citi will help impacted employees identify opportunities both inside and outside of the company. Impacted employees will be eligible for Citi severance benefits and transition support.”

Most of the eliminated positions, approximately 760 according to sources, are in the Las Vegas office.

However, the sources noted, Citi is actually adding employees in its retail mortgage operation in core markets across the country (which is basically where it has retail banking locations).

Citi is the latest to announce cutbacks with the aim of right-sizing operations to fit the new higher rate, purchase money market environment. Others include Wells Fargo, Bank of America and Residential Finance Corp.