Wells Fargo Cuts 925 Jobs at Mortgage Business as Refis Wane
Wells Fargo & Co., the biggest U.S. mortgage lender, eliminated an additional 925 jobs in its home loan unit and has cut more than 5,700 since midyear.
The bank gave the affected employees 60 days’ notice Wednesday, Catherine Pulley, a spokeswoman for the San Francisco-based company, said in an emailed statement.
“We are committed to retaining as many team members as possible” and the lender will try to find other opportunities for employees within the company, she said.
Wells Fargo, which reported a 43% plunge in third-quarter mortgage banking revenue, is cutting staff as home loan refinancings dry up and loans for new purchases fail to counter the decline. The bank announced 4,800 job cuts in the third quarter.
The business, run by Mike Heid, originated $80 billion of new home loans during the quarter, a 29% drop from the preceding three-month period. Pending mortgages fell to $35 billion from $63 billion in the second quarter.
The lender had about 271,000 people on its payroll on Sept. 30, making it the biggest employer among U.S. banks.