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Wells Fargo cut hundreds more mortgage employees Thursday, the latest in a series of reductions across the industry after higher interest rates brought the pandemic-era home-lending boom to halt.

Dianne Dobbeck, head of the Federal Reserve Bank of New York's supervision group, said the banking system is sound, but potentially destabilizing risks must be monitored and addressed.

HomeTrust Mortgage disclosed customers' names, addresses and Social Security numbers may have been compromised in the incident.

The benchmark 10-year Treasury in particular tumbled 11 basis points between Wednesday's close and Thursday's open.

Allowing Fannie Mae and Freddie Mac to buy these loans encourages consumers to purchase more expensive homes, the group said.

The layoffs at the lender's Houston, Texas headquarters caught many by surprise as upper management informed employees in October that they had enough resources to weather the market conditions.

Prime mortgage activity fell notably while nonprime deals and government-sponsored enterprise credit risk transfers increased in 2022, according to Kroll Bond Rating Agency.

The company had been the fifth most active Home Equity Conversion Mortgage originator year-to-date through October.

Federal Reserve Chair Jerome Powell said that interest rates could climb less quickly as early as December, but warned that cutting rates "is not something we want to do soon."

Approximately 41% of respondents to a LendingTree survey think one will occur in the next 12 months, with three-quarters feeling it may be worse than in 2008.