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The Philadelphia-based company will eliminate an undisclosed number of jobs as part of a plan to refocus on core business lines and markets, CEO Thomas Geisel said.

Lenders and brokers have slashed two-thirds of the positions added since 2020, but the question now is whether reducing staffing to the level seen that year will be enough.

The Cleveland-based bank says it will submit to a racial equity audit conducted by an outside law firm, as Citigroup and Wells Fargo have previously done. The bank's decision follows a request that regulators investigate Key's mortgage lending practices for alleged redlining.

The California Reinvestment Coalition, the group behind the assessment, is calling for increased nonbank oversight.

Prosecutors claim every dollar in subsidy funds from settlements equates to ten times the amount in value in home lending efforts.

Only a few home lenders have moved to settle the legal claims, while many have denied wrongdoing.

Other positions are being eliminated nationwide, with just 50 to 60 people remaining to manage the company's mortgage servicing rights.

Headcount at the nation's second-largest bank has fallen by around 1,000 since the end of last month. More job reductions are in the works after noninterest expenses rose by 6% during the first quarter.

William Demchak of PNC, Brian Moynihan of Bank of America and William Rogers of Truist had their total compensation reduced last year, as stock prices across the industry fell. The previous year, pay for bank chief executives had soared by more than 20%.

Also, MISMO names new president, Mr. Cooper appoints chief officers, Cenlar, Dovenmuehle add to servicing teams and Fairway goes in on reverse lending.