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Wells Fargo Cuts Hundreds More Mortgage Employees on Industry Slowdown

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(Bloomberg) — Wells Fargo cut hundreds of more mortgage workers on Thursday. It’s the latest in a string of industry-wide cuts after rising interest rates halted the pandemic-era mortgage boom.

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Cuts were made across the country, according to people familiar with the plan. The latest wave comes amid continued rate hikes by the Federal Reserve to curb persistent inflation, pushing mortgage rates to their highest levels in his 20 years. Refinancing is drying up and some potential home buyers are being sidelined in the process.

A representative for Wells Fargo said in a statement that it “regularly reviews and adjusts staffing to meet market conditions and the needs of the business.”

The bank’s recent cuts in mortgage units add to the thousands Wells Fargo has already made this year. Rival JPMorgan Chase & Co cut hundreds of mortgage staff in June, redeployed hundreds more, and then cut more. The number of non-bank lenders, which had swelled to 100,000, has also dwindled.

Wells Fargo, the largest mortgage lender among U.S. banks, expects a “tough period for the foreseeable future” due to rising interest rates, chief financial officer Mike Santomassimo said in October. told home. The department reports that in his first nine months of the year, he has seen a 70% drop in fees.

Bloomberg reported in August that the company was planning a long-term exit from the mortgage business, abandoning its long-standing strategy of becoming the largest in the industry. CEO Charlie Scharf has spent the past three years rebuilding Wells Fargo’s business as part of an effort to weather a string of scandals. When he became the first major bank to resume layoffs following a suspension by the United States, he cut headcount by 13%, ceding the title of US bank with the largest number of employees. to JP Morgan.

Read more: After scandal, Wells Fargo shrinks largest U.S. mortgage empire

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