Wells cuts even more jobs

by Ryan Smith18 Oct 2013

Wells Fargo is slashing yet more jobs as demand for refinancing stays sluggish, according to a Reuters report.

The nation’s largest mortgage lender announced Wednesday that it will be laying off 925 employees in its mortgage lending unit. The employees received 60 days’ notice of the elimination of their jobs, according to Reuters.

Wells Fargo has been slashing mortgage jobs left and right in the past months as higher interest rates strangled the once-booming refinance market. The bank reported $80bn in earnings from home loans in the third quarter – down 42% from the previous year, Reuters reported.

As refinance earnings spiraled the drain, Wells began slashing mortgage jobs. About 5,300 mortgage employees got pink slips in the third quarter, according to Reuters.


  • by Paulsmoney | 10/18/2013 8:35:17 AM

    ...and so it goes. WF will rely on their lending conduit while it is convenient and let broker submissions carry the day until WF decides maybe they don't want to lend in that fashion. Meanwhile those brokers relying on WF as their lending source get the shaft with declining services because of the lay-offs.

  • by Bill in Florida | 10/18/2013 9:17:33 AM

    They dumped the wholesale traditional conduit last year. They'll continue to live off their huge servicing base for a while longer. Wait till business really tanks and sooner or later they'll have ton get back on tap. Hope the industry can wait that long on these lenders to wake up.

  • by Mary | 10/18/2013 10:22:02 AM

    The Wells CEO made the strategic decision to go directly to the RE Agent for the business. Loan Brokers were irrelevant in his view as the broker channel was only a minimum percentage of their book of business. How has that strategy worked out? Much of the stigma against Loan brokers and originators was propagated and promulgated by this CEO and Chase's CEO. We are all in the same line of work; pointing fingers at one another, doesn't help our Industry.


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