Wells Fargo is slashing still more mortgage jobs as it sees shrinking home-loan volume.
The megabank is laying off 42 Maryland employees as it makes cuts across its mortgage business, according to The Baltimore Business Journal. The latest round of cuts affects employees at a Wells Fargo office in Frederick, Md. The cuts came two months after Wells Fargo slashed 63 jobs at another Baltimore-area location, according to the Business Journal. Last week, the bank announced the elimination of 638 mortgage jobs nationwide.
“It is with great concern for our team members, Wells Fargo Home Mortgage announced staffing changes in Frederick, Maryland,” spokesperson Christina Carmichael said in a statement. “As part of an overall reorganization of our distributed sales, as well as our servicing and fulfillment teams, we are reducing 42 team members to better align with origination and servicing volume in the current environment.”
Rising interest rates have slowed the refi boom that helped Wells Fargo push its profits to record levels. In the second quarter, the bank’s mortgage fees fell by a third, hitting their lowest level in more than five years, according to a Bloomberg report.
The bank is also operating under a growth ban imposed by the Federal Reserve in the wake of its fake-accounts scandal. The cuts may help boost Wells Fargo’s profits while still complying with the Fed’s order.
Wells Fargo isn’t the only lender slashing mortgage jobs. Earlier this month, Ditech Financial announced that it would eliminate about 450 positions.