Wells Fargo slashes more than 600 mortgage jobs

The bank is making the cuts after seeing mortgage fees fall by more than a third as rates rise

Wells Fargo slashes more than 600 mortgage jobs

Wells Fargo is giving 638 mortgage employees their walking papers as its mortgage business slows.

“After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes,” bank spokesman Tom Goyda told Bloomberg.

The megabank is cutting mortgage jobs in California, Florida, North Carolina and Colorado.

Rising interest rates mean a slowdown in 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 to their lowest level in more than five years, according to Bloomberg.

The slowdown is hardly unexpected; Wells Fargo CEO Tim Sloan warned investors in May that there was an “overcapacity” in home loans, Bloomberg reported.

The bank is also operating under a growth ban imposed by the Federal Reserve, and the cuts may help it boost profitability while complying with the Fed’s order.

The affected employees were notified Thursday, Wells Fargo told Bloomberg. They will receive pay and benefits through Oct. 21, the bank said.

 

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