Wells Fargo plans to eliminate 2,300 mortgage jobs as rising interest rates look to impact refinancing activity, reports Bloomberg News.
As higher interest rates make refinancing “less attractive,” according to individuals with knowledge of the matter cited by Bloomberg, Wells Fargo expects mortgage lending will slow for the remainder of the year.
The job reductions equate to about 20% of the 11,406 mortgage loan officers employed by Wells Fargo as of March 31.
“We’ve had to recalibrate our business to meet customers’ needs—and to ensure we’re operating as efficiently and effectively as possible,” wrote Franklin Codel, head of mortgage production for Wells Fargo, in the article. “Unfortunately, displacements within our team are necessary.”
Those workers whose positions are being cut received 60 days notice this week. Wells Fargo is currently seeking to retain as many employees as possible by placing them in other jobs within the firm, according to a company spokeswoman.
Written by Jason Oliva