Wells Fargo Lays Off 323 as Mortgage Demand Drops

Wells Fargo is downsizing its mortgage division and laying off more than 300 people, the bank announced Wednesday citing a slowdown in demand for mortgages.

“While interest rates for homebuyers and lenders remain very favorable by historical standards, the demand for mortgage financing we experienced in recent years has continued to decrease,” said Wells Fargo spokesman Ruben Pulido in a statement obtained by the San Francisco Business Times

Another contributing factor is a “substantial improvement” the bank is seeing in delinquency and foreclosure rates related to the economic recovery and loan medication programs borrowers have taken advantage of, Pulido continued. 

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The San Francisco-based bank will try to place some of its affected employees within the bank’s other divisions.
 
“The decision to reduce our workforce is made with great concern for the team members who are affected,” said another Wells Fargo spokesperson, Julie Campbell. “Wells Fargo is committed to retaining valued team members and, where possible, we will work to identify other opportunities within Wells Fargo.” 

JPMorgan Chase is also cutting thousands of jobs as mortgage refinance volume falls and demand for mortgage origination decrease. 

Written by Alyssa Gerace

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