August 22, 2013
Wells Fargo & Co (WFC.N), the largest mortgage lender in the United States, will cut 2,300 jobs in its home loan business because fewer customers are refinancing as interest rates rise, according to an internal memo reviewed by Reuters.
The cuts would represent around 3.3 percent of the bank’s consumer lending employees, the bank said. Although the bank does not disclose how many of its staff work in home loans specifically, Wells Fargo had over 11,000 mortgage loan officers on its payroll at the end of March.
Mortgage refinancing made up more than 70 percent of U.S. home lending volume in the first half of 2013, but it has fallen to around 50 percent of lending and could fall further in coming months, Franklin Codel, Wells Fargo’s head of mortgage production, said in the memo.