Wells Fargo is eliminating 2,300 positions in its mortgage production department according to bloomberg.net.
"We've had to recalibrate our business to meet customers' needs -- and to ensure we're operating as efficiently and effectively as possible," Wells Fargo head of morgage production Franklin Codel said in a memo to staff according to Bloomberg. "Unfortunately, displacements within our team are necessary."
The reduction in staff is about 20 percent of the bank's 11,406 total mortgage loan officers Bloomberg reported. There have already been other less impacting cuts around the country according to information from individuals who know about the situation.
According to Bloomberg, the bank said mortgage lending will be sluggish the rest of the year since higher interest rates won't trigger people to want to re-finance. Current stats show loan applications comprised 70 percent of the mortgage market during the first half of the year, but went down 20 percent to 50 percent. The number is expected to decline more in the months ahead.
Mortgage numbers for each quarter are expected to fall to less than $100 billion next quarter, which will force Wells Fargo to change the number of people on its staff Bloomberg reported based on information from Chief Financial Officer Timothy Sloan during the company's second-quarter earnings conference call.
The affected workers were given 60 days' notice Wednesday Bloomberg reported. The company hopes to keep as many as possible through other jobs within the firm according to company spokeswoman Jennifer Temple as reported by Bloomberg.
Wells Fargo has focused on increasing lending for home buying by bringing in former University of Notre Dame football coach Lou Holtz for an event in April to assist the bank in persuading real-estate agents and increase business, and decrease the time it takes to complete a loan Bloomberg reported.
"Our focus on purchase business and strengthening our Realtor and builder partnerships is helping us build momentum in local markets," Codel said in the memo.
