In their latest development in the changing mortgage market, Wells Fargo is cutting 925 more positions in their home mortgage production division The Des Moines Register reported Wednesday.
"We are reducing staff as we continue to align our workforce based on current market conditions and business needs," Wells Fargo spokesperson Angela Kaipust told The Register.
Of the layoffs, 71 are in the Des Moines area, which brings the company's total number of employees who were given 60-day notices to 479 since July 18.
On July, 18 300 extra workers were notified their positions would be affected through the next two years. Affected employees who cannot find a new position internally will be given separation pay, and outplacement assistance The Register reported.
The cuts are also part of the bank's adaption to the changing mortgage market where people do not want to re-finance because of higher interest rates.
"Mortgage banking revenue was lower in the quarter as the recent increases in interest rates reduced refinance volume, but this impact was partially offset by improved credit and lower expenses," Tim Sloan, Wells Fargo chief financial officer told The Register in a statement.
According to Bloomberg, the bank said mortgage lending will be sluggish the rest of the year.
In August statistics for loan applications comprised 70 percent of the mortgage market in the first half of 2013. However, these fell 20 percent to 50 percent, and is anticipated to further decrease.
In the third fiscal quarter, refinancing made up 26 percent of mortgage applications. This is a decrease from the second fiscal quarter where refinancing was 54 percent, and 72 percent last year.
Despite its struggles, Wells Fargo tallied record earnings of $5.58 billion or 99 cents a share when reporting revenue from the third quarter Oct. 11 due largely impart to cutting costs, and saving money The Register reported.
