San Francisco, CA, United States (4E) – Wells Fargo & Co. announced that it will cut more jobs in its home lending unit as a slowdown in refinancing continues to hurt the sector.
The nation’s largest mortgage lender gave 925 of its employees a 60-day layoff notice on Wednesday, bringing the total number of mortgage dismissals to around 6,200 since July.
A company spokeswoman said in a statement on Thursday that Wells Fargo is committed to keep as many employees as possible, working with them to determine other opportunities within the company.
Last week, the fourth-biggest bank in the U.S. in terms of assets announced that it plans for 5,300 job layoffs in its mortgage business in the third quarter.
The San Francisco-based lender’s mortgage-banking income fell since long-term interest rates rose this summer, making refinancing less appealing. Income in mortgage banking tumbled 43 percent to $1.61bn.
Mortgage originations dropped 42 percent to $80bn, which include loans for buying homes and refinancing.
Bank executives have said that the bank understands the trends in the U.S. housing market and can reposition itself quickly to lower its mortgage costs and boost other businesses to make up for the losses. They also said the benefit of the ongoing job cuts will appear in future quarters.