Wells Fargo Cuts 2,300 Mortgage Jobs

It expects mortgage lending activity to slow down

   

Wells Fargo Cuts 2,300 Mortgage Jobs

jobless unemployment 630 300x227 Wells Fargo Cuts 2,300 Mortgage JobsThe nation’s largest private mortgage lender is downsizing its loan team.

With applications for mortgage loans dropping as interest rates tick higher, Wells Fargo announced on Wednesday that it would cut 2,300 jobs from its mortgage loan unit. The bank currently employs about 274,000, up 4% from last year, CNBC notes.

homeForSale 200x200 Wells Fargo Cuts 2,300 Mortgage Jobs
Existing Home Sales Soar to 3-Year High

Mortgage loan activity slid earlier this month, according to the Mortgage Bankers Association, as the interest rate on a 30-year loan hit 4.88%.

Wells Fargo expects mortgage activity to cool in the coming months as interest rates rise, forcing more potential homebuyers out of the market.

Last year, federal regulators sued Wells Fargo over accusations that the bank offered government-backed mortgage loans to unqualified borrowers.

Shares of Wells Fargo climbed modestly in Thursday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/wells-fargo-cuts-2300-mortgage-jobs/.

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