The 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.
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.