Wells Fargo confirms mortgage staff layoffs
Wells Fargo confirmed Friday its laying off an undisclosed number of home lending employees due to mortgage market conditions, one week after reporting a major decline in origination volume.
The bank in a brief statement didnt specify which employees were affected nor the amount of staff displaced, and didnt immediately respond to follow-up questions Friday afternoon.
Its the third major mortgage player this week to announce cuts in response to sliding mortgage volumes, following embattled lender Better.com and technology firm Blend.
The home lending displacements this week are the result of cyclical changes in the broader home lending environment, the bank said in a statement. The employees affected by these changes have each been an essential part of our success. We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling.
Wells in an earnings report last week disclosed a 33% drop in origination volume, a freefall CEO Charlie Scharf said was one of the largest quarterly declines that I can remember. The banks net origination income fell to $538 million in Q1 2022 from $1.38 billion over the same period last year. While the lender reported positive servicing income compared to net loss a year earlier, its Q1 2022 mortgage banking income totalled only half the amount it made in the first quarter of last year.
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