Due to low delinquencies and foreclosures, Wells Fargo said it will let go of 581 employees in its mortgage operations.
It's just the latest in a string of job cuts at the bank's mortgage operations. For example, around a year ago, Wells cut 1,000 jobs in mortgage servicing.
Per San Francisco Business Times, the demand for mortgage financing has experienced “modest” improvements. Amid such a backdrop, considering current market conditions and customer needs, the San Francisco-based banking giant is lowering staff “to better align with current volumes.”
Wells Fargo spokesperson Ruben Pulido was quoted by the San Francisco Business Times saying, “Delinquency and foreclosure rates for mortgage loans have declined to the lowest level in four years and are expected to continue to move closer to historical averages in the coming year.”
Since the mortgage crisis in 2008, banks in the U.S. have increased their workforce to serve rising mortgage delinquencies and foreclosures. But due to the rising economy and the housing market bouncing back, the amount of mortgage loans has gone down.
Employees in Charlotte, Raleigh-Durham, Minneapolis, Seattle and Portland will be affected, but the company will also aim to keep most of those affected and placing them with different duties with the bank.
The company believes that by cutting jobs, it will provide opportunities in improving operations and raising future quarter earnings.