Wells Fargo is downsizing its mortgage division and laying off more than 300 people, the bank announced Wednesday citing a slowdown in demand for mortgages.

“While interest rates for homebuyers and lenders remain very favorable by historical standards, the demand for mortgage financing we experienced in recent years has continued to decrease,” said Wells Fargo spokesman Ruben Pulido in a statement obtained by the San Francisco Business Times. 

Another contributing factor is a “substantial improvement” the bank is seeing in delinquency and foreclosure rates related to the economic recovery and loan medication programs borrowers have taken advantage of, Pulido continued. 

JPMorgan Chase is also cutting thousands of jobs as mortgage refinance volume falls and demand for mortgage origination decrease. 

Written by Alyssa Gerace