The nation's largest home lender confirms fresh round of job cuts
Wells Fargo has continued to retreat from the residential lending arena, laying off hundreds of mortgage bankers this week.
The latest job cuts impacted more than 500 employees, Bloomberg reported, citing a person with knowledge of the situation. Wells Fargo announced last month that it’s taking its home lending business in a “new strategic direction,” which involves downsizing its servicing portfolio and exiting the correspondent channel.
The decision to reduce its size and pivot to a smaller, less complex business focused on bank customers and minority communities were “largely done,” according to chief financial officer Mike Santomassimo.
“We announced in January strategic plans to create a more focused home lending business,” the company said in a statement. “As part of these efforts, we have made displacements across our home lending business in alignment with this strategy and in response to significant decreases in mortgage volume in the broader market environment.”
After announcing the shift, Wells Fargo slashed 140 Springfield, Ill., mortgage jobs later that month – adding to thousands of eliminated positions in its home lending unit over the past year.
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