Skip to comments.Wells Fargo to cut 2,300 mortgage jobs as refinancing slows
Posted on 08/21/2013 6:44:07 PM PDT by xzins
Wells Fargo & Co, the largest mortgage lender in the United States, will cut 2,300 jobs in its home loan business because fewer customers are refinancing as interest rates rise, according to an internal memo reviewed by Reuters.
The cuts would represent around 3.3 percent of the bank's consumer lending employees, the bank said. Although the bank does not disclose how many of its staff work in home loans specifically, Wells Fargo had over 11,000 mortgage loan officers on its payroll at the end of March.
Mortgage refinancing made up more than 70 percent of U.S. home lending volume in the first half of 2013, but it has fallen to around 50 percent of lending and could fall further in coming months, Franklin Codel, Wells Fargo's head of mortgage production, said in the memo.
"We've had to recalibrate our business to meet customers' needs, and to ensure we're operating as efficiently and effectively as possible. Unfortunately, displacements within our team are necessary," Codel said.
The bank had expected higher lending rates to cut into its mortgage business. Chief Financial Officer Tim Sloan said on a July 12 conference call with analysts that rising mortgage rates would likely end the bank's streak of seven consecutive quarters of making more than $100 billion of home loans.
(Excerpt) Read more at reuters.com ...
The Obama Recovery marches on!
With the Fed saying they are going ahead with pulling back on QE, it’s anybody’s guess how soon the market goes crazy.
Stocks were propped up artificially, bonds were kept low artificially, as were interest rates.
Bernanke will get the ax. We’ve already been told that. To his credit he wants to stop all his mad printing of money. So when a money printer starts to get worried, we know that good times are not gonna roll.
Of course, you know, Obama had the ‘Recovery’ well in hand until the Republicans messed it up. (Theme for 2014 Elections)
QE Tapering designed to affect election results
The Wells Fargo Coach is NOT a comin’ down the street.
The reason refinancing is slow is because everyone is losing their jobs. Thank you Obama.
Recovery Summer 5.0.
Awesome they can work as Obamacare navigators!
Too bad the kids are headed back to school. Otherwise, it would time for another STAYVACATION! You can hunker down at home and view photos of His and Her Royal Highness cavorting and eating on Martha’s Vineyard.
Gallup is reporting in their survey that unemployment has jumped from 7.7% to 8.9% in one month.
> Gallup is reporting in their survey that unemployment has jumped from 7.7% to 8.9% in one month.
Then you know the number is probably nearing 20 % in reality of course the magic negro loving MSM will never report it
But, but they just reported that mortgage apps are up and so are home sales by 6.5%. Yeh thats the ticket. :-)
There will be more cuts; just hope I’m not one of them. The application numbers have dropped quite a bit.
Interest rates have been dropping since about 1983. There have been refinance flurries all the way. Rates would level off and even go up a bit; but then they would drop again.
I think that 30 year major move down is over. The industry has too much capacity.
“Did I do that?” pResident Urkel
“Comrades! We have glorious news for you!”
“Magic Negro” denotes bigotry and ignorance.
Try “Black Messiah.” Works for me.
> Magic Negro denotes bigotry and ignorance.
Try Black Messiah. Works for me.
Well if they can call me “cracka” its only fair and it’s not the “n” word technically. BTW - I don’t lump good, hardworking, respectful black people into the same category. I respect them because they deserve it. Thugs, not at all...