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Wells Fargo confirms mortgage staff layoffs due to a dropping market value

Wells Fargo branch

Wells Fargo has revealed it is laying off home lending staff due to the ongoing issues in the US mortgage market.

The bank did not reveal which workers were affected or how many were relocated, and it did not react to early inquiries from Business News.

It is the third major mortgage company to announce layoffs in reaction to dropping mortgage volumes this week.

READ MORE: BETTER.COM ANNOUNCES MORE LAYOFFS DUE TO RISE IN MORTGAGE RATES

The bank said: “The home loan displacement this week is a result of cyclical changes in the broader home loan environment. Employees affected by these changes have been an essential part of our success.

"We are disengaging and providing support, such as severance and career counseling, in a transparent and discreet manner.”

employer

The layoffs were first reported on social media, with tweets claiming that 550 mortgage staff will be laid off.

Previously, several mortgage companies have laid off their employees.

Blend cut off 10 percent of its workers, while Better.com took off more than a third of its entire workforce in a series of huge layoffs.

Wells Fargo has been criticized in recent months for allegedly discriminating against black homebuyer referees.

The bank is under investigation by New York City officials and Congress, and it is facing two federal class action lawsuits.

Source: Business News

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