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JPMorgan to lay off hundreds of mortgage staff as housing demand slows

JPMorgan

JPMorgan will lay off hundreds of its mortgage staff as financial companies continue to struggle with high-interest rates.

Sources said the cuts are due to lower industry volumes and will include some managers.

Last year, JPMorgan's mortgage origination volume fell by 60 percent as Federal Reserve rate rises cooled a pandemic-era boom.

Read More: Goldman Sachs announces biggest-ever layoffs which will hit 3,200 jobs

A spokesperson said: “As we’ve said in the past, we regularly review our business and customer needs and adjust our staffing accordingly – creating new roles where we see the need or reducing positions when appropriate.”

The housing market took a major hit last year as the increased cost of borrowing drove away would-be homeowners.

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Recent mortgage rate drops have helped buyers but sales remain under pressure.

Inventory is limited because homeowners are reluctant to give up their lower mortgage rates by selling their properties.

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JPMorgan's latest layoffs add to the hundreds of reductions that have occurred in the housing industry over the last year.

In June, the bank fired hundreds of staff and relocated hundreds more, with further layoffs planned for later in the year.

Wells Fargo, the largest mortgage lender among US banks, slashed house lending by thousands last year.

Nonbank lenders have also been trimming their workforce.

At JPMorgan, “we continue to hire in many other areas and work hard to redeploy impacted employees,” the representative said. 

“In the last year alone, we added more than 22,000 jobs.”

Source: Bloomberg

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