Wells Fargo cuts 925 more mortgage jobs

Reuters

By Peter Rudegeair

Oct 17 (Reuters) - Wells Fargo & Co, the largestU.S. mortgage lender, is laying off 925 employees in its homeloan unit as rising rates cut into demand for refinancing.

The San Francisco bank provided a 60-day notice on Wednesdayto the workers whose jobs will be eliminated nationwide, aspokesman said in a statement. The bank will continue toevaluate its staff levels in response to market conditions, thespokesman added.

Wells Fargo's mortgage unit is in a "transitional period" ashigher interest rates in recent months have made refinancingunappealing, chief financial officer Tim Sloan said on an Oct.11 conference call with analysts.

The bank made $80 billion in home loans in the thirdquarter, down 42 percent from the same quarter last year and theslowest quarter for home loans since the second quarter of 2011.

Interest rates on a 30-year mortgage stood at 4.46 percentin the week ending October 11, according to the Mortgage BankersAssociation. That's down from a high of 4.80 percent inSeptember but well above the 3.59 percent mortgage rate fromearly May.

As mortgage revenue declined, the bank aimed to eliminatejobs to save on expenses. In the third quarter, 5,300 workers inWells Fargo's mortgage unit were notified that they would belaid off.

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