The biggest home lender in the United States is now in a position where they have to let go of 2,300 of their mortgage employees. Jennifer A. Temple, a spokeswoman for Wells Fargo & Co. (WFC) announced that employees received their 60-day notices, and that the company is working to retain employees by finding other jobs for them.
Wells Fargo is reducing their mortgage-production unit allegedly due to higher interest rates that have caused a reduction in the amount of mortgage refinancing. Those loans according to a staff memo written by Frank Coddell, the head of Wells Fargo’s mortgage production, represented 70% of the mortgage market in the first half of the year, but have now slipped to 50% of the market, and risk further slippage later in the year. With the impact comes a need to cut costs, restructure and reimagine the company and its internal units.
Read the full article by Dakin Campbell of Bloomberg News here: http://www.bloomberg.com/news/2013-08-21/wells-fargo-said-to-eliminate-2-300-mortgage-jobs.html
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