Wells Fargo Bank, the San Francisco bank that is the country’s largest mortgage lender, said it’s cutting 87 employees mostly in two San Diego mortgage offices as part of a nationwide reduction in workforce caused by a slowing demand for mortgage refinancing.
“The majority of the 87 team members were consumer mortgage loan processors and were from two locations at our Wateridge in Sorrento Valley and Rancho Bernardo locations,” said bank spokeswoman Amy Savicky-Injaian.
Nationwide, Wells Fargo notified 2,323 employees they would lose their jobs, giving them a 60-day notice, Savicky-Injaian said.
Laid off employees are being encouraged to apply for other openings within the bank, she said.
A marked decline in mortgage refinancing occurred in the last three months following an increase in mortgage interest rates by lenders in reaction to speculation that the Federal Reserve Bank will begin reducing massive purchases of federal government bonds, which would have the effect of pushing up interest rates.
The job cuts don’t involve Wells Fargo’s retail branch network here with 104 offices. The bank controls the largest amount of local deposits with about $15 billion.
Earlier this month, Chase Bank announced the layoff of 730 employees at its Rancho Bernardo mortgage office. That reduction was part of an announced layoff of 15,000 employees companywide who work in Chase’s mortgage servicing division.
— Mike Allen