On Air Now

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 1230 AM Sioux Falls, SD 98.1 FM Sioux Falls, SD

Weather

Current Conditions(Sioux Falls,SD 57104)

More Weather »
62° Feels Like: 62°
Wind: E 6 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Mostly Cloudy 47°

Tomorrow

Partly Cloudy 74°

Mon Night

Isolated Thunderstorms 49°

Alerts

Wells Fargo cuts 925 more mortgage jobs

The Wells Fargo bank branch is seen in Golden, Colorado October 11, 2013. REUTERS/Rick Wilking
The Wells Fargo bank branch is seen in Golden, Colorado October 11, 2013. REUTERS/Rick Wilking

By Peter Rudegeair

(Reuters) - Wells Fargo & Co , the largest U.S. mortgage lender, is laying off 925 employees in its home loan unit as rising rates cut into demand for refinancing.

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

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

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

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

As mortgage revenue declined, the bank aimed to eliminate jobs to save on expenses. In the third quarter, 5,300 workers in Wells Fargo's mortgage unit were notified that they would be laid off.

(Reporting by Peter Rudegeair, Editing by Dan Wilchins and Gunna Dickson)

Comments